In a move to diversify its portfolio against other types of financial assets, Spanish insurance group Mapfre has joined forces with Swiss Life invest to in office assets in France.

The companies said the new vehicle will invest in the prime office locations of the main French cities and will be managed by Swiss Life Asset Managers, Real Estate France.

In France, Swiss Life AM, Real Estate, is represented by the AIFM Swiss Life REIM (France) which will be the management company of the new vehicle.

This vehicle will invest with a first size target of up to €150m of equity, and the objective is to achieve returns of between 4% annually within a period of one to two years.

Swiss Life will seed the vehicle with 2 assets. This initial investment of €75m consists of two typical Haussmann buildings located in Paris.

Other investments are planned, and Mapfre has the intention of moving quickly in order to invest in the pan-European real estate.

This move is part of Mapfre’s strategy to diversify its portfolio against other types of financial assets and gradually increase its alternative investments.

Earlier this month, Mapfre and GLL Real Estate Partners joined to establish a €300m office fund to invest in key Eurozone markets.