Asset manager La Française Real Estate Managers and Vinci Immobilier have formed a partnership to source a large volume of residential rental assets located in France.
The agreement is for 500 housing units per year over two years, including vacant housing units and residences managed by the Vinci Immobilier Managed Residences business unit.
La Française REM said the partnership attests to its ambition to accelerate its expansion in the rented residential property market.
The partnership will be targeting residential assets in their broad sense, and will include housing, student housing facilities, senior housing and co-living assets, but situated primarily in Ile-de-France and major regional French cities.
Both companies have high environmental standards and assets will have to adhere to these.
“We are witnessing institutional investors flocking back to residential rental properties, an asset class which is very resilient in terms of rental income and with returns that can be attractive in our low-rate environment,” said La Française Real Estate Managers’ CEO Philippe Depoux. “In order to meet this very structured demand in a very competitive investment universe, we naturally turned to Vinci Immobilier, with whom we have long had a significant volume of business relating to high-quality real estate assets,” he added.
Deal will strengthen Vinci’s multi-channel strategy
Olivier de la Roussière, CEO of Vinci Immobilier said that the deal strengthens the company’s multi-channel strategy in terms of marketing its production of residential operations, much of which is sold to institutional investors.
“This partnership is part of Vinci Immobilier’s environmental strategy, which aims to offer institutional investors ever more responsible and sustainable assets,” he explained.
La Française is a subsidiary of the Caisse Fédérale du Crédit Mutuel Nord Europe and has more than €27 billion under management – nearly 50% of which is on behalf of French and international institutions.