Swiss Life Asset Managers is set to acquire a Paris CBD prime office portfolio from Terreis. The companies have signed a memorandum of understanding for a total of 28 core office properties valued at €1.7bn. Transfer of ownership is expected to take place by Q2 2019. 90% of the portfolio is the Haussmann architectural style buildings are mainly located across the 1st, 2nd, 8th, 9th and the 10th district. Today, these areas are preferred by diversified companies from luxury to new technology industries.
Paris counts as one of Europe’s most sought after real estate markets, with low vacancy rates and rising rents in the office sector. Furthermore, new office developments are rare in the French capital. This applies in particular to the CBD area where supply only increased by 6% over the past 40 years. This scarcity of supply further enhances the attractiveness of the Paris market.
Frederic Bol, CEO France of Swiss Life Asset Managers, says: "We are proud to secure this exceptional portfolio in the Paris office segment, which is highly sought after by our clients. The availability of major transactions in Paris is limited and the assets we are seeking to acquire are currently a rarity in the market. We are thus providing to our clients' unique access to the Paris CBD office market and enable them to invest in high quality, rarely accessible buildings, in prime locations but with a reversionary rent potential we can capture via our asset management."
