IVG Immobilien AG is investing â¬92 million in the 'Parc Avenue' property in Paris. The seven-storey office and business premises with 15,300 mÂ² of lettable space will be completed by the beginning of 2007 in the Avenue de France 82-90, to the east of the Gare dÂ´Austerlitz and close to the future site of the Denis Diderot University and a court of higher instance (Tribunal de Grande Instance).
Parc Avenue is one of the final projects in the 'Paris Rive Gauche' district, which has a particularly high growth rate. Over the last ten years, 900,000 mÂ² of office space, 500,000 mÂ² of residential space and 200,000 mÂ² of retail space have been developed there. Well-known companies such as France Telecom, SAP and SNCF have established themselves in this office location. The level of rent is currently between â¬38 and â¬42/mÂ² per month, clearly higher than the average Paris rent of â¬26/mÂ². IVG bought this property from the French project developer Sorif, belonging to the construction group Vinci.
'Paris continues to be one of IVGÂ´s preferred locations for investment in Europe. We are expecting increased demand over the next few years for office space in Paris as well as a stable investment market', comments Bernd Kottman, IVGÂ´s head of portfolio management, on the acquisition of the Parc Avenue property.