LOMBARD LODIER CAPITAL PARTNERS
WHO ARE WE
Lombard Lodier Capital Partners established in 2013 based in Paris is a young and professional real estate investment and management company held by private investors.
Lombard Lodier Capital Partners (LLCP) has been structured in private placement, whereas tactical, financial and operational management has been mandated to the LLCP management company. This company operates out of Paris, consisting of a lean team of very experienced and highly skilled commercial and residential property professionals. Many of the property management tasks are outsourced to “best in class” third party companies.
The world is changing from all perspectives and changes come hard and fast. The world will continue to grow in diverging and opposite directions. Over the last few centuries, value growth has been based on constant population growth. Many locations now face the opposite as a new long-lasting trend.
Investing in real estate will never be the same. The LLCP mission is to invest successfully in real estate in these changing times. We are about adjusting to rapidly changing markets, preserving and enhancing value by maintaining the highest operational standards, combining economical, technical and market knowledge and, throughout all this, keeping a clear view on human behavior. After all, investing in real estate is like riding a bicycle: to keep your balance, you must keep moving. We keep the balance.
HOW WE WORK
Our approach is based upon the following strategies:
Improving and expanding; we are constantly looking for opportunities to improve and expand our portfolio. We can sell some of the portfolio while simultaneously acquiring new investments to strengthen the key features of our corporate portfolio.
Additional expansion is driven by an opportunistic attitude and an excellent sense of timing. We find our roots in private equity. Our highly experienced and skilled partners have proven ideal in sourcing, structuring, financing and closing interesting new property acquisitions.
Asset and Property Management; together with specialized third parties we take care of the asset and property management of our portfolio: we “provide and operate”. We strive for satisfied corporate users by maintaining our assets to the latest standards, both from a technical and a facilitating point of view. Furthermore, we acknowledge the business models of our buildings’ users and seek constantly for additional value by stimulating cross-selling within our end-user network and our wider corporate network.
INTRODUCTION AFRICAN ESTATE I FUND
Lombard Lodier Capital Partners, a France based Investment Company with Variable Capital (ICVC)operating under the FR regulations governing open-ended investment companies which has been established to provide individuals and pension funds the opportunity to invest in a wider range of African properties than would usually be possible by direct investment and also to allow investors the option of participating in property developments and obtaining the returns that are available to successful developers.
The African Real Estate Fund (AREF) is intended for investment by experienced and knowledge able individuals, professional clients and eligible counterparties. It is constituted as a Qualified Investor Scheme under the rules of the Financial Services Authority for Collective Investment Schemes. The AREF is constituted as an umbrella company that is divided into a number of separate Funds, referred to as Sub-Funds, each of which is operated as separate entity with different investment objectives. Initially there will only be one Sub-Fund, the African Real Estate Capital Growth Fund (the “Fund”), which will have the investment objective of maximizing capital growth, but it is intended to operate further funds with different objectives such as maximizing income or achieving a balance between income and growth.
The purpose of the Fund is to achieve investment returns for the participants in the fund primarily by acquiring undeveloped sites and existing properties that have potential for development, creating development plans, obtaining the appropriate consents and permissions and arranging for the planned developments to be carried out but to allow the fund to maintain a balanced portfolio it will also be able to invest in property related assets. The profits from the completed developments will increase the value of the shares in the open-ended investment company. The Fund will operate solely in the African property market.
The growing urbanization of Africa has aided economic growth, as by bringing large numbers of people close together, it helps to create more efficient labor markets and bigger customer bases, and reduces transport costs. According to UN-HABITAT data, the proportion of Africans living in urban areas grew from 32% in 1990 to 40% in 2010, and is expected to rise to 47% by 2025. Many of the largest cities in Africa are growing rapidly; Nairobi, Kinshasa and Dar Es Salaam, for example, are expected to see population growth of over 70% by 2025. Africa’s mega-cities, which include Lagos, Cairo, Luanda and Johannesburg, are increasingly the engines of its economic growth.
Africa’s city dwellers generally earn more and spend more than their rural counterparts, and the urban middle class is growing across much of the continent. This is helping to create dynamic consumer markets and attracting overseas investors. A recent survey by the Economist Intelligence Unit found that institutional investors now regard the emergence of Africa’s middle class and its growing consumerism as the most attractive aspect of investing in Africa, rather than its commodities.
African retail markets are developing as the demand for consumer goods grows. Several very large modern shopping malls have been opened in North African countries in recent years, such as the Mall of Arabia in Cairo (180,000 sq m GLA) and Morocco Mall in Casablanca (70,000 sq m GLA). In Sub-Saharan Africa, the most well developed and sophisticated retail market by far is South Africa, with numerous large shopping centers across the country. Elsewhere, there are many countries where modern shopping malls are a relatively new phenomenon; The Palms in Lekki, Lagos, regarded as Nigeria’s first modern shopping center, was opened in 2006, while Accra Mall, the first of its type in Ghana, opened in 2008.
Nigeria and Ghana, along with other Sub-Saharan countries including Kenya, Angola and Zambia, have all seen additional shopping centers either completed or commenced in recent years, although their scale is generally smaller than the mega-malls of South Africa and Northern Africa. The construction of further, and larger, shopping centers can be expected, as developers seek to meet the demand for high quality retail space from increased numbers of international retailers entering Sub-Saharan markets and major South African chains such as Shoprite and Pick n Pay pursuing expansion plans in the rest of Africa. Development activity is, however, likely to be concentrated on the biggest and wealthiest cities. In smaller African cities and less well-off countries, small-scale local trading may continue to be the dominant form of retail activity. (Why Africa/reference to Knight Frank Research)
International Property Partners
The investment market has taken on an international dynamic lately. Many European institutional investors are doing business outside Europe and foreign investors are interested in the European market because of the political stability, the balanced economy and the robust and fair legal system.
LLCP has a close working relationship with several reputable European investment/asset management offices in the UK, The Netherlands and France. We know all about the latest trends in the European market and have direct access to foreign markets. Our network provides a wider marketplace and new opportunities for our clients.