Global Gate Capital has bought the Picasso office building in north-west Paris on a 6.8% yield, with finance from pbb Deutsche Pfandbriefbank.
The price paid by the Swiss-based asset manager is thought to be €102 mln.
The 35,000 m2 building, in the Champs Pierreux district in Nanterre, is fully let to energy company EDF for eight years.
The Picasso building was sold by Freo and UK real estate fund RevCap, which had refurbished the offices after acquiring them from UBS in 2016, at a price equating to an 11% yield.
UBS had previously bought the building for €140 mln for a European fund which it was liquidating in 2015-2016.
A local source said the building’s rent is already reversionary and that the new purchasers would benefit from the transport link improvements planned as part of the Grand Paris infrastructure project, notably the new metro line 15.
Hemisphere will act as Global Gate Capital’s local operating partner.
Norbert Müller, head of real estate finance, Europe West, at pbb, said: ‘We support the Grand Paris initiative and believe it will have a positive impact on growth, employment and the commercial real estate market.’
Rudy Sayegh, CEO of Global Gate Capital, said the firm wanted to continue to grow and diversify its real estate portfolio in France, as well as internationally.
This article first appeared in EuroProperty, PropertyEU's weekly news and analysis bulletin.
