FdR's rents up 3.5% in Q1 2012

French listed office group Foncière des Régions posted a 3.5% like-for-like increase in rental income in the first quarter of 2012 as a result of solid rental activity and positive indexation.

Income from rents rose to EUR 127 mln, driven by the office sector which achieved an occupancy rate of 96%. Since the beginning of the year, some 68,000 m² of rent renewals have been signed in France and Italy with a further 24,000 m² in new rentals.

Metz-based FdR reinforced its partnership with security systems firm Thales, which agreed on a new 45,000 m² turnkey programme in Vélizy, bringing FdR's development pipeline to EUR 1.2 bn. The project is being financed with a EUR 110 mln, six-year loan provided by Helaba and Deutsche Hypothekenbank.

Meanwhile, the company has started construction on Phase I of its flagship Euromed Center including 14,000 m² of offices, a four-star hotel with 210 rooms and an 850-space car park.

FdR said it achieved nearly 50% of its total disposal programme for the year in the first quarter with the sale of EUR 663 mln worth of properties. The company has also made progress on its financing structure with the signing of EUR 540 mln of new loans. Another EUR 500 mln of additional financing is currently being negotiated, it added.