Irish group launches fund with French acquisitions

Dublin-based wealth management company Custom House Capital had completed the acquisition of three commercial investment properties in France for a total of EUR 135 mln.

Two of the investment properties are in the Issy-les-Moulineaux business area of Paris, and the third is in the port city of in Le Havre. Custom House Capital said the Paris acquisitions have enabled it to launch its CHC Prime Property Fund 2 on Wednesday, following on from Ireland's first pan-European Qualifying Investor Fund, the CHC Prime Property Fund 1, which launched in 2006.

The CHC Prime Property Fund 2 is aimed at high net-worth individuals and will initially comprise three French properties - the new dual development properties at Issy-les-Moulineaux in Paris and an office property in Marseilles, plus a shopping centre near Munich. The minimum investment is EUR 250,000.

The Parisian dual development, bought from AXA and French developer SefriCime, comprises two landmark office complexes, Panorama Seine and Dockside, at Issy-les-Moulineaux. Both developments are situated right on the River Seine and are due for completion early next year. The larger of the two, Panorama Seine, is an 8-storey state-of-the-art building, comprising almost 7,900 m² of office space and its double-storey basement will accommodate 71 cars. It is due for completion in January 2008.

The second property, Dockside is a 2-storey building over basement, comprises about 2,000 m² of office space and has 47 underground car parking spaces. It is due for completion in March 2008.

The Irish wealth manager said the Issy-les-Moulineaux dual development was acquired for EUR 108 mln, reflecting a net yield 4.2%. The two buildings are 100% pre-let to house the global headquarters of food and facilities manager Sodexho Alliance on a 12-year fixed lease. The combined annual rent is almost EUR 4.5 mln.

Knight Frank Ganly Walters, Dublin, acted jointly with King Sturge. Simmons & Simmons and Le Breton & Associés acted on behalf of Custom House. Sefri-Cime was advised by Pardieu Brocas Mafféi and Wagny Katz. The financing was arranged by Aareal Bank, who were advised by notaries Allez & Associés.

The third property is Le Colbert at Le Havre. A 6-storey mixed use office and retail building that consists of a core element and two wings 'Earth' and 'Sea', it was purchased for EUR 27.8 mln, inclusive of costs. The gross initial yield is about 6.26%, with a net initial yield of about 5.68%.