Irish wealth management company Custom House Capital (CHC) has continued its expansion in France with the acquisition of the modern Futura II mixed-use office and retail building in Paris for just under EUR 35 mln. The deal by CHC on behalf of a number of private clients was transacted by global property consultants Knight Frank in Dublin and King Sturge Paris. The transaction price reflected a gross yield of 5.8% and a net initial yield is 5.26%.
Irish wealth management company Custom House Capital (CHC) has continued its expansion in France with the acquisition of the modern Futura II mixed-use office and retail building in Paris for just under EUR 35 mln. The deal by CHC on behalf of a number of private clients was transacted by global property consultants Knight Frank in Dublin and King Sturge Paris. The transaction price reflected a gross yield of 5.8% and a net initial yield is 5.26%.
Futura II is a newly completed 6-storey building comprising 7,179 m2 of office space and 558 m2 of retail space in the western Parisian suburb of Saint-Quentin-en-Yvelines. The office space is entirely let at an annual rent of EUR 1.7 mln on a 9-year lease to a single blue chip tenant, Assytem, the Paris Stock Exchange-listed international developer of products for the automobile, aeronautical and energy sectors. The retail area is allocated for a restaurant and bistro.
Commenting on the new acquisition, Harry Cassidy, chief executive of CHC said: 'We are very happy with this acquisition as it adds to our already growing French portfolio. Our investors are strongly attracted by the net initial yield on this property, which compares very favourably to yields achieved elsewhere in the Paris region'.
Suzanne Fitzgerald, investment surveyor and divisional director at Knight Frank, who has advised Custom House Capital on all of its French purchases, added that 'within the current financial climate, it is more important than ever to insure that there are strong market fundamentals underpinning property investments. Le Futura II is located in a strong business district, with a long term international tenant in place and there is evidence of rental growth in the surrounding area. It also takes advantage of the yield shift experienced in the latter end of 2007, offering value to investors.'
Established in 1997, CHC managing over EUR 1.2 bn worth of client assets. The company's investment portfolio comprises 80% property and 20% equities. Over 30 large overseas commercial investment properties were purchased during 2007 in Germany, France and Switzerland alone.
