Q2 spending spree awaits PE’s favoured French asset classes

France’s hospitality, leisure, light industrial, last mile and self storage real estate markets are becoming the darling of the London-based private equity investors that are awaiting the deployment of the next stream of capital said Guillaume Turcas, Managing Partner, Faro Capital Partners.

“Leisure hospitality in France was anyway active but now is a segment of real estate where a lot of PE wants to deploy capital,” Turcas said in conversation with Real Asset Insight’s Richard Betts. The mid-market segment is a target but the top luxury hotels and top brands, particularly in the South East and on the Atlantic coast and in inner France, are especially in demand.

Last mile and self storage is becoming more sought after, particularly by bigger investors because they can acquire the management platform, and then grow by portfolio acquisition rather than asset by asset.

A spending spree is imminent it seems. “Q2 2024, notably, will be the moment where all the capital that is sitting within the big funds is to be deployed,” Turcas said.