Danish pensions provider PFA is to invest at least €100 million in the French housing market using a local asset manager.
La Française won the mandate and will acquire and manage a “senior housing portfolio”, meaning homes for elderly people.
The mandate is part of a longer-term allocation to real estate by PFA, which could reach €5 billion by 2023.
According to La Française, PFA has “seized the opportunity to invest in an asset class where demand currently exceeds supply”.
The available stock of senior housing in France is only able to accommodate a small percentage of the population aged of 75 years and older. La Francaise said this segment of the French population is “growing and solvent”.
The asset manager added that it has a long-standing expertise in the senior housing market, already investing over €330 million in the sector through a separately managed account and commingled fund, representing 18 senior housing facilities.
Senior housing has an attractive risk-return profile and a “strong societal impact”, said Michael Bruhn, managing director of PFA.
Marc Bertrand, chairman of La Française Real Estate Managers, said the senior housing asset class was “on the rise” owing to a structural societal demand.
Transaction volume for PFA’s wider property allocation could reach €5 billion across North America, Europe and Asia.
PFA, which has 1.3 million individual customers, had a total portfolio of €10.6 billion managed by its real estate arm at the end of 2019.
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