French listed retail park specialist Frey is joining forces with Credit Agricole's life insurance unit Predica and Belgium's AG Real Estate (formerly Fortis Real Estate) to launch two retail investment vehicles with a total spending power of EUR 200 mln.

The vehicles, Frey Retail Fund I and II, will make use of 50% of equity and be equally owned by Frey and two OPCI vehicles of Predica and AG Real Estate, managed by Unibiens and Vendôme Capital Partners respectively. Predica will own 50% of Frey Retail Fund I while AG Real Estate is taking a half-share in fund II.

The two funds will target retail assets in operation which offer the potential to add value. Frey will provide asset management and property management services.

'The creation of these funds marks a new stage in the development of Frey. By teaming up with leading financial investors, the company can capture new opportunities to create value and build on its expertise in revitalizing and repositioning retail parks,' said Anthony Frey, CEO of Frey.

Jérôme Grivet, CEO of Crédit Agricole Assurances and Predica, said the operation 'aims to diversify its investments in a prudent manner'.

'This transaction fits perfectly with our strategy to grow significantly in the French market, both as an investor and a developer,' added Xavier Pierlet, head of asset management at AG Real Estate.