Tamar European Industrial Fund has sold a portfolio of three light industrial buildings situated in the Paris region, to a private investor (PCVI Group), for a total consideration of 7.45 million, reflecting a price that is close to the Fund's latest March 2010 valuation.
The three assets are located in the Parisian suburbs of Tremblay-en-France, St Leu-la-Foret and St Ouen l'Aumone. The portfolio provides a total area of 11,745 m² and is fully let to 11 tenants. The total gross rent is 723,471 and thus the price reflects a net initial yield of 9.00% on the gross purchase price. The majority of leases are on traditional nine year terms with three yearly tenant break clauses, with the latest letting, concerning the asset in Tremblay-en-France, renegotiated by Tamar to existing tenant, Still, the forklift truck manufacturer, on a new nine-year firm basis.
This latest TEIF asset sale follows the recent disposal of the two assets in Finland for a combined total of 20.7 million.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "This sale demonstrates continued investor demand in the light industrial sector. Tamar has successfully implemented its asset management strategy which has resulted in a successful outcome for the Fund. The sale also shows stability in investment values and confidence in the Fund's latest valuations."
BNP Paribas Real Estate advised TEIF on this disposal.