Primonial REIM, a key player in real estate investment with over €22 billion of assets under management, is joining forces with in’li (the leading developer of intermediate housing in the Paris region and a subsidiary of the Action Logement group), PRO BTP (a group offering social protection for those working in the building and public works sector) and MIDI 2i (a real estate asset management and financial engineering firm) to set up a strategic partnership aimed at acquiring and developing intermediate housing in the most central areas of Grand Paris.
A LONG-TERM STRATEGIC PARTNERSHIP SPLIT INTO THREE PHASES…
The first phase has already been secured with the contract being signed on 30th September. It will involve acquiring a portfolio of 9 existing buildings comprising 330 housing units and 3 retail premises located at the very heart of Grand Paris (Paris 13th, Courbevoie, Montrouge and Sèvres) and covering a total surface area of around 23,000m².
The second phase will involve developing 5 buildings comprising intermediate housing units for modest-income households. These future assets will consist of 336 housing units covering a total surface area of around 20,000m². They will be located in central parts of fast-growing districts in towns like Le Vésinet, Puteaux and Asnières-sur-Seine within the Grand Paris region.
The last phase will be an extension of the partnership initiated in the first two phases between Primonial REIM, in’li, PRO BTP and MIDI 2i, and will aim to build on the intermediate housing portfolio, which Primonial REIM will manage, over the long term. in’li (responsible for project management assistance) will identify the housing units to be developed beforehand; they will be approved based on a series of acquisition criteria established by Primonial REIM (responsible for the asset and fund management aspects). in’li will be in charge of property management for the entire portfolio through its property administration subsidiary, in’li Property Management.
… TO HELP FILL THE HOUSING GAP AND IMPROVE HOUSING ACCESS FOR AS MANY PEOPLE AS POSSIBLE
Primonial REIM, in’li, PRO BTP and MIDI 2i are all growing rapidly, and this partnership will enable them to expand their positions within Grand Paris in areas offering the brightest opportunities. The Paris region is France’s leading economic hub, with a population of 12.3 million, and Europe’s biggest labour market. It is a hugely attractive catchment area and offers residential property investors a combination of favourable cyclical and structural factors that will continue over the coming years (metropolitanisation, significant rental demand, scarce supply, changing family structures).
There is a real social dimension to the partnership and a shared goal, which is to offer the Paris region’s population access to traditional and affordable housing while supporting tenants through their residential pathways, possibly culminating eventually in home ownership.
Source : Joint release