UBS Asset Management's Italian real estate business acquires Parisian retail portfolio for EUR250m
UBS Asset Management has completed the acquisition of a prime luxury retail real estate portfolio in the heart of Paris, France for EUR250 million.
The three-asset high street portfolio was acquired via the alternative investment real estate fund, UBS (I) Diamond Eurozone Offices (UBS-DEO), which targets Core and Core Plus investment opportunities in prime locations within top eurozone cities.
The three assets are located at numbers 12, 14 and 48 of Avenue Montaigne in the eighth arrondissement of the French capital. The renowned street forms part of Paris’ exclusive ’Golden Triangle’, location which comprises some of the world’s most prestigious high street retail offerings. At 615 metres in length, the entirety of Avenue Montaigne is dedicated to luxury and high-fashion retailers, drawing a high footfall of affluent local and international shoppers. The location is easily accessible via a range of public transport options and is adjacent to Avenue des Champs-Élysées.
Each of the unique portfolio’s three properties are leased to international high-fashion retailers, benefitting from strong covenants and long-term agreements. The location meanwhile remains in high demand amongst leading brands keen to be prominently positioned within the growing global luxury tourism industry.
The pan-European UBS-DEO fund is managed by UBS and reserved to Poste Vita, the Italian insurance company. It is characterised by a core return profile, aiming to generate stable, diversified returns over the long-term. Investments are focused on high-quality properties with solid covenants delivering mixed-use income, and situated in prime locations within leading European cities. The Fund was recently awarded the Green Star classification by GRESB, which also attributed the highest 5-star rating to the Fund's portfolio of assets under management on account of their strong ESG performance.
Marco Doglio, Head of Real Estate Italy at UBS-AM Real Estate & Private Markets, says: “This unique portfolio comprises three exceptional and well-let assets in one of the world’s most sought-after ultra-prime shopping destinations. Paris continues to attract record tourist numbers, while strong demand continues from the best brands for this esteemed location. These factors align perfectly with the Fund’s goal of generating strong and stable returns over the long-term.”