Alternative money manager Tikehau Capital has entered into exclusive negotiations to acquire French real estate firm Sofidy.
The manager, which has €14.8 billion ($17.2 billion) in assets under management, said in a statement on its website that the deal would accelerate its development in real estate investing. The firm currently manages €2.6 billion in real estate assets, and Sofidy would add €4.8 billion to this total.
Any deal would also help the firm achieve its target of €20 billion in AUM by the end of 2018, which it had previously targeted for 2020, said the release.
Sofidy was founded in 1987 and focuses mainly on retail real estate and offices.
"We have high ambitions to grow in the real estate sector, and we are delighted to not only broaden our expertise in this area, but above all to welcome Sofidy and its teams alongside us," said Mathieu Chabran, co-founder of Tikehau Capital, in the statement.
The deal would see Paris-based Tikehau Capital hold more than 90% of Sofidy's capital. The release said the valuation for 100% of the shares in Sofidy amounted to €220 million. Further details on this were not provided.
A spokesman said the acquisition is subject to an information consultation with Sofidy's staff representative body. Once agreed, the deal will be subject to approval by the Autorite des Marches Financiers, France's financial watchdog, and competition authorities. The deal is set to close in the fourth quarter, the spokesman said.