A vehicle for Swiss pension funds has entered the French real estate market through the joint venture acquisition of an office building in the 13th district of Paris.
A vehicle for Swiss pension funds has entered the French real estate market through the joint venture acquisition of an office building in the 13th district of Paris.
Immobilien Europa Direkt worked together with a French insurer to buy the Chevaleret office property, near the Paris Rive Gauche development areas.
Chevaleret comprises 23,000 m2 over nine storeys, and is undergoing a complete refurbishment. The work will be completed at end-2015. The total investment volume will be €120 mln. The property is 65% pre-let to a major tenant on the basis of a 9 year-lease.
Europa Direkt is an open ended euro-denominated fund launched by Zurich Investment Foundation for Swiss pension funds. Schroder Property Investment Management acted for the fund in its first acquisition in France. Its investment strategy is focused on providing investors with a diversified portfolio of commercial real estate in the main western European markets.
Tony Smedley, head of continental European investment at Schroder Property, commented: 'This represents a significant step forward for Immobilien Europa Direkt. The property fundamentals are excellent and the return profile very attractive. We like the dynamics of the Paris office market and this property is very accretive to our pan-European portfolio.'
