French listed group Altarea Cogedim has announced its first office property investment vehicle, AltaFund, raised EUR 600 mln in total equity commitments in its final closing. The fund was 20% oversubscribed. In March the fund raised EUR 350 mln during an initial close.

French listed group Altarea Cogedim has announced its first office property investment vehicle, AltaFund, raised EUR 600 mln in total equity commitments in its final closing. The fund was 20% oversubscribed. In March the fund raised EUR 350 mln during an initial close.

In a statement on Friday, Altarea said AltaFund brings together top-tier French and international institutional investor partners including pension funds and sovereign wealth funds from the Pacific area.

AltaFund will eventually have discretionary investment capacity of over EUR 1.2 bn including leverage, making it one of the largest dedicated office property funds in the Paris region. It will acquire land or existing office assets with the aim of repositioning and selling them in the medium term.

Altarea Cogedim Entreprise has committed EUR 100 mln in the fund and is also the general partner.

'Being oversubscribed at EUR 600 mln, AltaFund demonstrates the group's ability to form a strong partnership with prestigious investors,' said Alain Taravella, chairman and founder of Altarea Cogedim.

Stéphane Theuriau, chairman of Altarea Cogedim Entreprise, added: 'Thanks to its commitment into AltaFund, the office property business should increase its contribution to the group's profits in the medium term. It will enable us to enhance our operating capacity so far limited to third-party project management services, real estate development contracts and forward sales.'

Altarea Cogedim Entreprise was advised by Morgan Stanley for the private placement of the fund, while Clifford Chance and Pardieu Brocas Mafféi gave legal advice.