SEB ImmoInvest grows in Paris: €60 million office development acquired (FR)

SEB Immobilien-Investment GmbH intends to profit from the dynamic demand for office space in Paris, and is investing €60 million in the 'Le Prélude' office development at the Boulogne-Billancourt office district for the SEB ImmoInvest open-ended real estate fund. The new acquisition will be transferred to the real estate portfolio upon its completion in April 2006. The seller is the Hines European Development Fund (HEDF). The project was acquired as part of a company cquisition (share deal).

'Le Prélude' is situated in the 'Première Peripherie' district in the southwest of Paris, bordering directly on 'ZAC Seguin-Rives de Seine', currently one of the largest development areas in Europe. Negotiations are already underway with several parties interested in leasing the entire 6-storey building with around 8,200 m² of office space, including a restaurant, and around 190 parking spaces. The investment also issued a one-year rental guarantee.

Dynamic location with encouraging long-term prospects
Boulogne-Billancourt is one of Paris' growth markets, and offers attractive return prospects for long-term investors. Its central location and attractive rent levels in relation to other Paris submarkets are points in favour of this location.

Boulogne-Billancourt has good chances of becoming the fourth central Paris office location, after the CBD, La Défense in the west and Rive Gauche/Bercy in the southeast of the city. The reason for this is the substantial amount of potential space becoming available on the banks of the Seine in the 'ZAC Seguin-Rives de Seine' development area immediately next to the 'Le Prélude' property following the redevelopment of the former Renault factories there. Apartments, offices, retail outlets and public facilities are planned for the around 740,000 m² area on the bend of the Seine by the end of 2012.

Pioneer expands French portfolio
France has been a strategic focus of SEB ImmoInvest since 1997. Investments in the Paris metropolitan area, as well as out-of-town locations such as Chatillon, Meudon and Lyon have expanded the country's share of the portfolio to its current 16 percent of real estate assets. France has the second-largest portion of the portfolio for the internationally invested Fund share after the USA (18.8%).

Source: SEB ImmoInvest

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