In 2022, pensions provider Union Mutualiste Retraite (UMR) became a limited company subject to the French supplementary workplace pension regime: fonds de retraite professionelle supplémentaire (FRPS). The restructuring was carried out to integrate France’s largest mutual, VyV Group. UMR now manages two flagship pension schemes, AG and Corem. 

Just over 90% of UMR’s real estate allocation is managed by external managers, using their individual expertise for each different sub-asset class or strategy. The rest is managed directly within UMR, covering investments for which the company possesses internal expertise, generally offices and residential in France.

In recent years, UMR has built a real estate strategy to provide a stable long-term yield and secure invested capital.

This includes:

• Investing in economically and demographically dynamic cities, such as Nantes, Lyon and Paris;
• International diversification, starting with offices in Germany, followed by Italy and the US (via funds of funds), to seize long-term value creation;
• Investing indirectly with pre-eminent managers in specific markets such as warehouses and health establishments, which have shown remarkable resilience during the pandemic;

The growth in working from home has prompted UMR to curb office acquisitions and reinforce its exposure to residential assets. For instance, it created the Coremimmo life annuity fund to purchase retired members’ homes in return for a lifelong income to supplement their pension. The main goal is to enable senior members to live comfortably during retirement.

A wider socially responsible undertaking is to incorporate ESG considerations into UMR’s management processes, with stricter targets than under French law. This includes a climate risk audit for each asset, followed by individual action plans to significantly reduce energy consumption.