Principal Global Investors acting through its real estate investment team, Principal Real Estate, has demonstrated the kind of asset it is on the look out for to satisfy its core European office fund.
Teaming up French real estate private equity business, Atream, the firm has jointly acquired the Urban Garden office building in Lyon for more than €150mln from HIG Capital.
Principal is making the investment on behalf of the Principal European Office Fund (PEOF) and Atream on behalf of a club-deal of French institutional investors comprised of Caisse d’Epargne Rhône Alpes Foncière, Caisse d’Epargne Normandie, Caisse d’Epargne Loire Drôme Ardèche, Caisse d’Epargne Loire Centre, Groupama Rhône Alpes, CARAC, SCI CARAC Perspectives Immo and SCI Atream Euro Hospitality.
The 29,927 m2 office building was completed in May 2021 and is fully let to tenants with a combined WALT of 8.4 years. It has been described as five buildings providing premises with ‘the highest standards of specificities’, including large open areas, leisure spaces, terrasses and external gardens with a BREEAM Excellent rating, R2S, Biodivercity and Osmoz labels.
Guillaume Masset, president, and head of transactions and asset management Europe at Principal, stated: ‘It’s been great to partner in joint venture with Atream. Urban Garden is a prime office asset, let to strong covenants on long leases. Built to high environmental and sustainability standards, it is well-suited to the future evolution in office use in Europe.'
He said: 'This is an excellent example of the type of core asset we’re looking to acquire for Principal’s European Office fund.'
The transaction has been brokered by CBRE and BNP Real Estate.
