French group Fonciere des Regions (FdR) said that it has increased its stake in its logistics arm, Fonciere Europe Logistique (FEL), with the purchase of a 14.6% interest from Morgan Stanley for around EUR 47 mln.

The move, which is part of an effort to simplify the company's structure, lifts FdR's interest in the logistics investment unit to 82%. The company said the transaction 'is the first step' towards into goal of holding 100% of FEL's logistics and light industrials portfolio.

In a statement to announce its first quarter results, the Paris-listed office group also announced it has acquired the Degrémont headquarter in Rueil‐Malmaison for EUR 43 mln including taxes, reflecting a yield of 7.5%. The 13,800-m2 property located in Paris Western Crescent was leased back to the vendor, Suez Environnement's Degrémont subsidiary, which will continue to use it as its headquarters. The company occupies 100% of the asset with a 12-year fixed lease agreement.

FdR, which has a portfolio valued at EUR 8.6 bn at end-March 2011, said its turnover rose by 3.3% to EUR 209.4 mln in the first quarter of 2011, while rental revenues grew by 1% to EUR 123 mln in Q1 2011.