Iii-investments shops in Paris for German pension scheme

Munich-based fund manager iii-investments has acquired an office building in Paris for a real estate special fund owned by an unnamed German pension scheme. The transaction price comes to EUR 17.5 mln.

The building, which is located in the 2nd arrondissement of Paris, has been extensively renovated in 2008 and is fully leased to several tenants. It offers a rentable area of 2,064 m².

'The Paris office market is still attractive. Although the sovereign debt crisis has reached France as well alongside rising government bond yields, prices for office properties in the Paris CBD have remained stable over the last months due to the shortage of core investments,' said Reinhard Mattern, managing director of iii-investments. 'In France investors are still taking advantage of a yield gap on real estate properties to government bond yields. Furthermore, as a result of the small number of completions we are still expecting a slightly increasing rental market in the Paris CBD.'

Further investments are in the pipeline, the company added.

iii-investments was advised by Cushman & Wakefield, Turnbull Associés and Herbert Smith.

iii-investments is the real estate investment company of HypoVereinsbank, part of UniCredit Group.