French fund Primonial has purchased the IN/OUT office building in Paris from SFL, the French subsidiary of the Colonial Group, for a price expected to be around the €400 mln mark.
As predicted last week in EuroProperty - PropertyEU's sister publication - the 35,000 m2 office property, located in the Boulogne-Billancourt district in Paris, was divested in a competitive selling process. According to SFL, the deal volume represents a significant premium on the last valuation.
'This transaction highlights the success of the value creation strategy implemented by the Colonial Group and in this particular case executed by our French subsidiary SFL,' said Pere Viñolas, CEO of Colonial.
The building is 100% occupied by the OECD on a 12 year lease contract, inked in 2015 after a significant repositioning of the asset. SFL said that the submarket 'Croissant Ouest', where the asset is located, had reached yields below 4%.
'We have been able to capture maximum returns through the full real estate value chain, identifying first an opportunity of repositioning an asset, creating a quality product for the market, closing a long-term leasing agreement with a high solvency tenant, and signing the sale of the asset at the optimal timing for this asset,' said Juan José Brugera, chairman of Colonial and SFL.
The IN/OUT building was designed and built by SFL through the complex redevelopment of the historical Phillips headquarters in Paris. The actual deal volume will be kept confidential until final closing, Colonial said.
JLL acted for the vendor.
