Real estate fund manager Cordea Savills has completed the purchase of a retail and office building in the central business district of Paris for EUR 48 mln on behalf of the European Commercial Fund. The net initial yield is 5.3%.
Real estate fund manager Cordea Savills has completed the purchase of a retail and office building in the central business district of Paris for EUR 48 mln on behalf of the European Commercial Fund. The net initial yield is 5.3%.
The property was sold by GLL Real Estate Partners GmbH acting for its international separate accounts.
Cordea Savills said that the tenant base provides diversification via six national and international tenants with strong covenants, such as Nespresso and the government.
GLL was advised by Gide. The transaction was completed by Colliers UFG PM (Investment Department) with an exclusive sale mandate.
Cordea Savills was advised by Freshfields Bruckhaus Deringer LLP and Maître Le Falher (Etude Le Breton & Associés).
With recent additional equity commitments from German institutional investors, the European Commercial Fund is targeting a further EUR 100 mln of acquisitions by the end of the year and more investments are envisaged for 2011.
The European Commercial Fund offers institutional investors low risk investment in commercial property in the largest economies in the EU. Target markets are France, UK, Nordics, Benelux, Italy, Spain and Germany. The fund has an income focus and targets stable annual distributions of at least 5% and a net total return of at least 7% per annum after fees and taxes.
Thomas Guetle, director of Institutional Business at Cordea Savills, commented: 'The fact that we continue to raise equity for our European Fund confirms not only our strategy to focus on the core markets in Western Europe but demonstrates also the trust and alignment of interest investors have with our fund and investment team.'
