UBS Asset Management invests cEUR43m in Paris office property
UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) business has acquired a prime office building in Paris, France for a total cost of cEUR43 million.
The property was purchased on behalf of the UBS (I) Zurich Italy – Real Estate Fund (UBS-ZIREF) from a private real estate investor and represents the second addition to the Fund’s French offices portfolio following the acquisition of Open 6, an office-led property in Lyon, earlier this year.
Spread over six stories, the attractive Haussmannian building was originally constructed in the early 20th century and recently benefited from an extensive refurbishment by the vendor- which offers high-end specification. The office-led asset totals 1,532 sq m, including approximately 300 sq m of ground floor retail space let to a major multinational supermarket chain. The property has been acquired fully let with a good covenant mix of tenants active in various sectors, including retail, fashion and consultancy, and presents an institutional-grade investment proposition on account of its high quality, prime location and diversified tenant roster.
Located at 14 Avenue Franklin Delano Roosevelt, in the prestigious 8th Arrondissement of Paris’s thriving Central Business District, the property benefits from a wealth of retail and leisure amenities within its immediate vicinity and sits adjacent to the renowned Avenue des Champs-Élysées. The asset is well connected thanks to a wide array of public transportation options, including the Saint-Philippe du Roule Metro station which is just a short walk away.
The pan-European UBS-ZIREF fund is managed by UBS-AM and reserved to Zurich Investments Life SpA, a fully owned subsidiary of Zurich Insurance Group. The Fund is characterised by a core return profile, aiming to generate stable, diversified returns over the long-term. Investments are focused on high-quality office properties with the potential to provide stable rental returns, situated in prime locations within Italy and selected eurozone markets.
Gijsbert van Riemsdijk, Head of Transactions Europe ex CH at UBS-AM Real Estate & Private Markets, says: “This prime acquisition offered the rare opportunity to gain access to a core office property benefitting from a highly-sought address in a leading global city. Our ability to conclude this transaction amidst the challenging economic backdrop is testament to the expertise of our local team, while our conviction in the strong underlying fundamentals of the Paris office market gave us the confidence to proceed. The asset’s highly defensive characteristics, clear visibility of income streams and longer-term upside potential align with the Fund’s goal of generating resilient returns for our client.”