Gecina has signed a preliminary agreement to acquire an office asset with nearly 19,000 m² of space, adjacent to Gare de Lyon in Paris’ 12th arrondissement, from the Klésia group.
The “Tour Van Gogh” which previously housed the Mornay group’s headquarters is now vacant and will be fully redeveloped, with delivery scheduled for mid-2018.
The total investment is expected to represent close to €150 million, achieving a yield on cost of around 6%, with an unleveraged IRR of over 9%, significantly higher than Gecina’s requirements.
The building is located at the heart of the Gare de Lyon / Austerlitz / Bercy business district, with outstanding public transport and road network connections. The building is adjacent to the Gare de Lyon transport hub, with mainline train services between Paris and the South of France, as well as the RER regional express lines A and D, Metro lines 1 and 14, and more than a dozen bus services. The extension of line 14 of the Paris Metro, planned for 2019 to 2023, will establish Gare de Lyon as a key hub within the Grand Paris transport project.
This commercial district is characterized by the presence of numerous corporate headquarters, and public sector organizations. The district has a particularly low vacancy rate of less than 4%, with very limited future supply in terms of new or redeveloped space.
Gecina has secured over 1.7 billion euros of new investments since the start of the year through the Sky 56, City 2, T1&B, PSA and Tour Van Gogh operations.