MNK Partners launches the MNK EUROPE+ SPF, a real estate yield fund to meet inflation, with a carbon neutrality objective

MNK Partners, an independent French asset management company specializing in pan-European real estate investments with high value potential, announces the launch of MNK EUROPE+, a specialized professional fund (FPS) under French law in the form of an FCP, with the aim of investing in Western Europe in real estate assets with a “Core+” strategy, diversified and socially responsible.

Mansour Khalifé, President of MNK Partners, explains: “MNK EUROPE+ is a real estate yield fund designed to respond to the galloping inflation in Europe. Mainly linked to the health crisis, but also to the geopolitical climate destabilized by the war in Ukraine, inflation continues to beat record levels with +5.2% in May 2022 for France. The search for a positive real return is becoming more urgent than ever to fight against the loss of purchasing power due to inflation.

The objective of the MNK EUROPE+ SPF is to offer a regular distribution allowing for a return of over 5%/year (not guaranteed). The fund has a 7-year lifespan, including 3 years of investment during which the company is committed to obtaining an “SRI” label and eventually aiming for a “net zero” in terms of greenhouse gas emissions.

The fund is eligible for the categories of investors authorized by Article 423-27 of the AMF General Regulations, who subscribe to a minimum of €100,000 (professional investors/clients or similar). It is authorized for marketing in France, Luxembourg and Belgium. MNK Partners will market the fund via CGPs, family offices and private banks with a dematerialized subscription process. The MNK EUROPE+ SPF is also accessible through life insurance contracts.

The fund, which has been well received by the market since its launch, plans to invest around 20 million euros by the end of 2022 in assets currently under negotiation.

A diversified return strategy committed to European real estate

MNK EUROPE+ will invest primarily in Western European countries with strong macroeconomic fundamentals coupled with mature and liquid real estate markets such as France, Germany, Portugal, Spain, Ireland and the Netherlands.

MNK EUROPE+ will target assets with strong value creation potential to generate a steady return coupled with capital appreciation. It will invest in major cities and/or secondary cities in assets that are secure in terms of location, quality of tenants and medium to long-term leases.

The fund will favor socially responsible investments to create a portfolio that will tend towards a “net zero”. These assets will benefit from an existing or future label with the implementation of work to improve energy emissions.

Mansour Khalifé confides: “Our aim is to fight against the excess greenhouse gas emissions of energy-intensive buildings, whenever possible, by investing in socially responsible assets and/or those that can move towards carbon neutrality.

An “active” management pocket for greater agility

An “active” management pocket investing in unlisted and listed financial securities, always linked to real estate underlyings, will be set up to provide greater liquidity, but also to complement direct investment in real estate.

Limited to an average of 15% of the fund, this pocket will make it possible to take positions in real estate debt, liquid real estate funds, or even club deals, for example, with shorter maturities (between 1 and 3 years).

Mansour Khalifé adds: “This innovation in the management of real estate funds, mixing direct and non-listed real estate on the one hand and more liquid real estate on the other hand, will allow MNK EUROPE+ to broaden its diversification on different yields/risks and to expose itself to promising themes such as data centers, 5G towers or e-commerce, thus reinforcing its agility.