Schroder Real Estate completes sale of Paris office property

21/11/2018
ParisBusiness

Schroder Real Estate is today announcing the sale of a 50% share in the Chevaleret office building, resulting in a significant net return to investors.

The sale – completed on behalf of Immobilien Europa Direkt (IED), an investment group of Zurich Investment Foundation – was made on the basis of an asset valuation of €230 million.

The Chevaleret office property is located in the 13th district of Paris, adjacent to the Paris Rive Gauche submarket, one of the most sought-after and dynamic areas for offices in the city.

Schroder Real Estate purchased the share in the 24,000sqm 9-storey building on behalf of IED in April 2014, having originally been identified as a significant value-add opportunity. The investment was part of a joint venture with French insurance company Malakoff Médéric.

The building, which was c. 60% pre-let at acquisition, underwent a complete €42 million restructuring and refurbishment (ie. €1.750/sqm), which was delivered on time and within budget, with full occupancy being reached before delivery in January 2016.

Thomas Guyot, Head of Real Estate Investment France, said:

“This sale is evidence of the skill and expertise of Schroder Real Estate for value-added investments, having identified this asset as an attractive investment opportunity five years ago. The significant net proceeds and strong investment returns to investors is a very positive outcome and reinforces Schroders’ view that active asset management can deliver superior risk-adjusted returns.”

IED, was launched by Zurich Investment Foundation and has been designed specifically for Swiss pension schemes.

Its investment strategy is focused on providing investors with a diversified portfolio of high-quality commercial real estate in Europe’s most attractive real estate markets.


For further information, please contact:

Nicole Carey            Tel: +44 (0)20 7658 4466/ nicole.carey@schroders.com

 

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