Schroder Real Estate buys new office building in Paris for €130m

The brand new Résonance office building is in Bagneux, south of Paris, along the Line 15 of the Grand Paris infrastructure project. The property, developed by Codic, was completed in June 2016 and has been pre-let to a major tenant on a nine-year lease.

The Résonance building has 25,000 m2 of flexible space, a wide range of ancillary services and 428 parking spaces. The property has achieved a BREEAM 'very good' rating and has high sustainability credentials.

'We are delighted to complete the acquisition of such a prominent asset in a growing sub-market in Paris where we can add value,' said Tony Smedley, Head of Continental European Investment at Schroder Real Estate. 'The purchase is entirely consistent with our strategy of investing in growth cities, where infrastructure projects are expected to transform a sub-market and generate long term alpha.'

The acquisition is the second strategic partnership in the Paris market between IED and a major French insurance group, Smedley said: ‘This is the second such joint venture in Paris on behalf of our pan European fund and follows an earlier, highly successful, investment in the Rive Gauche where we also took a calculated leasing risk.’

The plan for IED is to continue to grow its portfolio in a disciplined manner, he said, and further investments will be announced soon.

Immobilien Europa Direkt, an open-ended Euro denominated fund, was launched by Schroders and Zurich Investment Foundation and has been designed specifically for Swiss pension schemes. Its investment strategy is focused on providing investors with attractive long-term investment returns from a diversified portfolio of commercial real estate in the main western European markets.

Schroder Real Estate, which has £11.8 bn of assets under management, is part of the global asset management company Schroder, which has offices in 27 countries across Europe, the Americas, Asia and the Middle East.