Global real estate investment manager Invesco Real Estate has acquired a prime retail asset in central Paris on behalf of two German seperate account clients from a Parisian family office.
The gross acquisition price paid is thought to be close to €300 mln, equating to a 3% yield.
The 5,400 m2 asset comprises the two luxury flagship retail units of Prada and Loro Piana, as well as offices and residential units.
The deal was executed on behalf of a joint venture between the firms’ two German separate account clients, pension funds Bayerische Versorgungskammer (BVK) and Nordrheinische Ärzteversorgung (NAEV), the latter of which is administered by Universal-Investment Luxembourg.
Cristiano Stampa, managing director - transactions, at Invesco, said: '6-12 Rue du Faubourg Saint Honoré is a very strong asset, benefitting from a prime location on one of the most prestigious Parisian streets, surrounded by luxury brands and palace hotels. We are confident that the asset could deliver significant long-term upside potential through active asset management initiatives.'
The retail space covers 2,000 m2 and the asset includes a 25 metre façade. According to Invesco, the property benefits from stable long-term income, with the majority of the rent generated by the two luxury brands tenants.
William Ertz, senior director – fund management, at Invesco added: 'This transaction aims to adds further diversification benefits to our clients’ portfolio. The Paris market continues to play a big role in our European investment strategy and we are confident that, due to a global attractivness on a long-term view, the high-end luxury retail sector should prove highly resilient.'
The deal is the latest in a series of high profile transactions in Paris over the past 18 months for Invesco, including the luxury retail asset located at 53, Avenue Montaigne, the office building site named Boost in Saint-Denis and the logistics development facilities located in the vicinity of Paris.
On this transaction, the advisers to Invesco were Archers, Victoires notaires Associés, Jeantet, Arsene Taxand, Eight Advisory, Theop and Cushman & Wakefield. The seller was assisted by multi family office Herest, and advised by Lutece Stratégies et Conseils, Initium AM, Société de Gestion Malesherbes, G&G Avocats and Haussmann notaires.
The transaction has been financed by Helaba.
