French listed group Gecina has unveiled plans to redevelop two buildings into student residences as part of its strategy to grow in this alternative property segment.
French listed group Gecina has unveiled plans to redevelop two buildings into student residences as part of its strategy to grow in this alternative property segment.
The Paris-based company said the projects, representing a combined investment of EUR 23 mln and a target net yield of 6.5%, involve the redevelopment of an office in Paris and an acquisition in Saint-Denis. In the French capital, Gecina has obtained an unrestricted building permit to redevelop an office building from its Paris-based holdings into a student residence in the 13th arrondissement. The site will house 60 student accommodation units on completion in 2013.
In Saint-Denis, the group signed a contract in May for the acquisition of the Carrefour Pleyel student residence, which will offer 183 apartments and 41 parking spaces, with delivery scheduled for the second quarter of 2014.
The two operations are part of the company's plan to increase the share of student housing in its portfolio from 1% at year-end 2011 to 5% over the medium term. The assets are managed in-house by the dedicated subsidiary Campuséa.
