CBRE Global Investors has completed a series of transactions on behalf of one of its separate account clients as part of an active management strategy focusing on enhancing the client’s direct return and diversifying the portfolio across Europe.
The company has completed the sale of Westend Duo, an office building based in Frankfurt, Germany for in the region of €240 million. The trophy asset, one of the highest towers in Frankfurt’s business district, currently provides a gross market yield of approximately 5% and was acquired in 2006. The purchaser was Deutsche Asset & Wealth Management.
The proceeds from the sale of the property have been reinvested in two properties in France and Italy. The investments are as follows:
- The 20,996 m² gallery within the Carrefour Limbiate shopping center in Limbiate, has been acquired for a price around €140 million. The center is located in the affluent area north of Milan and is 97% let to high quality retailers such as MediaWorld, H&M, and Piazza Italia. The acquisition offers a net yield of around 7.1%.
- €11.25 million in a logistic building in Pusignan, France, which lies close to Lyon and adjacent to its airport. The 14,676 m² property is let to logistics providers Panalpina and Geodis and was purchased for a net yield of 8.1%.
John Ozinga, head of separate accounts Continental Europe, CBRE Global Investors, said: “These transactions reflect the active investment management strategy of our client to repositioning its real estate portfolio. The new investments in high yielding assets highlight that there is a range of attractive opportunities available across continental Europe as a whole.”
CBRE Global Investors has further retail and logistic investments in Italy and Germany under offer for their client which are expected to complete in Q1 2014.
Source: CBRE Global Investors