Gecina shops in Paris with €133m office buy

French REIT Gecina has signed a preliminary agreement to acquire Le France office building in Paris' 13th arrondissement.

The price tag of around €133 mln including duties, reflects a net yield of 6.4% and is part of Gecina's strategy to increase its presence in the office sector in France.

The vendor is insurance group AG2R La Mondiale.

Located at 190-198 Avenue de France, in the Paris Rive Gauche , the scheme was developed in 2001, and provides 20,300 m2 of gross space as well as 114 parking spaces. The entire complex is let to the public education authority.

Gecina currently has a warchest of nearly €1 bn following the disposal of the Beaugrenelle shopping centre earlier this year. 'This acquisition illustrates Gecina's focus on inner Paris, while contributing to the geographical diversification of our portfolio,' the Paris-based REIT said in a statement. The group previously had no presence in Paris Rive Gauche, an established office hub with some 520,000 m2 of space.

Gecina was advised by notary firm Wargny-Katz and LBA Ingénierie, while the seller was advised by Thibierge. Agents CBRE and Keops brokered the deal.