FDL buys EUR 118m worth of property from Predica

Foncière Développement Logements (FDL) has acquired EUR 118 mln worth of property in France from Credit Agricole's insurance arm Predica.

FDL, the Paris-listed residential property arm of Fonciere des Regions, said it has signed a letter of intent with Predica, which is part of FDL's investor base, for the all-share acquisition of two buildings offering 83 residential units in the Paris region. The transaction, generating a gross yield of 4.7%, is being financed with the issue of new FDL stock priced at EUR 18 per share.

This agreement follows closely on the acquisition by FDL in October of two portfolios of 339 residential units in Paris, Ile-de-France, and in Lyon from its shareholders, Covéa Group's MMA and Cardif for EUR 100 mln.

FDL posted flat revenues of EUR 162 mln in the third quarter of 2009. The vacancy rate of its portfolio declined over the year from 3.2% to 2.1% in France and from 2.3% to 2.1% in Germany. The firm sold EUR 104 mln worth of property in the first nine months of 2009, while signing sale agreements for a further EUR 91 mln during the same period.

FDL also confirmed plans to adopt the form of a limited company (société anonyme) and to abandon its status as a limited partnership with a share structure (société en commandite par actions). The company said the change would allow it to accelerate its growth, particularly through new transactions remunerated in shares.