CBRE Global Investors has completed a series of transactions on behalf of a separate account client who is seeking to enhance direct returns and diversify its portfolio across Europe.
CBRE Global Investors has completed a series of transactions on behalf of a separate account client who is seeking to enhance direct returns and diversify its portfolio across Europe.
The fund manager completed the sale of Westend Duo, an office building based in Frankfurt, Germany for about €240 mln. The trophy asset, one of the highest towers in Frankfurt’s business district, currently provides a gross market yield of around 5% and was acquired in 2006. The buyer was Deutsche Asset & Wealth Management (formerly RREEF).
The proceeds from the sale of the property have been reinvested in two properties in France and Italy.
In Italy, CBRE Global Investors acquired a retail gallery within the Carrefour Limbiate shopping centre in Limbiate for around €140 mln. The 21,000 m2 centre is located in the affluent area north of Milan and is 97% let to retailers such as MediaWorld, H&M, and Piazza Italia. The acquisition offers a net yield of around 7.1%.
CBRE Global Investors also acquired a 14,700 m2 logistics building in Pusignan, close to the French city of Lyon and adjacent to its airport. The investment volume of €11.25 mln reflects a net yield of 8.1%. The property is let to logistics providers Panalpina and Geodis.
John Ozinga, head of separate accounts for Continental Europe at CBRE Global Investors, said: 'These transactions reflect the active investment management strategy of our client to repositioning its real estate portfolio. The new investments in high yielding assets highlight that there is a range of attractive opportunities available across continental Europe as a whole.'
CBRE Global Investors has further retail and logistics investments in Italy and Germany under offer for the client which are expected to complete during the first quarter of 2014.