Swiss Life to pay €1.7bn for premium office portfolio in Paris
Swiss Life Asset Managers has agreed a €1.7bn deal to buy an office portfolio in Paris from Terreïs.
The €194.4bn manager said it has signed a memorandum of understanding with the listed property firm to buy the 28 core office buildings in the central business district (CBD) of the French capital.
The assets will be acquired by real estate funds managed by Swiss Life Asset Managers’ entities in Switzerland, France, Germany and Luxembourg.
Swiss Life said 90% of the portfolio consists of prime office buildings located in the CBD of Paris.
Frédéric Bôl, the CEO France of Swiss Life Asset Managers, said: “The availability of major transactions in Paris is limited and the assets we are seeking to acquire are currently a rarity in the market.
“We are thus providing to our client’s unique access to the Paris CBD office market and enable them to invest in high quality, rarely accessible buildings, in prime locations but with a reversionary rent potential we can capture via our asset management.”
The disposal by Terreïs represents around 72% of the company’s property portfolio as at the end of last year. Terreïs’ assets consist of offices and retail premises that are primarily located in Paris.
Following the transaction, Terreïs said it will retain a property portfolio of around €600m, including €150m of non-strategic assets.