REAL ESTATE - French property firm Foncia says it is already close to reaching its 15% growth target for 2006 thanks to an aggressive acquisition strategy that has seen it swallow up smaller French rivals.
The residential real estate manager posted above-target organic growth of 8% and acquisition growth of 13%. This year its overall growth target is 15%. Having already secured 10% through external growth for 2006, the firm needs just 5% to meet its year-end target.
Foncia aims to acquire at least 40 companies annually. Finance director Olivier Froc said: 鈥淭here are 10,000 smaller property companies in France so there is no shortage of acquisition targets. We buy units and in doing so we buy market share.鈥�
Last year, acquisition finance came largely from cashflow, with just 16% covered by borrowings.
As it released its 2005 results the company also announced that it is to revamp its governance in order to ensure a smooth succession once 58-year-old founder Jacky Lorenzetti steps down. Under the new structure, Lorenzetti will chair an executive board and managing director Francois Lesieur will chair a separate supervisory board.
