UBS Asset Management's Italian real estate business has completed the acquisition of a prime luxury retail real estate portfolio in the heart of Paris, France for €250 mln.
The three-asset high street portfolio was acquired via the alternative investment real estate fund, UBS (I) Diamond Eurozone Offices (UBS-DEO), which targets core and core plus investment opportunities in prime locations within top eurozone cities.
The pan-European UBS-DEO fund is managed by UBS and reserved to Poste Vita, the Italian insurance company. It is characterised by a core return profile, aiming to generate stable, diversified returns over the long-term. Launched in 2016 as part of Poste Vita's internationalisation strategy, the vehicle had an initial equity commitment of €300 mln.
The three assets are located at numbers 12, 14 and 48 of Avenue Montaigne, part of Paris’ exclusive ’Golden Triangle’, in the eighth arrondissement of the French capital. The name of the vendor remains confidential.
Each of the unique portfolio’s three properties are leased to international high-fashion retailers including Miu Miu and Prada, benefitting from strong covenants and long-term agreements.
Marco Doglio, head of real estate Italy at UBS-AM real estate & private markets, commented: 'This unique portfolio comprises three exceptional and well-let assets in one of the world’s most sought-after ultra-prime shopping destinations. Paris continues to attract record tourist numbers, while strong demand continues from the best brands for this esteemed location. These factors align perfectly with the fund’s goal of generating strong and stable returns over the long-term.'
