Unik, a real estate structurer
Article written by Jean-Denis Errard - Gestion de fortune n°313 - April 2020We met Sylvie Proia, CEO and Partner, with Christophe Kadi, COO. Together with Christoph Tunkl, she founded Unik Capital Solutions, a Luxembourg-based company specialized in real estate investment solutions in Europe.
Unik Capital Solutions, incorporated in November 2018, offers dedicated alternative investment fund (AIF) strategies. "Solutions that we tailor with our clients, who are exclusively professional investors" 1. Unik Capital Solutions organizes the structuring and investment policy, "but we let the assets be managed by the approved management companies with which we have signed a partnership", explains Sylvie Proia, co-CEO. In addition to Luxembourg, the company offers its solutions in Germany, Belgium and Switzerland as well as in France (for 10 to 15% of its market). "We offer four different business lines for our clients, which include family offices, asset management companies and private banks.Unik Yield (core, core+)
The objective is to build up a European premium real estate portfolio. The idea is to support major retailers in Europe with long-term firm rental leases. "In terms of positioning, we have excluded offices and retail space, because of the current abundant supply," explains Christophe Kadi. We are targeting the whole of Europe (excluding France) with three segments: hotel walls, retirement home walls and e-commerce logistics platforms. A first acquisition is underway in Portugal for the walls of a four-star hotel. In retirement homes, targets are being studied in Germany, Luxembourg and Spain. In logistics, operations are planned in northern Europe. For tax purposes, this Luxembourg SICAV is subject to property tax (i.e. flat tax), which can obviously be advantageous compared to an SCPI.Unik Value added (activity of promotion and property merchant on real estate assets in Luxembourg).
The strategy essentially involves carrying out works/transformation allowing capital growth over a medium-term investment horizon.Unik Bond (private debt issues dedicated to premium development operations in Luxembourg).
The interest, comments Christophe Kadi, is to allow bond managers to diversify "because currently to generate returns they have to bet on triple B issues, therefore highly risky on medium-sized companies".Unik Solutions (white label).
Purely a real estate engineering product, this solution allows to benefit from the development of customized real estate investment and structuring solutions.Made to measure
These solutions we offer are differentiating," explains Sylvie Proia, "in that we don't create a product to impose it on the market, we do the opposite: the market (professional partners) tells us what it needs. We do customization, with a very pragmatic approach to the type of asset". The four lines of business can be included in a Luxembourg life insurance company, without any question of referencing as in France.
It should be remembered that in Luxembourg, the life insurance envelope is adapted according to the investor's typology, with possible access to complex investment solutions of one's choice through dedicated internal funds (managed by asset managers). "The more capital you have, the more you can make assets such as private debt, private equity and even commercial companies, with unique investment strategies, eligible," emphasizes Christophe Kadi. These solutions from Unik Capital Solutions can be inserted in all Luxembourg insurers without having to go through an eligibility committee, as in France (since the solutions are included in the circular 15/03 of the CAA Luxembourg).Most of the solutions are structured as FIAs (AIFMD directive) or through investment issues dedicated to institutional investors, with a licensed company (bank and management company) to manage, an appraiser (MRICS) and an auditor (one of the big four), "but never in club deals, because the final investor is not protected", concludes Sylvie Proia.
Article written by Jean-Denis Errard - Gestion de fortune n°313 - April 2020
1. Unik Capital Solutions S.à r.l. is a Luxembourg company not regulated by the Commission de Surveillance du Secteur Financier (CSSF). It acts only as a Third Party Marketer (structurer on behalf of the client). The FIAs offered by the company are exclusively aimed at professional investors within the meaning of Directive 2014/65/EU "MIFID 2".