Chris Papachristophorou, the former global head of RREEF opportunistic investments who left Deutsche Bank Asset Management towards the end of last year, is back in the higher yield-investing game with plans to deploy $2 billion of capital across Europe.
Papachristophorou has joined Beny Steinmetz Group Real Estate (BSGRE), the real estate division of the Beny Steinmetz Foundation to launch Invel Real Estate (Invel). With $400 million of committed seed capital, the new platform has an overall target of putting $2 billion to work alongside co-investors.
The strategy is to capitalise on corporate and government restructuring, distressed situations, and asset redevelopment and repositioning, it said. BSGRE will provide the seed capital and selected investors will have the chance to co-invest on a transaction-by-transaction basis, the company further explained.
In a statement Invel said it was “uniquely positioned to identify and react quickly to opportunistic real estate investments” and would provide investors with the ability to take advantage of the current cyclical downturn in European real estate.
“The platform will benefit from Papachristophorou’s extensive track record in global real estate investing combined with BSGRE’s active involvement in high-yielding real estate projects in Europe and the US, as both an investor and developer over the last two decades. Their combined transaction experience is in excess of $40 billion of real estate gross asset value, having completed numerous landmark transactions with successful results,” said Invel.
In addition to his role as managing partner of Invel, Papachristophorou will also take on the role of chief executive officer of BSGRE.
Papachristophorou, who is based in London, said: “I’m excited to have the opportunity to work with a group that has demonstrated over the years unparalleled, multi-cyclical investment skills in the high yielding real estate sector and which is now looking to transform its experience into a more robust business model.”
Prior to leading RREEF’s opportunistic business, he was the co-chief execuitve officer for RREEF Alternatives in Europe, Middle East and Northern Africa. During his 15-year spell at RREEF, he completed or restructured over 60 investments totalling in excess of $20 billion of gross asset value. Amongst other deals, he led the corporate restructuring, refinancing and repositioning of the French department store Le Printemps; the acquisition, repositioning and subsequent sale of La Rinascente, Italy's leading department store; as well the acquisition, subsequent restructuring and sale of Newreal, then the commercial real estate subsidiary of Enel, Italy's largest power company.
For more on Papachristophorou’s new venture, including a hire by Invel from New York’s Ranieri Real Estate Partners, see this month’s edition of PERE.