Gecina and Nexity Sign an Innovative Partnership Agreement to Address the Chronic Shortage of Housing in France
Gecina (Paris:GFC) and Nexity have signed a partnership agreement with a view to developing 4,000 new housing units over four years in Paris, the Paris Region and major urban hubs across France on behalf of Gecina’s residential subsidiary.
This innovative partnership between two real estate market leaders aims to respond to the need for rental housing, especially in supply-constrained areas. It confirms Gecina’s ambition to accelerate its residential subsidiary’s development, while consolidating Nexity’s leading position and commitment to offering housing for as many people as possible. The operations developed, focused on low-carbon construction, particularly through the use of timber and the circular economy, will make it possible to offer a quality experience in sustainable living spaces for clients of Gecina’s YouFirst Residence brand.
Under this partnership, a joint co-development company will be set up, with 60% owned by Nexity and 40% by Gecina. By identifying opportunities and launching operations in line with the ambitions and requirements of both partners, each group will be able to further strengthen its expertise, giving Gecina the possibility to get involved from the development stage alongside Nexity, while offering the opportunity for Nexity to develop a first ‘build to rent’ portfolio in the freely available housing sector, through this alliance with a leading real estate group. The buildings developed in this way will be acquired by Gecina’s residential subsidiary.
Méka Brunel, Gecina’s Chief Executive Officer: “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”.