Listed property firm Terreis has signed a preliminary agreement to acquire an office building at 50/52 boulevard Haussmann in Paris' central business district for a total of €138 mln.
Listed property firm Terreis has signed a preliminary agreement to acquire an office building at 50/52 boulevard Haussmann in Paris' central business district for a total of €138 mln.
The scheme, comprising 14,900 m2 of office space and 82 parking places, is fully leased, generating €8.3 mln in annual rental income, and yields an immediate return of 6.02%.
The deed of sale is to be finalised by 20 December 2013.
The acquisition, part of Terreis' refocusing on the Paris market, will be financed by a 15-year loan in the amount of €80 mln, at a 3.55% fixed rate (through a variable interest rate swap).
In addition, the French reale state investment trust said it has continued to sell off its regional properties, completing €17.5 mln of sales over the past nine months.
