Union Investment acquires office building in Paris for EUR 177m

Hamburg-based Union Investment Real Estate has acquired the office building 'A4C' in Paris Rive Gauche from asset manager Standard Life Investments for EUR 177 mln.

Completed in 2006, the fully let property offers total rental space of 25,400 m². The main tenant is Natixis, a business bank and part of BPCE, France’s second largest banking group. It uses the building on the Quai d’Austerlitz as its corporate headquarters. The head lease with Natixis for 97% of the space runs for nine years with a break option after six years. 'In terms of the current market cycle, the A4C building presents an ideal opportunity to re-enter the Paris investment market, said Dr. Karl-Joseph Hermanns-Engel, member of the Union Investment Real Estate management team.

A4C was one of the first buildings in Paris to be certified in accordance with France's HQE (High Quality Environmental) standard, in 2005.

Union Investment Real Estate has invested some EUR 1 bn in acquisitions since the start of the year. Benefiting from a strong capital base, the property fund manager is taking advantage of anti-cyclical investment opportunities, particularly in Europe's core markets.