Information on the Target

As of July 18, 2025, CCF has announced the signing of a memorandum of understanding with HSBC Continental Europe for the acquisition of a portfolio of real estate loans in collaboration with Rothesay, a prominent player in retirement insurance in the United Kingdom. This strategic move aligns with CCF's revitalization efforts over the past few months aimed at consolidating its assets, strengthening its positions in key markets, and accelerating growth.

The portfolio in question, which consists of real estate loans granted to CCF clients, totals €6.7 billion. This acquisition is expected to not only enhance CCF's profitability but also enable it to expedite the group’s transformation plan without relying on external financing.

Industry Overview in the Target’s Specific Country

The real estate industry in France has witnessed significant dynamics in recent years, influenced by varying market conditions and governmental policies. With a strong demand for housing coupled with shifting demographics, the industry remains a critical driver of the French economy. Investors and institutions in France have adapted to these changes by diversifying their portfolios and seeking long-term opportunities.

Moreover, the regulatory landscape has evolved, allowing for more innovative financing models and investment structures. The government has implemented measures to facilitate housing access, particularly for first-time buyers, which spurred growth in the real estate sector. This nurturing environment has attracted both domestic and international investors.

Notably, France's transparent legal framework and established property rights contribute to its attractiveness as an investment destination. Institutional investors have significantly increased their presence in the market, further stabilizing real estate values and fostering growth.

As a result, the overall outlook for the real estate industry in France remains positive, with expectations of continued investment and development in the coming years. CCF’s acquisition is timely, considering the healthy state of the real estate market and the potential for immediate returns.

The Rationale Behind the Deal

This targeted acquisition is a calculated step for CCF, demonstrating its commitment to enhancing profitability while maintaining strong relationships with existing clients. By acquiring this portfolio of loans, CCF aims to accelerate its strategic transformation plan and solidify its standing in the market without the need for external financing.

Furthermore, the operation is designed to be seamless for affected clients, as they will continue to work with their current advisors, ensuring no disruptions to their service experience.

Information about the Investor

CCF, established in 1917, is a French retail bank that offers personalized banking solutions to both individuals and professionals. With a strong emphasis on customer service, expertise, and operational simplicity, CCF has positioned itself as a reliable banking partner with a comprehensive network of agencies throughout France.

As a century-old institution, CCF is committed to adapting to market changes and seizing growth opportunities. Its strategic acquisitions reflect a strong belief in sustainable growth and financial stability.

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In our expert opinion, this acquisition by CCF is a sound investment that aligns well with the current trends in the French real estate market. The decision to acquire a substantial portfolio of real estate loans suggests a strong confidence in the underlying assets and their future profitability.

Moreover, by ensuring that existing client relationships remain unchanged throughout the process, CCF demonstrates its commitment to customer satisfaction, which is a vital component of long-term success in the banking sector.

The acquisition not only represents immediate revenue potential but also positions CCF favorably for future growth. The combination of a strengthening real estate market and CCF’s strategic initiatives suggests that this move can significantly enhance the group’s operational performance.

Overall, we believe that CCF’s acquisition will likely result in a positive impact on its profitability, client relationships, and market standing, making it a prudent step toward sustainable growth.

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