Allianz RE confirms purchase of Capital 8 in Paris

Allianz Real Estate has confirmed the acquisition of the Capital 8 office complex in Paris from Franco-Dutch property group Unibail-Rodamco. Although the acquisition price was not disclosed, market sources indicate that Allianz RE is forking out EUR 260 mln to acquire the 18,000 m² Grade-A complex. The transaction is said to reflect a yield of 5.5%.

The transaction, which was tipped by PropertyEU in early March, comes in the same week that Allianz RE completed the purchase of the Porta di Roma shopping centre in Rome in a joint venture with Corio for EUR 440 mln.

Capital 8, the former EDF headquarters, was entirely refurbished in 2005 and is currently 100% let to high-quality tenants such as Rothschild & Cie and Aforge for around EUR 800 per m². The complex comprises three independent Haussmann buildings in the heart of the Paris business district.

Unibail-Rodamco was advised by Jones Lang LaSalle, Rothschild Transaction R and Etude Ginisty; Allianz RE was advised by Etude Oudot.

This is the second French acquisition by Allianz RE in a span of a few months. Last November, Allianz RE bought La Colisee office building in La Defense business district from Morgan Stanley's French listed real estate investment arm La Lucette for EUR 160 mln.

Unibail-Rodamco is divesting a number of assets in France. The company is understood to be seeking a sale of its Saint-Martial shopping centre in the heart of Limoges, central France. The two-storey mall provides 18,000 m² of total gross lettable area across 64 units as well as three restaurants and 700 parking spaces.

The scheme was developed in 1989 and completely refurbished in 2008. Major tenants include fashion retailers C&A, H&M, Darty, Go Sport, Casa, La Grande Récré, and Nature & Découvertes.