AMPERE Gestion has raised over €900 million in the first round of funding for the second intermediate housing fund (Fonds de Logement Intermédiaire 2 – FLI 2)
This was the largest amount raised in the European residential property sector in 2018.
FLI 2 brings together 15 institutional investors, half of whom had already invested in FLI 1, and this new round of funding has also provided an opportunity to get major foreign investors on board. A second round in 2019 will enable FLI 2 to finance the production of over 11,000 units of – mostly intermediate – housing in major French cities.
FLI 2 will take over where the first intermediate housing fund (FLI 1) left off. FLI 1 was launched in 2014 with an investment capacity of €1.7 billion, corresponding to 10,000 units of intermediate housing. This amount has now been invested and the fund has met all of its objectives in terms of location quality, yield and financial performance.
The success of FLI 1 and of this round of funding is a testimony to renewed investor confidence in the French residential property sector. It also highlights CDC Habitat’s ability to source large volumes of residential property assets throughout France and provide its partners with industrialised platform management facilities.
A strategy underpinned by social utility
As part of a social impact investment approach, the fund has ambitious SRI goals that will involve rating each asset according to environmental and social criteria. The aim is to continue to boost the supply of rental solutions in major cities by funding a portfolio of affordable, energy-efficient properties.