Dutch pension fund manager PGGM and French REIT Foncière Atland have set up a joint venture to source value-add office investments in Paris and Ile-de-France.
The joint venture has around €250 mln to invest and has carried out its first purchase with the acquisition of 38 rue de la République in Montreuil.
The partnership will target investments that offer growth potential that can be realised through asset management initiatives such as re-letting, re-gearing of leases, refurbishment, redevelopment and extension infill.
Foncière Atland will co-invest in the joint venture, and its subsidiaries will lead the acquisitions process and manage the assets, which will be held in an OPPCI real estate investment vehicle.
Tinka Kleine, director of private real estate at PGGM, said: ‘We believe that the Paris and Ile-de-France office market offers interesting opportunities to enhance asset performance, both financially and environmentally. The partnership with local expert Foncière Atland provides us access to this promising market.’
PGGM is a cooperative Dutch pension fund service provider with €200 bn in assets under management, of which around €22 bn is invested in real estate worldwide.
Foncière Atland is a French real estate operator, active in Ile-de-France and the provinces, with €650 mln in assets under management.
