Dutch pension fund manager PGGM has entered a €250m French office joint venture with Foncière Atland.
The partnership will target the Paris and Ile-de-France region office markets.
A first asset, a 38 rue de la République, in Montreuil, has been bought for the venture, which will focus on properties offering growth potential through re-letting, re-gearing of leases, refurbishment and redevelopment.
PGGM said the objective was to create properties that become recognised as core assets with strong income return characteristics for the long term and low carbon footprints.
Tinka Kleine, director of private real estate at PGGM, said: “The Paris and Ile-de-France office market offers interesting opportunities to enhance asset performance, both financially and environmentally.
“The partnership with local expert Foncière Atland provides us access to this promising market.”
Foncière Atland, a French REIT, will co-invest in the joint venture, with its subsidiaries leading the acquisition process and managing the assets.
A French OPCI vehicle, created for the partnership, will be managed by Voisin.