PARIS-French REIT/SIIC Altarea Cogedim has launched the marketing of a major Paris residential and office development, Paris 7 Rive Gauche, on the site of the former Laennec hospital, which dates back to 1632. The project involves the renovation of the 4-hectare site, which originally cost Altarea $1 billion. The building has been unoccupied since 2000 when the hospital moved out.

The listed historical buildings, owned by German insurer Allianz, will be converted into 185,000 square feet of offices, while more recent buildings will be demolished to make way for new residential units. Twelve new residential buildings will be constructed, offering 191 units over 175,000 square feet. There are also plans for 80 social housing units, a student residence, a home for the elderly and 48,000 square feet of shops.

Altarea Cogedim, primarily an owner of shopping centres, has taken 10 years to achieve permission to develop the site, following a series of setbacks. Demolition will start in July, with construction beginning in first quarter 2011, and completion scheduled for 2013. The group said the project will be one of the most important real estate operations for 50 years in the French capital's prestigious 7th arrondissement, and confirms its capacity for projects in all its asset classes - residential, office and retail. Founded in 1994 by Alain Taravella, the group had a portfolio of $2.9 billion at end-2009. It acquired residential property developer Cogedim in 2007, and Cogedim's market share has increased 65% since then.