Real Estate news of the week in France (19-25 June)

Brainsre compiles below the weekly news highlights.

Market – Residential property: insurers can withstand a moderate downturn in the sector, according to Fitch

• Insurance companies’ ratings are expected to withstand a moderate decline in commercial real estate values, but individual issuers with significant exposures would face stronger pressure during a systemic crisis.
• European insurers’ direct exposure to commercial real estate represents 4.1% of their total assets, with Swiss, Austrian, and Belgian insurers being more vulnerable to valuation declines than the UK, the Netherlands, and Germany.
• While some insurers may overstate the value of their real estate portfolios compared to their declared assets, they are not facing significant liquidity pressures and are unlikely to sell properties at heavily discounted prices.

Hotel – B&B Hotels passes the 700 hotels mark in its network and confirms its growth ambitions

• B&B Hotels continues its growth in 16 countries, aiming to reach 3,000 establishments by 2030, with openings planned in the UK, Denmark, and the US.
• The company focuses on sustainability and responsible travel, implementing actions to improve the sustainability of its operations and aiming to become a leader in eco-friendly budget hotels.
• B&B Hotels emphasizes reducing its carbon footprint, using innovative construction methods and aiming for plastic-free hotels by the end of 2023. They have also developed a sustainability certification system for the hotel and restaurant sector in collaboration with Socotec.

Office – La française real estate managers has acquired off-market from Lazard Group Real Estate a new office building

• The R+8 building, part of the LINK-IT program, was delivered in February 2023 and is located in a dynamic business district near public transportation in Porte de Clichy, Paris.
• The building meets the construction standards set by La Française REM and offers various user services, including virtual concierge, lockers, connected services, showers, dining facilities, relaxation areas, and bike storage.
• The entire building is leased to L’Oréal and was acquired by the Société Civile de Placement Immobilier Epargne Foncière on behalf of Lazard Group Real Estate. This transaction completes the sale of the entire LINK-IT operation in Clichy, consisting of two buildings totaling 8,720 m2.