The Parisian property sector may find itself the victim of “cannibalisation”, if a new round of closer links between listed property companies is established.
In her annual report, Laetitia d’Epremesnil of KBC Securities in Immobook claims that the ever diminishing sector could be swallowed up completely, with only ten or so property company shares trading in Paris as a result of this process.
However, she also observes that acquisitions of fellow companies not listed on the stock exchange could boost the growth of French property companies, while new entries to the stock exchange would present even more favourable alternatives.
Immeubles de France et Fonciere Lyonnaise, Gecina, Simco, Klépierre and Unibail are named as some of the more vulnerable companies, while Kauffman & Broad is preparing to launch itself onto the stock market in 2000. The third largest property company in Europe has a stock market value of €2.4 (FFr16bn).
L’Echo, 08 December 1999, page 9
