France’s Amundi plans Paris and pan-European funds

Amundi Real Estate will launch a fund to target the Paris office market in the next three months, backed by €300m-€350m of mainly German and Dutch institutional money.

With leverage, the fund will have a total investment volume of €600m. ING Real Estate Finance has provided some of the debt for group funds in the past.

The French manager also plans to draw capital from retail investors for its first fully open- ended fund with a focus on pan-European property, including assets in the UK.

The fund, which is due to be launched by September, will be dominated by offices, followed by retail and logistics assets, and some hotel investments.

Both are core-plus funds, the first with an annual total return target of up to 10% and the second with a target between 5% and 7%. The latter will be structured as an OPCI – a regulated vehicle for the French market designed for retail investors.

Amundi raised €500m from the French market last year – €200m from institutional investors and €300m from retail investors. It hopes to double this in 2011.

The group was created by last year’s merger of Crédit Agricole and Société Générale’s real estate investment business. Across 36 real estate funds it has €4.6bn of assets under management.