France's Altarea Cogedim has announced the first closing of an office-focused property investment vehicle which raised EUR 350 mln of equity from top-tier French and international institutional partners.

The French REIT said that it has a further six months to bring additional partners to the fund which is targeting a total of EUR 500 mln of equity. The vehicle, with a total investment capacity of EUR 1 bn including debt, is currently the largest investment fund dedicated to office property in the Ile-de-France region, it added.

It will focus on the acquisition of land or existing office assets for restructuring, with the goal of creating a high-quality, core property portfolio with significant environmental value. The properties will then be earmarked for sale in the medium term.

Altarea Cogedim owns a 20% interest in the vehicle and is also its managing partner.

'By endowing itself with a very large amount of capital for office property at a good time in the cycle, Altarea Cogedim Entreprise, led by Stéphane Theuriau, is strengthening and expanding its ability to operate in a strategic market for our Group, ranging from third-party project management contracts and property development contracts to proprietary investments,' said Chairman and founder Alain Taravella. 'This approach, which is inspired by leading North American developers and combines first-class real estate expertise with financial strength, is unique in France. It lays the foundations for the Altarea Cogedim Group's expansion strategy in office property.'

Altarea Cogedim was advised by Morgan Stanley on the structure of the investment vehicle and the placement with institutional investors.