French property company Icade said that it is planning to re-invest the proceeds from the sale of its EUR 2 bn housing portfolio into commercial property assets 'generating immediate secure cash flows'.

The French SIIC, which two years ago announced plans to re-focus its business on commercial property, said it will concentrate on offices in the Paris region, clinic buildings in France and shopping centres in the Paris region and the major regional metropolitan areas.

'Icade will pursue its commercial property strategy in the coming years. Now clearly positioned as a leading property investment company in the French market, Icade intends to take full advantage of its specific business model to deliver significant growth in cash flows and in properties values to its shareholders,' it said in a statement.

The company intends to invest around EUR 900 mln in the development of commercial real estate projects scheduled for completion in the next five years. 'The recovery of the development market will allow Icade's development division to act as 'income accelerator' in a more favorable period of the cycle,' it said.

In 2010, the company completed the sale of 23,358 housing units generating proceeds of EUR 1.15 bn and finalised the takeover of Compagnie La Lucette from Morgan Stanley.

Its net profit amounted to EUR 1.2 bn in 2010, an increase of 131% from the EUR 527 mln posted in the same period in 2009. Icade's portfolio was valued at EUR 6.12 bn at year-end 2010, an increase of 5.6% on the year before.