OFI REIM and F&C to raise €300m with second property vehicle

Building on the success launch of their first real estate vehicle which raised in excess of €200m in 2005/2006, F&C and Paris-based real-estate specialists OFI REIM are teaming up again.

They expect to raise €300 million for their second closed-ended investment vehicle. The first closing of the fund is anticipated to take place in January 2008.

The portfolio will focus on offices and attached retail shops in the Eurozone, in particular in France. The launch is being marketed at institutional investors including pension schemes and managers of global real-estate portfolios.

With rental growth expectations to be 2.2% per annum on average until 2011 and vacancy rates at around 5%, the Parisian market remains OFI REIM's main focus, followed by regional capitals. OFI REIM specialises in mid-sized deals, a segment of the market which is less exposed to competition and overvaluation.

"The French real-estate market is one of the largest and most diversified in the Eurozone" , explained Brigitte Sagnes, CEO at OFI REIM. "We have developed a wealth of experience in investing in under-rented offices, whereby we aim at exploiting market inefficiencies. In particular we create added value by refurbishing the offices we buy or by changing their use."

"We are looking forward to working again with OFI REIM" , said Bruno Moneron, Country Head F&C France. "Our previous venture has been a huge success and we are confident that this launch will attract interest from investors who, in particular through indirect investments, are seeking to diversify away from those parts of the European commercial property market, where returns have cooled in recent months. Both conditions and our complementary partnership should enable us to repeat our previous success ". Brigitte Sagnes concluded: "This partnership with F&C provides us with an indispensable international exposure. The combined talent of our respective teams should enable us to achieve our objectives".