FPF takes over SNI's commercial property unit

French SIIC Foncière Paris France (FPF) has announced the signing of a preliminary agreement to acquire the commercial property arm of Société Nationale Immobilière (SNI), a unit of Caisse des dépôts et consignations. The financial details were not disclosed.

This is FPF's first acquisition in 2010. The company's portfolio was valued at nearly EUR 450 mln at end-June 2010 and it posted a net operating result of EUR 9.5 mln in the first six months of 2010, after a loss of EUR 14.5 mln in the same period a year earlier. 'Over the course of the first half, the market has seen a stabilisation of property values and the portfolio owned by FPF has reported a slight increase in value (+0.3%),' FPF said.

The disposal is in line with SNI's strategy to focus on its core business of social housing and residential properties. The business unit being sold controls a portfolio of six office buildings in Paris with 47,000 m² of total surface and a value of EUR 160 mln, as well as a real estate management agreement with the City of Paris to manage around 20 office and retail assets in the French capital. The subsidiary also employs a staff of 17 in charge of asset and property management.

The transaction is expected to be completed by the end of 2010.

'The operation will allow FPF to significantly increase its portfolio while expanding its activities and it is fully in line with its development strategy,' the French SIIC said. Founded in 2005, FPF has a portfolio consisting of 43 commercial property assets located in Paris and its surroundings.