French listed office property giant Foncière des Régions has made an offer for its smaller peer Foncière Paris France (FPF) that values FPF at EUR 440 mln excluding assumed debt. In a statement on Wednesday, Metz-based FdR said it has already signed an agreement with four shareholder groups representing around 37% of FPF and plans to offer the same share swap terms to buy the rest of the company in a second stage.

FPF shareholders Covéa, Predica, Holding Wilson 250 and the FPF management have already decided to accept FdR's offer and the operation is planned to take place in September.

'This combination proposal will allow FPF to pursue a certain number of development projects currently under review in the markets which we favour, particularly in Paris and in Saint-Denis,' said FPF's chairman Jean Paul Dumortier.

FPF’s portfolio is valued at about EUR 700 mln, mostly in the greater Paris region. In addition, the company has a development pipeline valued at EUR 170 mln.

'This operation is in line with our strategy to become Europe's largest office property owner,' said FdR's Chief Executive Christophe Kullmann.

On completion, FdR will control a portfolio valued at EUR 9.6 bn, 52% of which consists of offices in France.