Tamar European Industrial Fund has sold a portfolio of three light industrial buildings situated in the Paris region, to private investor PCVI Group for EUR 7.45 mln. The investment volume reflects a price that is close to the fund's latest March 2010 valuation.
Tamar European Industrial Fund has sold a portfolio of three light industrial buildings situated in the Paris region, to private investor PCVI Group for EUR 7.45 mln. The investment volume reflects a price that is close to the fund's latest March 2010 valuation.
The fund was formerly known as Kenmore European Industrial Fund.
The three assets are located in the Parisian suburbs of Tremblay-en-France, St Leu-la-Foret and St Ouen l'Aumone. The portfolio provides a total area of 11,745 m2 and is fully let to 11 tenants. The total gross rent is EUR 723,000 and thus the price reflects a net initial yield of 9% on the gross purchase price.
The majority of leases are on traditional nine year terms with three yearly tenant break clauses, with the latest letting, concerning the asset in Tremblay-en-France, renegotiated by Tamar to existing tenant, Still, the forklift truck manufacturer, on a new nine-year firm basis.
This latest TEIF asset sale follows the recent disposal of the two assets in Finland for a combined total of EUR 21 mln.
Rob Brook, managing director of Tamar Financial Services, Investment Manager to TEIF, commented: 'This sale demonstrates continued investor demand in the light industrial sector. Tamar has successfully implemented its asset management strategy which has resulted in a successful outcome for the Fund. The sale also shows stability in investment values and confidence in the Fund’s latest valuations.'
BNP Paribas Real Estate advised TEIF on this disposal.