Fund management company, AMPERE Gestion, takes action to ease shortage of rental housing through the introduction of their third investment fund.
In the heart of France, a significant shift is underway in the housing market. AMPERE Gestion, a leading French real estate investment management company, has raised €325m for its third fund targeting intermediate housing, named Fonds de Logement Intermédiaire III (FLI III).
The fund's primary goal is to address the rental property gap in France by targeting the intermediate rental market, which lies between social housing and the private market. This social impact fund aims to provide affordable, quality rental housing for middle-income households who do not qualify for social housing but cannot afford private market rents.
FLI III's impact assessment framework includes key indicators such as a building's energy performance, carbon footprint, the number of intermediate housing developed, and households supported. The fund team will also assess tenant profiles and accessibility for target populations, measuring rent affordability levels relative to local income and the savings made compared to free market housing.
The target market for FLI III primarily includes middle-income earners, young working professionals, and families who fall outside traditional social housing eligibility yet face difficulty entering the private rental market due to high rent costs. By focusing on "logement intermédiaire" (intermediate housing), the fund supports a segment critical to social cohesion and economic mobility in France.
France is facing acute pressure in the rental market due to factors such as demographic growth, an increase in single-person households, strict planning regulations limiting new housing, and a societal shift from ownership to renting. This pressure is particularly evident in major cities, where supply is diminishing while demand is rising. As a result, many middle-income earners, including key workers and students, are being excluded from both social and market-rate housing.
To combat this issue, FLI III aims to boost the production of intermediate rental housing for families, student accommodation, and co-living developments. Co-living developments are housing designed for individual renters who lease a private bedroom while sharing communal spaces.
As an Article 9 SFDR fund, FLI III is subject to a robust impact assessment framework, ensuring accountability and transparency throughout the investment lifecycle. AMPERE Gestion, known for managing impact investment vehicles that address social challenges such as housing gaps in France, often in partnership with entities like CDC Habitat, is well-positioned to deliver on these promises.
With a target size of roughly two-thirds already reached and a final close expected by the end of 2026, FLI III is poised to make a significant impact in France's rental market. By addressing the rental property gap and providing affordable housing options for those in need, FLI III will contribute to reducing housing shortages and improving access to decent housing for this underserved segment, easing rental pressure on both social and private sectors.
- By focusing on developing intermediate housing, including student accommodation and co-living developments, FLI III, a social impact fund, aims to support a critical segment for social cohesion and economic mobility in France, addressing the rental property gap and providing affordable housing options.
- As a development finance fund, FLI III's focus on finance and business strategies is vital in boosting the production of intermediate rental housing, contributing to reducing housing shortages and improving access to decent housing for the underserved segment, thus easing rental pressure on both social and private sectors in France.
- In the context of energy transition, FLI III's impact assessment framework includes key indicators such as a building's energy performance and carbon footprint, showcasing the fund's commitment to sustainable and green investing in the real-estate sector.
