We’re delighted to share some exciting news about our latest project. The specialist press, and Paperjam in particular, recently highlighted our latest real estate investment in Luxembourg: a boutique hotel ideally located in the dynamic station district.
“Luxembourg’s Gare district is home to a new hotel: Kazakiwi. In addition to its urban and friendly character, which appeals to a large number of travelers, it is also the product of an investment fund, Ream, which focuses on quality accommodation in all its forms.
A new boutique hotel has taken over from an old hotel on Luxembourg’s Rue de Strasbourg: Kazakiwi. And this new establishment has many assets to seduce its clientele: a warm, cutting-edge decor, places to meet, outdoor spaces, a catering outlet, an optimal Internet connection, high-quality bedding and an urban location in the heart of the city.
“With Kazakiwi, our idea is to offer the comfort of home combined with the security of the hotel world,” explains Mandela Gaye Verdeau, the driving force behind the project. But Mandela Gaye Verdeau is also, and above all, co-founder of an investment fund called Ream.
Photo: Guy Wolff/Maison Moderne
An investment fund? What does that have to do with this hotel? Well, everything, because the Ream fund, created in 2017 by Mandela Gaye Verdeau and Jean-Marc Dame, specializes in “paper real estate”, i.e. investment in a fund dedicated to real estate. The fund invests in property development and the management of a diversified rental portfolio. Based in Belgium and Luxembourg, it owns properties in Brussels, Namur, Luxembourg, etc. Ream invests in coliving through the Flexiroom brand, in the development of residential projects via Devlop, and in opportunistic investment in high-yield rental property via Invest.
“I make a point of ensuring that our fund offers concrete solutions based on real value,” explains Mandela Gaye. “It’s by no means a speculative fund. We have the right balance between value and risk, with a riskier part on the development side, but a greater predictability of return assured by coliving. The development of this hotel is the logical continuation and natural development for our investment fund.”
Their investment objective is based on a 6-year time horizon, with an annual return target of 7%. “We work with semi-open-ended funds to take a long-term view, and our asset allocation strategy is done on a case-by-case basis. In this way, we are not forced by a deadline to close and sell. As a result, we can better respect the life phases of assets,” assures Mandela Gaye.
In addition to selling rooms by the night for people passing through Luxembourg, the hotel also offers rooms for longer-term stays, complementing the coliving offer.
“We slipped into the walls of an old hotel that was typical of the old generation of hotels: a small, family-run establishment with around 30 rooms, where guests sometimes stayed for several weeks. Today, this type of establishment is less and less common, giving way to hotels owned by large hotel groups. Kazakiwi is right in between. It’s not family-owned, but it’s not a large international group either.
We’re aiming for sixty rooms, with a restaurant and reception. At present, we have 31 rooms, divided into four categories: mini, standard, superior and cosy. But we also own the building next door, and we’re currently working on it to open new rooms.”
Photo: Guy Wolff/Maison Moderne
Comfort is very important to Kazakiwi. For example, the bedding is worthy of a five-star hotel, there’s a pillow menu and high-quality bed linen, as well as beauty products from Ortigia. Quality filtered water, coffee and tea are also available in the rooms. Check-in is online and door opening via cell phone.
“We’re a small establishment, but with great attention to detail,” assures Mandela Gaye. Everything is lovingly thought out and well done.” For this reason, the hotel has been fitted out with an interior design firm: Sohoo (Carole Guyot).
A range of events is also on offer, including yoga classes on the roof terrace in fine weather, and afterworks.
The hotel also offers a Bed & Bike service for those wishing to discover Luxembourg by bike, and it’s even possible to order picnics for excursions.
Kazakiwi, 13, rue de Strasbourg, Luxembourg.”
Download our guide and discover 3 indicators that allow you to obtain 8% yield on your property portfolio.