Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, hired Ampere Gestion to manage a French residential real estate portfolio, a spokeswoman said.
Ampere Gestion will set up a portfolio, initially investing €200 million ($248 million) in the first three years. In addition, La Francaise Group and Swiss Life REIM were hired on a standby basis as ERAFP targets an allocation to real estate of 12.5%, up from the current 10%.
The €23 billion public pension fund for civil servants intends to increase the supply of affordable housing for employees of local and regional governments and hospitals in all parts of the country where rents are high relative to incomes, it said in a news release.
"Awarding this contract gives us an opportunity to go a step further in (reserving housing) for civil servants, along the lines of the agreement signed in January 2017 between ERAFP, the French Directorate-General for Government Administration and the Civil Service and CDC Habitat," said Philippe Desfosses, CEO of ERAFP, in the news release.
An RFP was issued in May.