UBS Asset Management (UBS-AM) real estate & private markets (REPM) has paid €43 mln for a prime office building in Paris.
The vendor in the transaction was a private real estate investor. UBS made the acquisition on behalf of its UBS (I) Zurich Italy – Real Estate Fund.
Located at 14 Avenue Franklin Delano Roosevelt, in the 8th Arrondissement of the French capital city’s central business district, the asset comprises 1,532 m2 across six stories, the Haussmannian-style building was recently extensively refurbished by the vendor. It features around 300 m2 of ground floor retail space let to a major multinational supermarket chain.
The property has a mix of tenants active in retail, fashion and consultancy, and presents an institutional-grade investment proposition on account of its high quality, prime location and diversified tenant roster.
The Haussmannian building purchase was the second addition to the fund’s French offices portfolio following the acquisition of Open 6, an office-led property in Lyon, earlier this year.
Gijsbert van Riemsdijk, head of transactions Europe ex CH at UBS-AM real estate & private markets, commented: 'This prime acquisition offered the rare opportunity to gain access to a core office property benefitting from a highly-sought address in a leading global city.
'Our ability to conclude this transaction amidst the challenging economic backdrop is testament to the expertise of our local team, while our conviction in the strong underlying fundamentals of the Paris office market gave us the confidence to proceed.
'The asset’s highly defensive characteristics, clear visibility of income streams and longer-term upside potential align with the Fund’s goal of generating resilient returns for our client.'
