French real estate investment trust (REIT) Gecina and real estate group Nexity have signed a partnership agreement to develop 4,000 new rental housing units over the next four years in Paris, the Paris Region and major urban hubs across France.
Under this partnership, a joint co-development company will be set up, with 60% owned by Nexity and 40% by Gecina.
This innovative partnership between two real estate market leaders aims to respond to the need for rental housing, especially in supply-constrained areas, said in the statement.
“This partnership is a response to the economic and societal need to increase housing supply, particularly rental, for people in French cities. Institutional investors are one of the three driving forces behind housing supply, alongside social housing and privately-owned accommodation. It marks a new step forward with Gecina’s ambition to deploy its offering in the rental residential sector. With the creation of this co-development company with Nexity, Gecina will benefit from a powerful and flexible tool to realize its development ambitions, while capitalizing on value-creating investment opportunities, generating scale effects. This agreement will enable us to accelerate the wide-scale deployment of our YouFirst Residence brand for our clients. Gecina’s rental residential strategy will strengthen its resilience, in the more general context of institutional investors returning to this market,” said Méka Brunel, Gecina’s Chief Executive Officer.
Alain Dinin, Nexity’s Chairman and CEO said: “Nexity has organized its services platform to meet the needs of its clients, from individuals to businesses, municipalities and now institutional investors. We are proud of this partnership with Gecina, which marks a turning point on the French real estate landscape. For Nexity, this represents a new area for growing our residential development business, consolidating our production prospects and opening up numerous possibilities for the future. This agreement, in line with the Group’s profitable growth strategy and our societal commitments, will help build sustainable and inclusive cities”.