Hamburg-based Union Investment Real Estate GmbH has acquired the office building A4C in Paris Rive Gauche in a transaction worth some 177 million. The vendor is asset manager Standard Life Investments.
The 25,400-m² A4C in Paris Rive Gauche is fully let.
Completed in 2006, the fully let property offers total rental space of 25,400 m². Main tenant Natixis is a business bank and part of BPCE, France's second largest banking group. It uses the prestigious building on the Quai d'Austerlitz as its corporate headquarters. The head lease with Natixis for 97% of the space runs for nine years with a special right to give notice after six years.
"In terms of the current market cycle, the A4C building presents an ideal opportunity to re-enter the Paris investment market," says Dr. Karl-Joseph Hermanns-Engel, member of the Union Investment Real Estate GmbH management team. The purchase of A4C further diversifies the French portfolio of UniImmo: Deutschland and will serve to boost the fund's strong performance.
A4C benefits from good transport links, being situated close to the Gare d'Austerlitz main line station. Its prime location is underlined by the high visibility of the main façade from Avenue Pierre Mendès France, the district's main artery. One of the most attractive submarkets in Paris, Rive Gauche is ideally suited to companies seeking substantial blocks of contiguous space in modern, flexible buildings. A4C is extremely well placed to meet the demands of this target group," says Dr. Hermanns-Engel.
A4C was one of the first buildings in Paris to be certified in accordance with France's HQE (High Quality Environmental) standard, in 2005.
Union Investment Real Estate GmbH has invested some 1 billion in acquisitions since the start of the year. Benefiting from a strong capital base, the property fund manager is taking advantage of anticyclical investment opportunities, particularly in the European core markets.
Source: Union Investment