ING RE sells offices for a quarter of a billion Euro

ING Real Estate Development has sold offices in Paris and Budapest for approx. a quarter of a billion Euro. It concerns two new office buildings in the M7-project at the Rive Gauche (Paris) and the new Hungarian headquarters of the ING Bank in Budapest.

The two offices in Paris are at the Rive Gauche and are part of the M7-project, with a total of 39.000 m² of offices, over 4.000 m² of retail and 175 parking spaces. ING Real Estate is developing this project in co-operation with Sari Dévelopment based on a design by the architect Cabinet J.P. Viguier. The whole complex consists of three offices, of which the first one will be delivered at the end of this year. This office will be 16.000 m² and has reportedly already been sold to Meag. The building is completely let to the French Ministry of Sports. ING Real Estate will not announce the price but considering an average rent of € 500 at the Rive Gauche, the amount must have been somewhere near € 120 mln. The second office of M& which was sold by ING Real Estate Development comprises 9.500 m². The largest part of this office is let to the French institution Urssaf. The buying party is SEB Immobilien Investment, a German institutional investor. It is said that the sale was arranged at Expo Real in Munich, earlier this month. Considering the usual Paris’ return on investment and let prices, this building will have made ING Real Estate an amount of approx. € 70 mln. The third building of M7 (approx. 14.000 m²) will be delivered in the course of next year. ING Real Estate is talking to several candidates who want to let the building.

During Expo Real ING Real Estate also sold the new headquarters of ING Bank in the Hungarian capital Budapest. The buyer is the Deutsche Bank. The head office is a design by the Dutch architect Erick van Egeraat. The building is situated on the Dozsa Gyorgy Street. The complex consists of 3 office blocks with two transparent atriums and is 23.000 m² and has about 400 parking spaces. 75% of the complex will be let by ING Bank in a sale-and-lease-back construction for a long period. The remaining 25% have a let guarantee by ING Real Estate. Also for this building ING RE will not announce the price but just a return on investment which is 8.5 %. Considering a average let price in Budapest at a top location of € 200 per m², the sales price would be approx. € 50 mln.