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DUSSELDORF-Groupe Fonciere des Regions of Paris entered the property market in Germany with the acquisition of interests in three property companies that own a combined 5,300 housing units in this city. Fonciere des Regions purchased the interests from Immeo, a subsidiary of a fund jointly managed by Morgan Stanley Real Estate and Corpus.

Originally built for employees of the steel group Thyssen, Fonciere des Regions officials say the properties are compatible with its experience in managing assets of industrial origin. The percentage interest acquired and acquisition price were not released. Fonciere des Regions estimates the total value of the assets at euro 275 million and says they will generate annual rental revenue of euro 17 million.

Fonciere des Regions officials say the residential sector in Germany is a secure gateway to the country due to steady, index-linked revenues. To manage the investment, Fonciere des Regions has created a German subsidiary that is being capitalized with euro 80 million. Shares in the subsidiary may be offered to other investors, but the plan is for Fonciere des Regions to remain the majority shareholder. Fonciere des Regions is organizing an information meeting on Nov. 28.

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