French REIT Foncière des Régions generated €498 mln from disposals in the logistics sector in the first quarter of this year as part of an accelerated strategic realignment.
French REIT Foncière des Régions generated €498 mln from disposals in the logistics sector in the first quarter of this year as part of an accelerated strategic realignment.
The bulk of the disposed logistics assets revolve around a €473 mln deal with US private equity giant Blackstone. The sales prices were in line with appraised values at the end of 2013, the company said in a statement.
In total, the company sold off €616 mln worth of assets in the first three months of the year. The remainder involved small office buildings in medium-sized cities in France, disposals in Italy and disposals of service sector properties.
The French company is seeking to refocus its core business on offices with two diversification activities: German residential real estate and hotels. Logistics is no longer viewed as a core activity.
As part of its realignment, FDR has allocated €300 mln for investments in its development pipeline this year, primarily in offices. Another €80 mln (Group share) in residential acquisitions in Berlin is under contract and due to be finalized in the coming months.
In addition, the company's residential subsidiary, FDL, has announced that it is separating its French and German business activities. The German business activities will be acquired by Foncière des Régions and FDL's other major shareholders. Foncière des Régions is a majority shareholder in FDL with a stake of 59.7%, followed by Crédit Agricole Assurances (15.1%), Cardif Assurance Vie (13.7%) and Generali (8.9%).
Following the transactions, FDL will be refocused on French residential property and its property assets will decrease from €3.3 bn to €800 mln.