Commerz Real acquires office scheme southeast of Paris

Commerz Real acquired the office scheme 'Le Flavia' from GE Real Estate France in Ivry-sur-Seine near Paris. The total investment volume of the acquisition, which is earmarked for the hausInvest europa open-ended real estate fund, was about EUR 72 mln.

The property has a gross lettable area of 16,400 m² and is fully let on a long-term lease to FNAC, an entertainment products provider in France, Belgium, Spain and Portugal. The company relocated its headquarters to this property which was completed in January 2008.

The Paris-based consulting firm Estate Consultant facilitated the acquisition.

'Being let in its entirety and on a long-term basis to a high-net-worth tenant, this modern and technically high-end scheme will guarantee a secure cash flow, and contribute to the sustained enhancement of the fund performance,' said Hans-Joachim Kühl, member of the board at Commerz Real and in charge of real estate acquisitions. 'It is not just the proximity to Paris that causes major and prestigious companies to relocate here, but also the low rent rates compared to downtown Paris. Hence we see a substantial development potential here.'