A French insurance company is buying a fund of 7,600 housing units in buildings in Ile-de-France and major French cities for 2.4 billion euros.
French insurer CNP Assurances will buy a €2.4 billion housing portfolio from CDC Habitat. Subsidiary Caisse des Dépôts (CDC), which manages more than 525,000 housing units, describes the operation as “exceptional in scope” and specifies that it is being carried out “after a competitive process involving about thirty French and foreign investors.”
“The Biggest Real Estate Deal Ever Made” by an insurer
This, in turn, was stated by the investment director of CNP Assurances Olivier Guignet. Echo that “this is the biggest deal we’ve ever made in real estate.”
“This investment in a residential property portfolio with affordable rents and high environmental quality is in line with our role as a responsible investor and our raison d’être, which is to act for an inclusive and sustainable society. In addition to our contribution to the fight against inequality in access to housing, investment in rental housing also benefits our policyholders by offering stable and sustainable returns,” said Stefan Dedeyan, CEO of CNP Assurances.
The deal is done “in the interest of housing construction,” according to CDC Habitat, which intends to keep the pace of housing construction “driven by two recovery plans announced in 2020 and 2021 that average more than 20,000 housing additions. in year”.
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7600 housing units in major cities
The 7,600 dwellings are in “new buildings,” 50% of which are located “in the Île-de-France close to transport networks” and the other half in “major French cities,” according to CDC Habitat. These investments enable more affordable housing to be offered (with 30% intermediate housing and 70% rent-adapted housing). An investment in a “more inclusive and more sustainable society,” according to a press release from CNP Assurances, which also indicates that half of the housing is new developments with better energy performance.
According to the insurer, residential real estate is an “attractive” and “sustainable” investment, which indicates that this is an operation to diversify its properties and investments in order to “balance the distribution of its real estate portfolio”, which is currently focused on commercial assets that are fully least affected by the health crisis and usage transformation (remote work, e-commerce, etc.).