Amundi readies real estate debt fund

The real estate investment management firm formed through the merger of the real estate platforms of French banks Crédit Agricole and Société Générale is poised to start raising capital for a €300 million fund to provide senior loans to French transactions.

Amundi Real Estate, the real estate investment management firm formed by the merger of the real estate platforms of French banks Crédit Agricole and Société Générale, is poised to bring a real estate debt fund to the market.

The Paris-based firm, which manages about €6.7 billion of assets, reportedly is looking to raise €300 million for the vehicle with a view to investing the capital in transactions, predominantly in France, in conjunction with other lenders, according to Property EU, the European real estate news service. The fund will be managed by Stanislas Henry, head of institutional funds and solutions.

Through the fund, Amundi hopes to make or participate in between 10 and 15 senior loans for transactions reflecting a loan-to-value ratio of 50 percent to 60 percent and involving prime real estate. The firm said the fund would offer investors an option to invest into core real estate with more limited risk compared to equity investments and transactions where the margins are higher.

Amundi joins a growing list of French investment managers raising debt funds for European investments, hopeful of profitably closing a large debt funding gap in the region. Others include La Francaise REM, which raised €150 million for a first closing of its debt fund last month, and La Banque Postale Asset Management, which raised €500 million for its first Europe real estate debt fund.

Amundi employs more than 80 staff across offices in Paris, Milan, Tokyo, Casablanca and Luxembourg. The merged platform manages a combined 42 real estate funds, comprising 23 funds for retail or private banking investors and 17 funds for institutions.