The Parisian real estate investment market is making up for its poor showing last year by claiming the biggest European property deals announced in the first few months of 2014, JLL reports.
The Parisian real estate investment market is making up for its poor showing last year by claiming the biggest European property deals announced in the first few months of 2014, JLL reports.
The French capital saw real estate spend drop 30% to about €6 bn in 2013 from almost €9 bn the year before. But activity has risen sharply in the first few months of this year.
In a publication released during MIPIM, JLL said the biggest investment sales took place in Paris, with two deals beating the €1 bn threshold. 'The interest of foreign investors for the Greater Paris Region market is undeniable early this year,' the property adviser said.
Risanamento is committed to sell its Paris real-estate portfolio to Chelsfield Partners and Olayan Group for more than €1 bn. The portfolio comprises nine prime office properties in the most sought-after Paris markets. 'Once again this transaction demonstrates that the Paris office market remains highly popular with foreign investors, particularly Middle Eastern,' JLL said.
In February, Texas-based private equity group Loan Star announced the acquisition of the special purpose building that owns Coeur Défense in Paris' main business district La Défense. Coeur Défense is the largest office building in Europe.
JLL also cited the sale of the Beaugrenelle shopping centre for €700 mln.
With such a start, JLL expects Paris investment volumes to grow in 2014. The main reason, the property adviser said, that new investors, particularly Asian and sovereign, keep Paris at the top of their shopping list is that it is the largest office market in Europe and the second-largest investment market in Europe. Paris is also a mature and deep market offering an attractive balance between risk and yields and liquidity up to very large investment volumes.
In addition, Paris ranks second in Western Europe as an international investment destination and has the biggest concentration of large corporates in Europe, according to Fortune Global 500.
Click on the link below for more on the deals mentioned.
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