The pension fund for the canton of Geneva has bought a CHF102m (€99m) office asset from Swiss boutique real estate investor Propreal Capital Partners.
Propreal said it sold the fully-leased 7,070sqm office property in central Geneva to Caisse de prévoyance de l’Etat de Genève (CPEG).
The building, located on Boulevard de la Tour 8, was previously occupied by BNP Paribas.
Yves de Kerdanet, founder and CEO Propreal Capital Partners said: “Our successful restructuring of the existing lease with BNP Paribas brought a government-backed tenant on board for a 20-year term in an office market that is still feeling the after-effects of the Covid-19 pandemic.
“This paved the way for a deal with CPEG to acquire the property and terminate the co-ownership structure. Altogether this transaction has helped to unlock substantial investment value.”
Marcus Siggelow, head of asset management at Propreal Capital Partners said Propreal had an opportunity to restructure the existing lease and negotiate a new government-backed lease for a 20-year term with the Geneva University Hospitals.
“This value-enhancing leasing agreement illustrates the quality of the location and the building and we’re now on the lookout for further opportunities to expand our portfolio across pan-European markets.”
Siggelow said the funds generated from this disposal will enable the company place more capital in other prime pan-European assets.
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