DEGI Deutsche Gesellschaft für Immobilienfonds mbH has once again made an investment in Paris, following capital gains for DEGI INTERNATIONAL from a sale in the French metropolis during July 2005. The total investment volume for the office and commercial building M 7 in Rive Gauche district comes to about €124.5 million. Thus within a few weeks DEGI has secured properties worth a total of around €412.5 million for DEGI INTERNATIONAL, which is currently managing fund assets of about €1.35 billion.
Diversification is vital in the acquisition phase as well
Many property investors focus their acquisition strategies solely on the most liquid markets for opportunity reasons, which will increase their portfolios volatility. DEGI INTERNATIONAL acquisition strategy has prioritised broadly-based diversification from the very beginning, says DEGIs Managing Director Malcolm R. Morgan. Including the properties secured by purchase agreements, the fund now owns investments in nine different countries, and is broadly diversified. France would accordingly account for the highest proportion in terms of a national breakdown, at 30.2%, and South Korea for the lowest, at 2.8%.
Rive Gauche, an attractive submarket, centred around the National Library Rive Gauche, in the south-east of Paris, is a modern, established inner-city office market, with approximately 1.8 million m² of office space, extending over the 12th and 13th arrondissements. Multinational corporations, particularly banks, management consultants and telecommunication companies, have settled here around the French National Library. The popularity of this submarket is reflected in its low vacancy ratio of 6.4%.
Office and retail space on 15,410 m
The 8-storey office building on Avenue de France, in the direct vicinity of the French National Library, constitutes the centre section of the M7 building complex completed in 2004. The 13,635 m of office space provides options for flexible utilisation by a single tenant or multiple letting. On the ground floor, there are three shop units for retailers, all of them fully let already, and a cafeteria. The property is conveniently situated for public transport: three Metro and two regional railway (RER) lines are less than 100 metres away. Car drivers can use the 132 garage parking lots, and will reach the citys ring motorway after less than 2 kilometres.