Fidelity Eurozone Real Estate Fund has completed the off-market purchase for a 9,376 m2 cross-docking facility in Alfortville, a suburb close to the centre of Paris.
The purchase price of €16.6 mln reflects a net initial yield of 6.85%.
The building is currently let solely to Chronopost, part of the DPD Group, the second largest parcel delivery organisation in Europe, and a subsidiary of the French Post Office, La Poste.
Keith Sutton, fund manager at Fidelity International, said: 'This is a great addition to our strong core Eurozone portfolio, supporting our strategy to provide clients with stable income and capital growth. Sourced off-market by our local Paris team, our clients are getting a high quality asset with a top tenant at a very attractive price.'
Fidelity's Eurozone Real Estate Fund is a balanced real estate fund for institutional investors. The fund invests across the core Eurozone markets of Germany, France and the Benelux countries. The fund delivered a total return of 13.5% in 2015, outperforming the INREV industry benchmark by 5.1%.
