Wichford, a property investment company listed on the AIM segment of London Stock Exchange, is acquiring office buildings in France and the Netherlands for a combined investment of EUR 42 mln.
Wichford, a property investment company listed on the AIM segment of London Stock Exchange, is acquiring office buildings in France and the Netherlands for a combined investment of EUR 42 mln.
In France, Wichford has completed the acquisition of an office building in St Cloud, just outside Paris, for EUR 8.45 mln. The building is let to the Association for the Creation of Enterprises for 12 years until 2019 and comprises an internal area of 2,297 m2. The rental income of EUR 527,000 per annum is equivalent to EUR 229.4 per m2. Wichford said the gross initial yield on the investment comes to 6.24%.
The company has also forward committed to acquire an office building for EUR 33.674 mln in The Hague in the Netherlands. At practicable completion, the building will be let to the Ministry for Housing and Regional Development for 6 years, beginning July 2008. The rental income on the property, with an internal area of 12,351 m2, is roughly EUR 2 mln per annum or EUR 162.2 per m2. The gross initial yield is 6%.
The latest transactions follow Wichford's recent acquisitions of the Justice Centre in Halle, Germany and the VBG portfolio in Germany. European assets account for 24% of the company's total portfolio.