Amundi Real Estate eyes growth across Europe

French asset manager Amundi Real Estate is looking to build up its international presence and has Germany and the UK on its radar, CEO Nicolas Simon said.

Amundi Real Estate, the property arm of French asset management giant Amundi, is eyeing growth across Europe to provide further diversification to its investors.

The Paris-based group, which is 75% owned by Crédit Agricole and 25% by Société Générale, is upping its efforts to develop a platform in Germany and is considering the establishment of an investment joint venture in the UK.

'Germany is really at the heart of investors' focus at the moment,' said CEO Simon. 'We have just made two acquisitions in the market and we plan to invest more in 2013 and to build a portfolio in Germany's five major cities including Frankfurt, Berlin and Dusseldorf.'

In early March, Amundi RE bought its first buildings in Germany in a transaction financed by BayernLB. The company acquired two core assets, Covent Parc, a multi-let 9,500 m2 office building in the Central Business District of Hamburg, and Atelier an der Medienbrücke, a new 5,400 m2 office in Munich, let in its entirety and on a long-term basis to a publishing house.

The deal, earmarked for its OPCI FCPR fund, is estimated to amount to some €50 mln.

'Amundi RE already has strong real estate investment expertise in France, Italy, Japan and Morocco. With these investments in Germany, it continues to further diversify its funds internationally,' Simon added. L’Etoile Properties, based in Paris and Hamburg, will undertake the asset and property management.

Simon said Germany provides a good investment environment, supported by a low national budget deficit and very low interest rates. 'It offers us an opportunity to buy at 5% with a good spread on property finance costs and in a market that is not so volatile (as other European ones).'

Amundi’s ambitions are not limited to Germany. The company is also looking to grow its investment capacity in the UK where it is seeking local partners to facilitate the investment process. Meanwhile, expansion in central Europe is also being considered.

Simon: 'We are reviewing the creation of property schemes for retail clients in the Czech Republic and Poland. However, this is more something for the years ahead. Today, our main focus is on France, Germany and the UK.'

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