2022, a year of strong growth for La Française Property Managers
Real estate continues to dominate the asset allocation amid a tense economic environment with geopolitical tensions related to the war in Ukraine, accelerating inflation and raw material shortages. In this context, La Française Property Managers (REM) reaffirmed its position as a key player in the European real estate market in 2022 by implementing a real estate strategy built around sustainability, services and location.
2022 is also an important step in the group’s international development. Seeing a significant increase in demand from Asian investors, particularly European real estate, La Française REM has opened its second office in Asia, this time in Singapore, to fuel this growth.
Philippe DEPOUX, President of La Française Property Managers “La Française Real Estate Managers has distinguished itself in 2022 thanks to our strategy to retain and acquire new tenant clients. This strategy consists of anticipating their needs for contract flexibility, services, energy consumption control and long-term support. Lease or re-lease in 2022 with 345,000 m2 provided, our “asset management” quality makes the difference, which allows us to maintain a high occupancy rate of our assets and thus perform in line with the expectations of our investors. renewal and extension of our main French institutional mandate. This allows us to maintain the value of our real estate portfolio We thank our investors for their renewed confidence in this unprecedented context.”
The management company announces a forecast total income of more than 2.1 billion euros from private and institutional client investors for 2022, driven by investor enthusiasm, especially for Sociétés Civiles de Placement Immobilier (SCPIs) and unitary real estate accounts (UC). At the end of 2022, assets under management will be close to 31 billion euros, an increase of about 5% compared to 2021.
As in 2021, La Française REM achieved record total inflows to SCPI funds with nearly €1.5 billion raised in 2022, compared to €1.4 billion in 2021. of SCPI net receipts.
Real Estate Transactions
La Francaise REM has taken on the challenge of geographical diversification thanks to its real estate platform (presence in London, Frankfurt, Munich and Paris). At the end of November, around 10% of assets under management were located outside of France: Germany, Belgium, the Netherlands, the UK, Luxembourg and Ireland. In response to investor demand and to ensure better market coverage, the management company has strengthened its teams dedicated to local markets.
La Française REM will complete real estate transactions worth approximately €2.2 billion in 2022. It has made EUR 1.4 billion of acquisitions and sold approximately EUR 800 million equivalent, with a particular focus on the concentration of assets as well as their Environmental, Social and Governance (ESG) characteristics. The majority of purchases (58%) are for offices, followed by logistics (12%) and residential (12%). 67% of assets are located in Paris and Ile-de-France, with around 13% of acquisitions outside France, mainly in Germany, but also in the UK, Ireland and Belgium. A special note for healthcare assets, a new sector invested by La Française REM since the beginning of the year: 4 healthcare assets in France (a portfolio of three assets in Paris and one asset in Lyon), 1 in Ireland and 1 in Belgium.
Among the most symbolic acquisitions representing the European investment strategy:
- Bristol, Great Britain, mixed use building,
- The center of the city Bordeaux (33), trade,
- Dublin, Irelandhealth asset,
- “Cyber Campus”, Defense (92), office building,
- Nuremberg, Germanybusiness park – “life sciences”,
- Antwerp, Belgiumtwo adjacent office buildings,
- “Alphabet”, Bois-Colombes (92), off-plan office building,
- Quimper (29), last mile logistics warehouse.
Continuity and Services
In 2022, the management company continued to deploy its real estate strategy in the existing portfolio, focusing in particular on sustainability and services, such as:
• Support to tenants within the eco-energy system,
• development of strategic partnerships in terms of energy consumption and
• the launch of Wellcome by La Française, a new tenancy offering offering two key innovations: contractual flexibility (with Agile tenancies – fixed exit dates replaced by commercial tenancies with 6-month notice periods) and a program of exclusive benefits and facilities within the premises to residents with all with cost per series of services.
We still expect a period of significant inflation in 2023. Even if inflation eases, it will likely still be too high to allow central banks to ease monetary policies unless the European zone plunges into a deep recession. In this context, real estate is a defensive investment because rents are indexed to inflation. Under these circumstances, inputs such as the investment program must remain dynamic. However, a cross analysis by asset type and sector of activity will be required to identify the assets that offer the best protection potential. In this context, La Française REM will continue to prioritize the purchase of offices leased to users from sectors of activity less affected by cycles (luxury, energy, transport, etc.), healthcare assets or managed residential properties. as well as downtown businesses with brands in growth sectors. All this is carried out within an ambitious policy of controlling the consumption of fossil fuels and reducing greenhouse gases (GHG). Improvements to existing assets will be supported by strong asset management focused on user customer satisfaction.
About La Francaise
Major changes related to environmental and social issues are all opportunities to consider the future. The new levers identified will shape tomorrow’s growth and financial and real estate performance. It is in this spirit that La Française, the management group, formulates its investment creed and formulates its mission.
The Group leverages innovation and technology capabilities to serve its clients and design investment solutions that combine performance and sustainability.
Organized around 2 pillars, “financial assets” and “real estate assets”, La Française thrives with institutional and high net worth clients in France and abroad.
La Française manages more than €50 billion in assets through offices in Paris, Frankfurt, Hamburg, London, Luxembourg, Madrid, Milan, Seoul and Singapore. (30.06.2022)
La Française is a subsidiary of Caisse Régionale du Crédit Mutuel Nord Europe (CMNE), a member of the Crédit Mutuel Alliance Fédérale (LT A+/Aa3/AA- S&P (12/2021) / Moody’s (02/202) ratings) Fitch (05/2022) ).
For more information: www.la-francaise.com
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Issued by La Française AM Finance Services, a subsidiary of La Française, with registered office at 128 boulevard Raspail, 75006 Paris, France, approved by the Authority for Prudential Supervision and Resolution (ACPR) as an investment services provider under number 18673 X.
La Française Real Estate Managers, a company approved by the Autorité des Marchés Financiers on June 26, 2007 under number N GP07000038, CPI N 7501 200040, Professional Card issued by the Paris Ile-de-France Chamber of Commerce and Industry. the said premises and goodwill and the management of the Property; AIFM approval under Directive 2011/61/EU of 24 June 2014.
La Francaise Group UK Ltd – registered in England under number 4253400. La Francaise Group UK Finance Ltd – Registered in England under number 4717154, authorized and regulated by the Financial Conduct Authority (FCA number: 225360) – Registered office: 78ok Street, Brook Street London, W1K 5EF. These companies operate individually and collectively under the name “La Française Property Managers”; LF Real Estate Managers Germany Deutsche Zweigniederlassung der La Francaise Group UK Ltd – Registered in Germany under number: HRB 79216 Subject to restricted regulations by the Bundesanstalt für Finanzdienstleistungsaufsicht – Registered office: Neue Mainzer Str. 80, 60311 Frankfurt am Main.