FINANCE

The CDC sells 7% of its stake in Icade The French Consignments and Loans Fund (CDC) has sold more that 6.5 million Icade shares, which is nearly 7% of its competitive real estate subsidiary’s capital and voting rights. This transaction was carried out by selling 3% of the capital through accelerated book-building, building a book from institutional investors at the price of €41.50 per share. The balance was sold in a block trade to Paris North Real Estate Fund Limited for 3.47% of the capital in return for €135 million and for 0.51% of the capital at Forum European Realty Income GP for €20 million. After this transaction, the CDC retained the majority of Icade, holding 64.7% of the capital and voting rights of its subsidiary. The private sale was carried out by Société Générale Corporate & Investment Banking.

Foncia Pierre Rendement raises €13.5 million On April 3, 2006 Foncia Pierre Gestion, a subsidiary of the Foncia Group specialized in real estate investment trust management, launched a 3rd capital increase for Foncia Pierre Rendement, a retail REIT. All 20,000 shares put on the market were purchased at a unit price of €675, raising a total of €13.5 million, allowing for the expected transaction closing. Furthermore, Foncia is aiming to have Terreïs, its property management company specialized in commercial properties, listed on the stock exchange by next December. Its net asset value is €75 million.

PROPERTY

Meyer Bergman plans to bring SQY West into its new listed property investment company The Meyer Bergman property fund, via its subsidiary MB Retail, submitted a takeover bid for the balance of shares for the company "Chaîne et trame." It already holds 92% following a block trade from the founders of the listed company. The offeror says, "Chaîne et Trame uses its equity to acquire, build, hold, and manage real estate for the purpose of leasing. It will invest mainly in shopping centers and shopping center projects and will be located either in France or in the European Union." In the short term, Meyer Bergman plans to bring 100% of SQY Ouest’s shares into Chaîne et Trame. SQY Ouest holds the shopping center of the same name in Saint-Quentin-en-Yvelines (Yvelines). The shopping center is developing 33,000 m² of retail space and recreational facilities as well as 1,100 parking spaces.

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INVESTMENT

Prefimco Sets Up Shop in Continental Europe The Prefimco group (Private Real Estate Finance and Investment Management Company), a new pan-European property investor based in Brussels, has just been created by Raymond Mould, Pierre Pozzi, John Defauw and Gregory Martin, with the support of the General Electric Pension Trust. Its role, among others, is to invest via its Prefimco Investment Management subsidiary as "principal" in joint ventures with other property operators, to purchase existing property portfolios concealing currently underexploited major potential, and to develop these assets in continental Europe. The group is mainly targeting Belgium, Luxembourg, France, Italy, Spain and the Netherlands. Prefimco Holding intends to invest €300m before the end of 2007.

PROPERTY

Transimmeubles Opens its Capital Winch Capital, a fund managed by Edmond de Rothschild Investment Partners (LCF Rothschild group) and Naxicap (Natexis Banques Populaires) group, has taken over a minority share of Transimmeubles, the group led by Laurent Dumas. The Racine law firm supported Edmond de Rothschild Investment Partners in this operation. Transimmeubles has more than 150,000 m² currently under development, including more than 100,000 m² of business property. Along with Cargill Value Investment, the developer recently won in a call for bids by the city of Saint-Denis to build 22,000 m² of office space in the Landy development zone.

CONSULTING

CBRE Opens in Dijon CB Richard Ellis strengthens its position in the region by opening an agency in Dijon, jointly managed by Patrick Mestanier and Patrick Peyrussie. The consultant now serves 32 large regional centers in France.

BUSINESS

ING Receives its CDEC for the Champs de Mars Operation The "Champs de Mars" shopping mall project in Saint-Brieuc (Côtes d'Armor), executed by ING Real Estate Development and Spie Batignolles Immobilier, has just received its CDEC for a 8,359 m² sales floor, two weeks after the announcement that work scheduled for January 2007 had begun. The redeveloped "Champs de Mars" is expected to be completed in late 2008.

Locindus a Partner in Developing Le Ruban Bleu in Saint Nazaire Locindus was chosen to support Apsys and its partner Foncière Euris in the context of long term financing to develop Le Ruban Bleu shopping mall in downtown Saint-Nazaire. This mall, which is scheduled to open in 2008, will cover 18,000 m² GLA.

BUSINESS CENTER

Regus Opens a New Business Center in La Madeleine Regus is opening a 29th business center in France, with the leasing of the whole of 18 rue Pasquier close to La Madeleine (Paris 8th arrondissement). This "art deco" style town house, owned by Aviva, provides 1,400 m² of offices, entirely renovated by the lessor and air-conditioned, allowing the provision of 110 work stations and 4 meeting rooms. The rental amount has not been stated. DTZ advised the lessor and the tenant in this transaction.

PPP

Ministry of Justice Signs a €155m PPP to Develop Three Prisons Parisian office Allen & Overy LLP advised AMOTMJ (the Ministry of Justice works authority) in signing the second public-private partnership (PPP) contract entered into by the government to develop three penitentiary establishments. The contract is for an investment of approximately €155m. It was signed with a group composed of the Bouygues group, Dexia Crédit Local, and Royal Bank of Scotland, and covers the design, construction, financing, maintenance, and upkeep of the three prisons, which will be delivered on a rolling basis starting in spring of 2009.

INTERNET

Empruntis.com Opens Its Capital to 3i Empruntis.com, an independent site distributing financial products to individuals over the internet, is opening up 40% of its capital to 3i, which is investing €32m. Created in 2000 by Vincent Lemaire, Geoffroy Bragadir, and Yann Djenderedjan, Empruntis.com promotes itself as the leader in credit over the internet, with more than 80,000 requests each month. The operation, which was organized by Close Brothers, was carried out by 3i in less than 4 months.

Seloger.com Enters the Stock Market SeLoger.com, number one in France for online real estate transactions, has announced the registration of its voucher with the AMF as part of its plans to move toward an IPO. The base body of shareholders in SeLoger.com comprises mainly the site's management and founders (majority), as well as funds 3i and Europatweb. SeLoger.com had revenues of €24.6m in 2005, compared with €16.7m in 2004, representing a 47.1% and €16.8m increase in the first half of 2006, versus €11.3m in the first half of 2005 ( 47,7%). The site is projected to enter the stock market by the end of the year.

SERVICES

Adéquation Aims at €25m in Revenue Lyonnais group Adéquation, bringing together service activities for real estate professionals, announced a consolidated revenue figure of €12m for 2005. Co-founder Renaud Dufer emphasized that there is "a time to invest, and that's what we're doing now, and a time for the return on investment. We have set the goal of €20 to 25m in revenue for market activity between now and 2009, while still focusing on high profitability in our own invested funds."

CONSTRUCTION

Socotec Offers an "Environmental Construction Quality" Service Socotec is launching an "environmental construction quality" service to take into account the requirements and constraints of its clients "in terms of ecoconstruction, ecomanagement, comfort, and health."