French real estate investment trust Gecina has snapped up the Mirabeau tower in southern Paris from Aberdeen's Degi International open-ended fund which is in the process of being liquidated.
French real estate investment trust Gecina has snapped up the Mirabeau tower in southern Paris from Aberdeen's Degi International open-ended fund which is in the process of being liquidated.
The investment volume was €186 mln excluding taxes, reflecting a yield of over 7%.
The building is 88% occupied, mainly let to public sector entities with an average residual term of close to six years. The asset has the potential to generate a net yield above 8% when fully let, Gecina, the Paris-based office group, said in a statement.
Designed by the architects Le Maresquier & Heckly, Mirabeau was built in 1972, and offers almost 35,000 m2 of office space over 18 floors, in addition to 379 parking spaces, in the 15th arrondissement of Paris.
Degi bought the scheme in 2004 from Group AGF for €220 mln.
In a statement, Gecina said it will revamp the asset over the medium term, as part of plans to generate more value.
Gecina was advised by notary office Wargny Katz, law firm Fairway and research office Nerco; the seller was advised by notary firm Le Breton et Associés, L’Etoile Properties Services and BNP Paribas Real Estate under a co-exclusive agreement with Jones Lang LaSalle.
This is the first major office acquisition announced by Gecina over the past three years. In the past months, the listed office group has been focusing on further diversifying its portfolio as part of a strategy to increase the share of alternative assets.
