FREY is joining forces with PREDICA and AG REAL ESTATE to create two vehicles with a total investment capacity of €200 million FREY RETAIL FUND 1 and FREY RETAIL FUND 2

November 15 2011

FREY, in partnership with PREDICA and AG REAL ESTATE, announces the launch of two new investment vehicles: FREY RETAIL FUND 1 and FREY RETAIL FUND 2, endowed with a total investment capacity of €200 million, half of which will be funded by equity capital.

FREY, a major player in the market of new generation retail parks, is joining forces equally with two key players in real estate investment: PREDICA, the top life bank insurer in France and a subsidiary of Crédit Agricole Assurances, and AG REAL ESTATE, the top real estate group in Belgium, a subsidiary of AG Insurance. These two investors will distribute regulated French products (called OPCIs, or real estate investment funds) managed respectively by Unibiens (a subsidiary of Crédit Agricole Immobilier) and Vendôme Capital Partners.

FREY RETAIL FUND 1 and FREY RETAIL FUND 2 will target commercial operating assets located on the outskirts of urban areas, which represent great potential for value creation. This strategy relies on the attractiveness of the retail park format and FREY’s experience in new generation peri-urban commercial real estate. The combination of competitive rents and a revival of proposed commercial areas effectively contributes to bringing about changes in the commercial areas of the stores already present. It also attracts new ones, increasing the spread of these zones.

AG REAL ESTATE and PREDICA have partnered with FREY to form FREY RETAIL FUND 1 (created as an SAS, or limited company) and FREY RETAIL FUND 2 (created as an SCI, or real estate company). All three sit on the Strategic Committee of these vehicles, of which FREY oversees the chairmanship and management respectively. FREY will supply these two vehicles with its expertise and know-how in the area of retail parks, taking care of case origination (sourcing) assignments, asset management and property management. FREY already has at its disposal a defined deal flow of assets that are potential target investments for the vehicles. This operation is part of FREY’s investment strategy and strengthens its position as a valuable player in the retail park sector while allowing its investments to be pooled.

Antoine FREY, Chairman of the Board of Directors at FREY, says, ‘The creation of FREY RETAIL FUND marks a new stage in FREY’s development. Partnering with key financial investors allows our company to seize new opportunities for value creation and make the most of its know-how in redynamisation and repositioning of retail parks. The confidence that PREDICA and AG REAL ESTATE have placed in us also accentuates the quality of the expertise of FREY and its ability to initiate operations throughout France.’

Jérôme Grivet, Chief Executive Officer of Crédit Agricole Assurances and PREDICA, says, ‘This partnership lies fully within the investment strategy of PREDICA, a key institutional investor. It aims to diversify our investments in a prudent manner alongside quality partners such as FREY and AG REAL ESTATE, and to strengthen our contribution to real estate financing.’

Xavier Pierlet, Head of Asset Management at AG REAL ESTATE: ‘This operation coincides perfectly with AG REAL ESTATE’s wish to significantly increase its presence in the French market in the areas of investment, property development and parking. We are especially glad to partner with FREY and PREDICA to this end in the context of acquisition of commercial assets, which we value highly.’