Commerz Grundbesitz signs French development deal

Germany-based Commerz Grundbesitz-Spezialfondsgesellschaft (CGS), a subsidiary of Commerz Grundbesitz Group (CGG), has signed the deed for the logistics property Toussieu 2 in Lyon, France, the company announced Thursday.

The deal involves a project development with a total investment volume of around EUR 11 mln, with completion scheduled for December 2007. The logistics property, which is earmarked for the company's Euro Logistik 1 institutional property fund, will have a total lettable area of about 17,900 m². The asset yield after fund expenses will exceed 6% in the ten-year mean, the company said.

The project is located south-east of Lyon at the junction of two major motorways, ensuring excellent connections to the Lyon conurbation, the company said. The building is situated next door to Toussieu 1, another property for which CGS recently signed a deed.

'We have intensified our search for new investment opportunities for our institutional property funds,' commented Dr. Frank Pörschke, chairman of the board of managing directors of CGG. 'As far as the real estate group as a whole goes, we are planning real estate acquisitions with a volume of more than EUR 2 bn worldwide,' he said.