Credit Foncier launches bid for Locindus

Credit Foncier de France, a Caisse d'Epargne subsidiary, has launched a EUR 300 mln public offer for Locindus. The bid of EUR 37 a share represents a 12% premium to the latest price and a 48% premium to the published Net Asset Value at cost. The bid will likely succeed given that Credit Foncier already reached agreement regarding the acquisition of 26,8% of the company from five insurers and other banks, researchers at Kempen & Co. said.

After the offer, Locindus will cede control of SIIC Invest to French property manager and investor Icade, Credit Foncier announced. Icade intends to use SIIC Invest as an investment vehicle targeting hospitals and other government buildings to lease back to the government.

Icade, 72.6% held by Locindus, is specialised in business property and opted for the SIIC quoted property investment company regime in July 2006. It owns 11 subsidiaries which are all located in France. The company will become the SIIC vehicle of Icade Foncière Publique, whose strategy is to manage assets let to public users or resulting from public-private partnership operations.

Locindus is a company active in France. Its principal activity is the provision of finance for the purchase and long-term leasing of industrial and commercial property. Its revenues attributable to regular letting has increased steadily over the last years to come out at 20% of total revenues during the former year 2005.