Edmond de Rothschild, which comprises €150bn assets under management, and its subsidiary OROX Asset Management, have set up a fund that they claim uses Artificial Intelligence to identify attractive investment opportunities in key European cities.
Smart Estate Fund combines traditional research and expertise with a proprietary tool to source deals, and “enhance the ability to select the right sector at the right moment of the real estate cycle.”
The algorithm of the AI system is designed to analyse systematically more than 8,000 economic, urban, social, and financial variables, and was developed exclusively by Swiss-based FinTech AAAccell, a spin-off from the University of Zurich.
The Fund works closely with around 20 local operating partners to source the most attractive assets with a positive environmental, social, and economic impact.
Smart Estate signed its first deal on a vacant 26,000 sq ft office building in Levallois-Perret, Paris. The asset, identified by Valream, one of the fund’s local partners, will go through restructuring to respond to new trends such as flexibility of use, energy performance, smart building connection and efficiency.