One of Israel's wealthiest businessmen and diamond mining entrepreneur is turning to a new venture--buying out Europe's distraught properties that have been on the verge of recovery, reported The Financial Times.
Billionaire Beny Steinmetz has already hired Chris Papachristophorou to launch Invel Real Estate to operate the $2 billion private-equity venture. Papachristophorou, was the global head of Deutsche Bank's RREEF Opportunistic Investments, which operated in real estate, infrastructure and private equity.
Invel revealed it will buy European properties that were sold by governments and companies streamlining the distraught assets, according to Papachristophorou. Invel's goal is to conjure the buyers to co-invest with each transaction, reported Bloomberg Businessweek.
As countries such as Greece, Spain and Italy are among the European nations attempting to reel in real estate financiers in an effort to cut down the debt, BSG Real Estate is also planning fundraising of their own.
"A lot of people are wanting to invest in European real estate at the moment but are concerned by the eurozone crisis and want some clarity on what they are buying," said Papachristophorou in an interview with The Times. According to Papachristophorou, people want to co-invest with individuals who are well advised on the market and demonstrate a lot of transparency with the assets they're transacting.
"For sure, European real estate markets are seeing a recovery, and the pace of deals will accelerate in 2013 and 2014," said Papachristophorou in a phone interview with Bloomberg. And as the banks' performance improves in terms of surviving losses, more opportunities will head their way.
Papachristophorou, 44, is now the chief executive officer of BSG Real Estate. In 2012, he left RREEF Opportunistic Investments, where is real estate portfolio consisted of streamlining investments in France's Printemps, which are upscale department store chains in France. BSG will give Invel $400 million in start-up capital for the current European real estate investment.
Invel has already eyeballed four assets they're interested in investing, reported Bloomberg. They include Italy, France, Spain and Germany, said Papachristophorou.
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