Amundi prepares launch of EUR 700m Paris office fund

Amundi Real Estate is planning a new fund targeting core and core-plus office properties in the Greater Paris area, CEO Nicolas Simon told PropertyEU in an interview.

'The construction of a new railway network connecting Paris to its suburbs will create new opportunities for investment in the Grand Paris area,' Simon said during the Mipim trade fair in Cannes, adding that he expects the fund to be up and running by year-end. The vehicle, to be named Amundi Greater Paris Office Fund, will be targeting equity of between EUR 300-350 mln which with leverage will give it spending power of some EUR 700 mln.

'The fund will look to invest in a mixture of existing buildings and developments, with the cashflow provided by the existing assets to be used to finance the projects,' Simon noted. The Greater Paris fund follows the close last year of a France Regions Office Fund.

Amundi, the property investment company created from the merger of Credit Agricole Asset Management Real Estate and Société Générale Asset Management Real Estate Investment Managers, raised a total of EUR 1.8 bn of equity for its retail and institutional business in 2011, bringing its total assets under management to EUR 6.7 bn.