#EXPOREAL Amundi raises €1.5b of new equity in 2014

Amundi Real Estate expects to increase its assets under management by €1.5 bn this year to a total of €9.5 bn from €8 bn previously, CEO Nicolas Simon told PropertyEU in an interview during the EXPO REAL trade fair in Munich.

‘Inflows are about 50% higher than last year’,’ Simon said. ‘This is due to the very low interest rate environment which makes our fund products very appealing for institutional investors but is also a result of the success of the distribution network. Opcimmo, our open-ended retail vehicle, has established itself in the market and is currently collecting €20-40 mln in new equity per month,’ he added. The fund has so far generated an annul return of 6%, which is in line with performance offered by the German open ended funds.

Launched in 2011, the €650 mln vehicle has recently experienced a strong success as it provides French investors with an opportunity to diversity abroad as well as to redeem units on a daily basis. The fund, which has already closed two purchases in London and five acquisitions in Germany, is currently targeting new investments in Frankfurt and Berlin and may look into secondary cities in the future, Simon noted.

More and more French investors are looking to diversify their portfolios with investments abroad. ‘We focus on Europe’s largest markets which can provide the fund with an exit strategy in the future’,’ he commented. ‘Germany has a stable rental situation and a cheap cost of funding so it offers a good alternative to France.’’

Amundi Real Estate currently manages three SCPI funds, including one for Crédit Agricole and one for a banking group as well as an OPCI fund for retail investors. The company rules out the launch of new funds in the near future as it plans to continue to focus on just a few flagship vehicles, Simon explained.
‘Size is important and a critical mass allows these funds to be recognised in the market. We have already merged two SCPI funds and we are looking to merge another SCPI vehicle, known as Genepierre, with a product from the Société Générale network [Amundi is owned by Crédit Agricole and Société Générale]. Opcimmo is currently the smallest fund we manage but in three years time it may well be the largest at the current rate of inflows.’