Global real estate investment manager Barings has sold an office building in Paris, on behalf of a pan-European value-add real estate investment strategy for institutional investors, to a French institutional investor.
Financial details were not disclosed.
The asset at 9 Rue du Helder, acquired vacant in 2018, has been comprehensively repositioned to a Grade A office building with Breeam ad HQE Excellent ratings.
Whilst the works were ongoing, Barings pre-let the entirety of the 1,700 m2 space to a global fashion brand on a nine-year lease, ten months ahead of completion. Situated in the ninth arrondissement, 9 Rue du Helder is in the heart of the Opera sub-district.
Severine Maumy-Laffineur, managing director and country head real estate France, said: 'When we acquired 9 Rue du Helder back in 2018, we saw an opportunity to leverage its sought-after location in an area of Paris where there is a chronic shortage of available high quality office space.
'Following the implementation of our asset management strategy to transform the property into a Grade A office, which included delivering an extension and roof terrace with exceptional views over the Opera district, we have now realised our business plan in just two and a half years.
'During this time our expert local team on the ground also fully let the building to a new tenant, securing rent ahead of our underwriting assumptions during the Covid-19 pandemic.'
Gunther Deutsch, managing director, head of real estate transactions – Europe at Barings, added: 'This sale, at a prime yield, is in line with our value-add strategy and delivers a significant profit and strong returns for our clients.
'Having entered the French market three years ago, this is the second realisation we have achieved on behalf of our value-add strategy after the sale of a logistics property in Le Coudray-Montceaux, also in the Paris region.
'We are still looking for value add opportunities in both the logistics and office sectors in France and across Europe in 2021, with an additional focus on the residential build to rent and student housing sectors.'
Oudot & Associés provided legal advice whilst BNP Paribas Real Estate acted as leasing agents.
