HSH Nordbank has agreed to finance the "41 YBRY" office property for Bankhaus Wölbern. The Hamburg-based institution intends to place the property, which is located in Neuilly-sur-Seine in the Paris metropolitan area, in a closed-end fund. The large-scale loan is divided into an initial €76 million equity interim financing and a subsequent €84 million long-term financing.
41 YBRY, Paris, France.
"The Paris metropolitan region is one of Europe's most attractive property markets. We plan to step up our presence as a finance partner in France, given that we expect the office market in this metropolitan region to show a continued stable trend, with investor demand remaining strong", said Bernhard Visker, head of HSH Nordbank's property business.
At the end of the 1990s, HSH Nordbank substantially expanded its commercial real estate lending business
beyond national borders and now manages an international lending volume of around €8.1 billion. In FY 2005 and in the first half of 2006, the bank extended new real estate loans worth €6.5 billion and more than €4.6 billion, respectively, outside Germany. HSH Nordbank has also been present in Paris since March 2005 with an office managed by Michel Delmond.
Built in the seventies and thoroughly redeveloped in 1997, the "41 YBRY" office complex is fully let to Ernst & Young, the internationally renowned accounting and consulting firm. The lease expires in 2015. Being the world's second largest accounting and consulting firm, Ernst & Young employs some 5,000 people in France, including approximately 800 at "41 YBRY". The eight-storey office complex with its modern glass facade comprises a total of just over 15,000 square metres of lettable space as well as 280 parking slots. The local Neuilly-sur-Seine market offers only very few properties of comparable quality.
The building is located close to Avenue Charles-de-Gaulle, one of the main thoroughfares in the greater Paris area, which connects La Défense and the CBD of Paris. The city centre, the La Défense office quarter and the large Charles-de-Gaulle airport are all within easy reach from here. Neuilly-sur-Seine is an affluent suburb to the west of Paris. Companies such as PWC, Roche, IBM and Axa are located Seite 2 von 2 here. Vacancies stood at just around 3% in the first quarter of 2006, which is clearly below the 5.3% average recorded for the Ile de France region as a whole.
Source: HSH Nordbank