La Française and Seoul-based Hyundai Investments have partnered to invest in medium-sized offices in European cities.

The duo have formed the HILF Euro Office JV partnership and bought their first office asset in Germany for an undisclosed sum by way of a sale and leaseback deal with RWE.

The six-storey office property is located at Altenessener Str 27 in the north of the city centre of Essen.

La Francaise said the newly formed core and core-plus investment venture will target modern offices in cities Germany, Belgium, the Netherlands, Luxembourg and Ireland. The risk profile of the portfolio is core/core+.

David Rendall, managing director of La Française Real Estate Managers said: “This is a new strategy which seeks to diversify the exposure of Korean investors to office assets which are modern and well let in both major and tier 2 European cities.

“The business plan for the joint venture will consider opportunities for asset management of the portfolio over a holding period of up to 8 years. Further acquisitions are planned over the next 12 months.”

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