In a renewal of acquisition activity, Société de la Tour Eiffel has committed to the speculative forward purchase of an office development in line with its portfolio strategy focused on green suburban offices at reasonable rents.
The project is located in the near southern suburb of Montrouge at rue Maurice Arnoux opposite Evergreen, the new campus style headquarters of Crédit Agricole. It offers 5,000 m² of offices with basement parkings. The all-up cost is approximately 25 million with an expected return of 7.5% upon delivery in Q1 2013. The vendor was the Vinci Construction group.
This move up the risk curve reflects the company's belief in the future for new space and in the wake of an encouraging level of leasing activity on the core portfolio so far this year.
- Grenoble-Montbonnot, Viseo
Cegelec has taken 3,100 m² of offices on a closed six-to-nine-year lease whilst Thales, already tenants in the property, has taken an extension of 300 m². The recently delivered 11,500 m² property is no w 92% let at an average passing rent of 140/m².
- Nantes, boulevard Einstein
BNP Paribas Lease Group has taken 1,000 m² of offices on a six-to-nine-year closed lease. Accenture Technology already tenants of the building has taken a further 600 m² extension. The rental value is in the 90 120/m² range.
- Lyon-Vénissieux, Parc du Moulin à Vent
Gunnebo has leased 850 m² on a six-to-nine-year closed term at a rent of 120/m² in this Parc Eiffel business park.
"The company continues to rejuvenate its portfolio (62% new or under 10 years old) through the in-house development of our site reserves and forward purchases. We aim to increase our presence in the Paris region with modern green office buildings at moderate rents which increasingly represent the core of our portfolio.
"Whilst the letting market remains subdued, these assets invariably lease successfully whereas undersupply is widely anticipated for this sector in the medium term," says Robert Waterland, Managing Director of Société de la Tour Eiffel.