Terreis buys EUR 92m worth of Paris assets

French SIIC Terreis said that it has acquired EUR 92 mln worth of French properties as it seeks to take advantage of investment opportunities in the market. The company has acquired three office buildings and seven retail units in Paris and its surroundings in the past quarter, bringing the total investment so far this year to nearly EUR 150 mln. In total, the investments reflect an initial yield of 6.74%.

The acquisitions involve two multi-let office buildings located at avenue George V in the 8th district and at Rue de la Paix in the first district, an office building leased to the public administration and located in Antony, in the western outskirts of Paris as well as a portfolio of seven retail units in Paris.

'Terreis will continue to benefit from its proven capacity of buying high-quality assets in good conditions, in particular in the current context where financing conditions are attractive, aimed at pursuing the creation of a high-quality portfolio providing good rental profitability,' the company said.

Terreis is targeting a full-year rental income of over EUR 21 mln for 2010. In the first three quarters of the year, the company posted rental revenues of nearly EUR 15 mln, up over 62% compared to the same period a year before but representing a year-on-year increase of just 0.6% on a like-for-like basis.

Terreis focuses on small-size office buildings and retail assets in city centre locations in Paris and other major French metropolises.