Invesco Real Estate bags EUR 600m of Paris assets

Invesco Real Estate is acquiring two trophy office properties in Paris for some EUR 600 mln on behalf of an unnamed Middle Eastern sovereign wealth fund, PropertyEU has learned. Both properties are being sold by German fund manager KanAm's Grundinvest Fonds which are currently under liquidation.

The transaction, which is believed to reflect a yield of 5-5.25%, involves jeweller Cartier's head office in Paris which KanAm bought in 2007 for EUR 380 mln. The Cité du Retiro complex is located near the Élysée palace and provides some 21,000 m² of space, distributed across four connected buildings on seven storeys and leased to Cartier through 2019.

Also in Paris, Invesco Real Estate is acquiring Neo, an office building providing 26,700 m² in the ninth district of Paris. It is let until 2019 to newspaper Le Figaro. The asset was acquired by KanAm back in 2005 for EUR 269 mln. The deal is expected to close by the end of April.

KanAm and Invesco Real Estate both declined to comment.

According to well-informed market sources, KanAm has also been seeking to sell Tour Egee in Paris for EUR 270 mln through Knight Frank and Strategies & Corp, but the asset failed to raise interest due to the loss of a tenant. It is understood that KanAm will be looking to re-let the space before bringing the asset back onto the market.

Last week KanAm sold two office properties in London to Malaysian investment fund Permodalan Nasional Berhad (PNB) for an undisclosed amount.

The assets are One Exchange Square in London's City financial district, which houses the headquarters of the European Bank for Reconstruction and Development, and 90 High Holborn, which is leased to law firm Olswang Solicitors. KanAm was advised on that deal by Knight Frank.