Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

PARIS-French REIT Foncière des Régions has added five Paris office assets worth €267 million to its portfolio in a stock and warrants-only deal with insurance groups Groupama and Predica, bringing the former for the first time into its senior shareholder base. The group will subsequently offer existing shareholders warrants for €200 million in equity at similar terms.

The deal, which will be submitted for approval by shareholders on 15 December, will be paid by the issue of 3.9 million new FdR shares, of which 1.9m will be issued at a price of €70 for Predica, and 2 million at €65 for Groupama. The deal will thus simultaneously boost FdR equity by €267 million. In addition, however, the group will offer bonus subscription rights to current shareholders to subscribe up to €200 million new shares at similar terms.

"This transaction will let Foncière des Régions grow the quality of its assets as well as boost shareholders' equity at an opportune time in the real estate cycle," commented FdR CEO Christophe Kullmann.