Gecina acquires EUR 440m worth of offices

French REIT Gecina has sealed three acquisitions in the office sector, representing a total commitment of over EUR 440 mln. The purchases are in line with the company's strategy to strengthen its position in the office segment and expand the office portfolio from EUR 5.5 bn to EUR 9 bn by 2014.

The operations involve two let and pre-let assets generating secure cash flows based on an average yield of 6.5%, and a speculative development with a high yield rate of 8%. The assets are located close to Paris and are ideally designed to accommodate headquarters of single tenants, therefore optimizing management costs, Gecina said.

The company is buying Les Portes d’Arcueil, an office complex in Arcueil from two funds managed by UBS Real Estate Kapitalanlagegesellschaft. Built in 2006, the property provides 45,000 m² and 940 parking spaces across three buildings. The entire scheme has been leased in full to France Telecom for the offices and to Flo Group restaurants for the retail spaces.

In Montrouge, Gecina is to acquire the entity holding the site and the development right for an office programme of 24,000 m². The Park Azur property, which is to be built in partnership with Abcdgroup, has been fully pre-let to EDF with a firm nine-year period. Scheduled to be delivered in 2012, the project has a building permit in place and is aiming to achieve the HQE and BBC energy-efficiency certificates.

In Gennevilliers, Gecina has signed a contract with Nexity-Entreprises to acquire the Pointe Métro 2 building, which will offer 15,000 m² of office space and 274 parking spaces over two basement levels. Work will begin in January 2011, with delivery scheduled for the end of 2012. This project, designed by the architecture firm Jean-Paul Viguier, is aiming for the HQE and BBC energy-efficiency certificates. 'This speculative development is expected to be delivered in an environment marked by a supply shortfall in 2012,' the company noted.