La FranÃ§aise AM, a Paris-based asset manager, has created an extra unit for real estate services through a joint venture with the founder of DTZ Asset Management, Patrice Genre, andplans to invest in riskier assets.
Genre will become president of the unit, which covers institutional investors and is named La Française Real Estate Partners. He and the management will take a 35% share, with the existing real estate division at La Française holding the rest.
La Française says the restructuring should allow its team to achieve higher returns by taking on more risk in its real estate investments.
“Targeting riskier assets, in terms of geographic location and rental risk means we can target returns of between 10 and 15%,” says Marc Bertrand, managing director of the La Française Real Estate Managers, the firm's real estate division.
“These are very attractive but need precision in execution, in-depth customisation, tailored reporting and monitoring.”
La Française Group had assets under management of €42 billion at the end of 2013, which includes three million square metres of real estate assets.
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