SEB Immobilien-Investment GmbH has entered into a purchase agreement with French developer Bouygues Immobilier for five buildings yet to be constructed in Aix en Provence, near Marseille.
Approximately 11,500 m² of office space and 575 parking spaces will be completed in the Parc de la Duranne development district by the end of 2009. SEB Asset Management's real estate company will invest approximately €23.3 million (net) in the complex. The buildings will be added to the portfolio of the open-ended real estate fund SEB ImmoPortfolio Target Return Fund upon completion. Construction and preliminary letting activities are planned to commence in early 2008. The seller has issued 12-month rental guarantees for each of the buildings upon transfer to the Fund.
The Parc de la Duranne business park, launched in 1991, has become an established location for service providers, as well as for research and development facilities. By acquiring the approx. 42,590 m² property, SEB has secured one of the last remaining undeveloped sites in the park, which covers a total of 320 hectares.
SEB continues to favour growth-intensive regional locations in France as investment targets in Europe. Property managers expect demand for office space to intensify in the coming years, as well as moderate rent increases. The relatively low level of new space production during the last cycle means that the Aix office real estate market offers an attractive basis for investment.
SEB ImmoPortfolio Target Return Fund has developed real estate assets in eight countries since its launch in October 2001. Following the sale of its Duisburg office building, the portfolio currently consists of 25 properties held directly and indirectly.
Source: SEB Asset Management