Investment firm AMPERE Gestion tackles rental property scarcity by introducing third investment fund
In response to the growing housing crisis in urban areas, particularly in major cities across France, AMPERE Gestion has raised €325 million for its third intermediate housing fund, Fonds de Logement Intermédiaire III (FLI III). This fund aims to alleviate the rental property gap by providing affordable yet quality rental units for moderate-income households.
FLI III is designed to stimulate sustainable urban living environments and play a significant role in urban social policy. By financing the development and management of intermediate rental housing, AMPERE Gestion aids in enhancing social diversity and accessibility within urban communities. This approach supports social inclusion by enabling moderate-income families to access housing that meets their needs without resorting to more precarious or distant options.
The fund targets urban zones where there is a gap in rental accommodation, focusing on developing rental accommodation priced between social housing and the open market, typically around 10% to 15% below standard market rates. FLI III will develop intermediate rental housing, including student accommodation and co-living developments.
The social impact of FLI III lies in its contribution to reducing the rental property gap, which is crucial in densely populated cities facing housing affordability challenges. The fund will be subject to a robust impact assessment framework, assessing tenant profiles and accessibility for target populations, as well as monitoring metrics throughout the investment lifecycle to ensure accountability and transparency.
The metrics will include key indicators such as a building's energy performance, carbon footprint, and the number of intermediate housing developed. Additionally, the fund team will measure rent affordability levels relative to local income and the savings made compared to free market housing.
France is facing acute pressure in the rental market due to a combination of factors including demographic growth, an increase in single-person households, strict planning regulations, and a societal shift from ownership to renting. AMPERE Gestion, a French real estate investment management company, has raised over €10bn in assets under management, including more than €4.5 billion allocated specifically to intermediate housing.
The FLI III is an Article 9 SFDR fund, reflecting its commitment to promoting environmental, social, and governance (ESG) factors in its investments. AMPERE Gestion structures and operates dedicated residential real estate funds with a strong social impact on behalf of French and European institutional investors.
By the end of 2026, the fund aims to reach its target size and complete a final close. FLI III is a strategic tool in balancing economic viability with social responsibility in urban housing development, bridging the housing deficit for populations that are often underserved by traditional social housing programs or the free market.
- AMPERE Gestion's Fonds de Logement Intermédiaire III (FLI III), with €325 million in development finance, aims to positively impact social diversity and accessibility within urban communities by financing the development and management of intermediate rental housing.
- In alignment with its commitment to ESG factors, FLI III, an Article 9 SFDR fund, focuses on developing real-estate projects including student accommodation and co-living developments, with a goal of addressing the rental property gap in densely populated cities.
- By measuring energy performance, carbon footprint, and rent affordability levels relative to local income, FLI III's robust impact assessment framework ensures that its investments in energy transition contribute towards affordable, sustainable housing solutions for moderate-income families, aligning economic viability with social responsibility in urban development.
