International real estate fund manager Cordea Savills has completed the first acquisition in Paris on behalf of its recently launched European Retail Fund (ERF).
International real estate fund manager Cordea Savills has completed the first acquisition in Paris on behalf of its recently launched European Retail Fund (ERF).
The vehicle has acquired two high-street retail units located on Rue de la Paix in the French capital for around €24 mln.
The assets are fully leased on a long-term basis to jewellery groups Tiffany and Harry Winston.
'The transaction was completed in a very short period of time and we managed to reach the objectives of the fund to distribute an annual 5%. With this acquisition, we should surpass an internal rate of return of 7%,' said Ian Jones, portfolio manager of ERF.
Cordea Savills was advised by Savills, Simmons & Simmons and C&C Associates Notaries. The seller was advised by CBRE, Winston & Strawn and Rochelois, Besin & Associes.
Launched in late 2012, Cordea Savills European Retail Fund has already made two other acquisitions in Glasgow and Berlin, with the value of its assets amounting to €50 mln.
In France, Cordea Savills focuses on commercial properties valued between €15 and €70 mln and with a core to core+ risk profile.
