Amundi aims to strengthen its position in the real asset space with the deal.

French asset managers Amundi and Crédit Agricole Immobilier are merging their respective real estate subsidiaries, Amundi Immobilier and CA Immobilier Investors.

Amundi Immobilier managed more than €12 billion ($13.5 billion) of assets as at the end of 2015, of which around 60 per cent was managed for retail customers and 40 per cent for institutional clients. Amundi said it is the leader in France in the retail market, with 15 per cent market share in terms of assets under management and 38 per cent market share in inflows. 

CAII had almost €5 billion in assets under management at end-2015, mainly invested in office and commercial property, on behalf of institutional clients.

The deal, which aims to create a real estate investment player in the European top five, will involve Crédit Agricole Immobilier contributing CAII shares to Amundi in return for Amundi shares. Based on a valuation of €29.3 million for CAII and a valuation of €43 per Amundi share, 680,232 Amundi shares will be issued for the benefit of Crédit Agricole Immobilier, representing 0.4 per cent of Amundi’s capital. The transaction is expected to have a neutral impact on Amundi’s net earnings per share in 2016.