The fund has been set up in partnership with supermarket groupCasino – also the major shareholder behind the Polish developerMayland - and has already invested $214.2 million in 30 LeaderPrice stores in southwest France, a Géant hypermarket inArgenteuil, and a shopping arcade and retail park in Castelnaudarywhich is due to be delivered in early 2012. This initial investmentwas 50% financed by a loan from BNP Paribas.

Shopping Property Fund 1 is BNP Paribas REIM's third OPCIinstitutional fund, focused in retail. The group's JacquelineFaisant said the fund reflects a strategy of products in sectorswhere it can develop partnerships with major users and benefitinvestors looking for diversification.

"The retail sector portfolio managed by BNP Paribas Real EstateInvestment Management's regulated funds now represents almost €30mof rental income," she said. Casino is a shareholder in the newfund and its managing director for real estate Jacques Ehrmann saidthe move forms part of the group's strategy of outsourcing propertyassets to increase financial flexibility.