Slough Estates International ("SEI") has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5 million, net of acquisition costs.
The 10.9ha property provides 53,000 m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of 1.4 million. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.
The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value.
SEI's Managing Director in Europe, Walter Hens, said: "This acquisition not only guarantees a solid return from the leaseback element of the property but also provides the opportunity to develop one of the only sites with prominent frontage onto the A86. We strongly believe in the future development of the light industrial market to the north of Paris and through acquiring this well located income producing land bank we ensure that our future development pipeline complements our existing developments."
The transaction reinforces Slough Estates International as a major investor and developer in the Parisian industrial market and complements the existing development pipeline in the Northern Paris market. La Courneuve is an important part of the 'friche industrielle' (industrial tissue) which spreads between Northern Paris and Charles de Gaulle Airport and includes a number of business parks.
Source: Slough Estates
