BNP Paribas REIM launches EUR 500m OPCI fund

BNP Paribas Real Estate Investment Management is creating a new OPCI investment vehicle, SPF1, which will seek to invest around EUR 500 mln in the French retail property sector over the next three years. The vehicle has already completed its first acquisition with the purchase last month of a EUR 160 mln portfolio from the Casino Group. The French retailer is also an investor in the new OPCI fund alongside a number of other institutions.

SPF1 has bought a portfolio of 30 properties located in South-Western France and operated under the Leader Price brand, as well as a Geant hypermarket in Argenteuil, a retail gallery and retail park projects in Castelnaudary. These development projects are pre-let to a number of retailers and are due for delivery in 2012. The acquisition includes 50% of debt provided by BNP Paribas.

BNP Paribas REIM's president Jacqueline Faisant said the creation of this third OPCI investment vehicle illustrates the group's strategy of creating partnerships with large real estate end-users which benefit investors who are looking to diversify their real estate holdings. BNP Paribas REIM, on behalf of its regulated funds, manages a retail portfolio generating over EUR 30 mln in rental income per annum.

Jacques Ehrmann, real estate director of Groupe Casino, said the company is continuing its strategy of externalising its real estate portfolio in a bid to increase the group's financial flexibility.

BNP Paribas REIM and SPF1 were advised by Clifford Chance, law firms Thibierge and Ernst & Young. Law firms Gide, Baker&McKenzie, and Ricol et Lasteyrie advised Casino.