Paris, 24/03/2020
As the Coronavirus epidemic accelerates and spreads across the world, Primonial REIM is fully committed to protecting the health and safety of its employees whilst also continuing its business activities protecting the interests of its client-investors.
The asset management company has activated its business continuity plan, designed specially to deal with exceptional situations, allowing it to adjust its financial, technical and human resources to ensure the continuity of its operations.
PROTECTING THE INVESTMENTS OF ITS PRIVATE AND INSTITUTIONAL CLIENT INVESTORS
As a major property investment company representing 70,000 private and institutional client investors, Primonial REIM keeps a very careful eye on the performance and protection of the assets of its property trusts.
In the current situation, Primonial REIM has been very carefully watching over the property markets. The Research & Strategy team has been producing detailed weekly economic analyses measuring the impacts of Covid-19, especially as regards the each of the different property asset classes.
The property managers have been using these analyses to adjust investments to keep them in line with the expected trust performances. Daily performance evaluations are completed by the managers for all of the property trusts (SCPI, OPCI, SCI, etc.) along with stress tests/crash tests to ensure the agile and effective management of each trust.
In the light of the current analyses, Primonial REIM can confirm that it is fully able to meet its commitments to its client-investors in terms of both ensuring that complementary revenue pay-outs are made on time and that the invested capital increases in value over time.
Additionally, for the last 15 days, Primonial REIM has been communicating weekly market reports to its clients and partners to provide them with as much clarity as they can on the current situation.
ENSURING ASSET RESILIENCE THROUGH DIVERSE PROPERTY ALLOCATIONS AND SELECTIVE INVESTMENT APPROACHES
Right from the start Primonial REIM’s investment policies have been designed to stand up to economic shocks. The asset management company’s portfolio has a very effective leasing risk spreading aspect thanks to an asset allocation that is diverse both in terms of geographical locations and business sectors combined with a selective investment approach in terms of building efficiency, location quality and tenant.
Remember that more than 83% of Primonial REIM’s assets under management are constituted of core office buildings located in Paris/1st ring and leased to major corporations (54%) and healthcare properties operated by major private European operators (29%).
These assets are completed by a diversification bubble made up of retail units with a priority on high-street outlets (10%), residential properties located in the leading French metropolitan areas (4%) and hotels mostly owned in partnership with B&B hotels, one of the sector’s most economically solid operators (3%).
PARTICIPATING IN THE NATIONAL EFFORT BY SUPPORTING SMALL BUSINESSES AND TENANTS IN DIFFICULTY
Primonial REIM has answered the call sent out by the (French) Government asking landlords to help small businesses faced with difficulties and set up rent suspensions for small and medium sized business in line with ASPIM and landlord representation associations and federations recommendations.
And in addition to this, Primonial REIM has built on the increased strength of its ties with its tenants and understanding of the economic issues they are facing to set up targeted measures using approaches specially adapted to the tenant’s business sector (rent to be paid in instalments or postponed, payment delay arrangements, etc.).
For those retail tenants who were forced to close their businesses, Primonial REIM will set up close dialogue channels to provide them with individual support and situation evaluations.
A CIVIC APPROACH TO SUPPORTING THE HEALTHCARE OPERATORS
Primonial REIM has decided to engage strong support measures by postponing rent invoicing for the 2nd quarter of 2020 for French medical, surgery and obstetrics establishment (MCO) tenants which have opened their establishments up to Covid-19 patients to help the public health service hospitals in the fight against the pandemic.
Civic commitment has always been a part of Primonial REIM’s DNA. As the leading healthcare property asset management company in Europe, it has been supporting associations and public establishments working in the healthcare sector for many years, notably through its SCPI Primovie, a trust that participates actively in supporting and sponsoring the Necker Hospital for sick children.
Research to rapidly find medical solutions and eradicate the pandemic must remain a priority. And Primonial REIM would also like to relay the contributions collection launched by its partner the Necker hospital for sick children in support of the AP-HP’s Covid-19 research efforts concerning. https://hopital-necker.iraiser.eu/coronavirus/
During these times of adversity, Primonial REIM would like to express its solidarity and recognition of all the healthcare professionals who are courageously and selflessly fighting this pandemic.
About Primonial REIM
Primonial Real Estate Investment Management (Primonial REIM) is a portfolio management company certified by the AMF in 2011; it creates and manages a range of investment schemes based on strong property market convictions. Its main objective is to propose a range of SCPI that invest in office, retail, health/education and residential property to the broadest possible client-base.
As a portfolio management company Primonial REIM sets up and manages OPCI (specifically aimed at either institutional or general public investors). On 10 June 2014 Primonial REIM received AIFM (Alternative Investment Fund Manager) certification from the Autorités des Marchés Financiers (Financial Markets Regulator), and is therefore subjected to stricter obligations in terms of information, liquidity monitoring and risk management. The Board of Directors includes Grégory FRAPET as Chairman, Stéphanie LACROIX, Managing Director and Tristan MAHAUT, General Secretary.
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