La Française’s “real estate” pillar posted €3.7 billion in gross inflows in 2019, 16% more than in 2018, bringing its total real estate assets to €23.6 billion as at 31/12/2019.
32% of 2019 inflows in real estate come from foreign investors, mainly from Asia.
The low interest rate environment favored investments in real estate. The European market continues to attract institutional investors as evidenced by the co-acquisition of Crystal Park in Neuilly-sur-Seine with Samsung Securities, the signing of the joint venture with the CMNE and CPPIB (Canada Pension Plan Investment Board) for the development of Foncière du Grand Paris and the co-investment in D-Square in Luxembourg alongside South Korean investors. The mandates signed in 2019 represent nearly €2 billion in inflows for La Française and the first weeks of 2020 confirm this trend, particularly with the signing of a mandate with PFA, the Danish pension fund.
Retail investors favored collective real estate investment vehicles in 2019, and La Française benefited greatly from this interest thanks to a complete and diversified range allowing it to reach a historical record of gross inflows with more than €1.2 billion. The attraction for unit-linked life insurance contracts suggests good prospects for La Française and its real estate offering in 2020.
Thanks to its European investment platform with management centers in Paris, Frankfurt and London, La Française signed €4 billion in acquisitions on behalf of retail funds and mandates and sold €330 million, in a dynamic European market, particularly in France with the volume of commercial real estate transactions reaching €38.6 billion (Source: CBRE). The most emblematic acquisitions included:
· The Watt in Courbevoie (92), offices;
· The M in Paris (17th), offices;
· The Smart’Up in Chatillon (92), offices;
· The 6B in Lyon (69), offices;
· The Identity 2 in Rennes (35), offices;
· The World Rugby House in Dublin (Ireland), offices;
· The Steag in Essen (Germany), offices;
· Ansgari Haus, Bremen (Germany), offices and retail;
· The Baxter Building in Amsterdam (Netherlands), offices;
· The Babel Community, co-living building in Marseille (France).
Source : Company