The fund has been set up in partnership with supermarket group Casino – also the major shareholder behind the Polish developer Mayland - and has already invested $214.2 million in 30 Leader Price stores in southwest France, a Géant hypermarket in Argenteuil, and a shopping arcade and retail park in Castelnaudary which is due to be delivered in early 2012. This initial investment was 50% financed by a loan from BNP Paribas.

Shopping Property Fund 1 is BNP Paribas REIM's third OPCI institutional fund, focused in retail. The group's Jacqueline Faisant said the fund reflects a strategy of products in sectors where it can develop partnerships with major users and benefit investors looking for diversification.

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