First deal for new Investec strategy with £150m pipeline

Financial services group Investec’s UK banking arm has launched a new real estate equity strategy, Investec Realis. The strategy is intended to provide global investors with deal-by-deal access to institutional-quality property in the UK and the first deal has recently closed.

Investec’s head of real estate equity investments Yon Papageorgiou will lead the strategy. He joined Investec in August 2022 from TwentyTwo Real Estate.

Realis is aiming to deploy £250 million including leverage during the next two years, focusing on both asset development and asset repositioning. It will concentrate on highly liquid markets and distressed deals.

Realis’ first investment is the acquisition of 255 High Street, (pictured above) a recently refurbished, 45,500 sq ft (4,180 sq m) Grade-A, EPC A rated office in central Guildford. The transaction was funded with equity commitments from investors based in the UK and the Channel Islands, Switzerland and South Africa.

“UK commercial real estate is witnessing an unprecedented repricing moment and, along with a currency advantage, offers global investors a compelling entry point. Closing this first acquisition, in one of our high conviction sectors, is a significant milestone. With a £150 million near term pipeline, we look forward to accelerating our AUM growth in 2024,” Papageorgiou said.

Investec said it will commit equity to every acquisition alongside investors who will also benefit from its data-led deal origination platform which has already enabled Investec to build a £3 billion loan book and a global network of more than 150 operating partners.

“What differentiates this strategy is the combination of Investec’s 30-year, through-the-cycle track record, its data-led approach to investing and its unparalleled network of best-in-class operating partners. All of these factors mean we are uniquely placed to access off-market opportunities at attractive pricing and then execute a business plan that generates significant outperformance,” Papageorgiou said.