Praemia REIM Group Secures €60 Million Preferred Equity From Altarea, Ending Years-Long Legal Dispute

PARIS, Aug. 26, 2026 — Praemia REIM Group and Altarea announced Tuesday a comprehensive settlement agreement ending an ongoing dispute before the Paris Court of Appeal, pairing a €10 million cash indemnity with a €60 million preferred equity subscription that reinforces the French real estate asset manager's balance sheet without altering its strategic direction.

The joint statement, issued Aug. 26, said the accord was reached through conventional mediation, with both parties expressing a shared intent to pursue a "constructive, balanced and secure" resolution. Neither side admits fault or liability under the terms of the agreement, and all pending proceedings and mutual damage claims have been withdrawn. Both parties have also committed not to initiate new legal actions arising from the facts underlying the original dispute.

Settlement Terms: €10 Million Indemnity and €60 Million Equity Injection

Under the financial terms, Altarea paid a €10 million transactional indemnity to the manager-shareholders concerned. Separately, as part of Praemia's strategic roadmap, Altarea subscribed €60 million in non-voting preferred shares. Those shares carry preferential liquidity rights — granting Altarea priority in exit or liquidity events — as well as preciputary dividends, meaning dividends are paid to Altarea ahead of ordinary shareholders.

Praemia stated explicitly that the equity injection does not modify the group's strategic orientations. The transaction is structured as a financial stake rather than a controlling interest, with the preferred shares carrying no voting rights.

Background: A Failed Combination and Multi-Year Litigation

The dispute traces to a planned combination between Altarea and the then-Primonial group that ultimately collapsed, triggering litigation over the terms and aftermath of that deal. A specialized economic court in Paris issued a judgment on Feb. 4, 2025, which Altarea subsequently appealed to the Cour d'appel de Paris. The August 2026 settlement resolves the matter at the appellate stage.

The mutual decision to attribute no fault to either party is notable in a high-profile corporate dispute of this duration, reflecting a shared interest in limiting reputational exposure as both firms pursue their respective growth strategies.

Praemia REIM Group: Scale, Rebranding, and the Case for Equity Reinforcement

Praemia REIM Group — formerly Primonial REIM — rebranded following the sale of Primonial Ingénierie & Développement to Crystal, which transferred the Primonial brand. The group now operates as a fully independent, pure-play real estate asset management platform in Europe, with more than €38 billion of assets under management. It holds a particularly strong position in healthcare real estate, where it manages over €18 billion of AUM, making it one of Europe's largest managers in that segment.

The equity reinforcement comes at a moment of significant stress in French commercial real estate markets. Investment volumes in France fell to a 10-year low in the first quarter of 2026, with just €2.5 billion deployed — a 37% decline year-on-year versus the first quarter of 2025. Prime yields have widened across asset classes: Paris CBD offices stood at approximately 4.25% in Q1 2026, prime high-street retail at 4.50%, and logistics at around 5.00%, all above 2024 levels. Office vacancy in France reached a 10-year high in 2025, with demand increasingly concentrated in well-connected, high-quality stock.

In that environment, a large asset manager faces pressure to maintain strong equity to support funds through valuation resets, refinancing risk, and potential loan-to-value covenant stress. The €60 million preferred equity subscription provides Praemia with additional balance-sheet capacity as the market navigates a higher-rate, lower-volume cycle.

Altarea's Role and the Outlook for Both Firms

Altarea, listed on Compartment A of Euronext Paris, describes itself as France's leader in low-carbon urban transformation, offering a full range of real estate products and services across development, commercialization, and management. The preferred equity stake in Praemia represents a financial partnership with enhanced economic rights rather than a strategic realignment for either group.

Both Altarea and Praemia's shareholders and management welcomed the agreement in their joint statement, describing it as an opportunity to "turn the page" on the dispute and open a new chapter "in a spirit of appeasement." With the litigation formally closed and fresh capital committed, Praemia REIM Group enters the second half of 2026 with a strengthened equity position as it pursues its independent asset management strategy across European real estate markets.

Sources

Praemia REIM Group / Altarea Joint Press Release, Aug. 26, 2026