The Board of Schroder European Real Estate Investment Trust has announced the exchange of contracts for the purchase of a EUR30.1 million office property located in Saint Cloud, Paris, reflecting a net initial yield of 9.5%. The asset is fully income producing and comprises part of an established office complex in Saint Cloud, a densely populated mixed use area in the west of Paris. The new Grand Paris public transport connection will be completed alongside the building in 2025, which is expected to provide significantly improved accessibility to this part of Paris.
Commenting on the acquisition, Sir Julian Berney, Non-Executive Chairman of the Company commented: “This is the Company’s eighth investment and our second in Paris, the largest and most liquid commercial real estate market in Continental Europe. We continue to identify attractive investment opportunities in our target markets and deploy capital consistent with strategy. We are pleased to add to our existing office exposure in Paris and regard this investment as complimentary to the portfolio, particularly in tenant diversity and at a return profile that is accretive to income distribution.”
The purchase is subject to a waiver of the statutory pre-emption rights in France and is therefore expected to complete at the end of December 2016.
SERE : Schroder European Real Estate buys Parisian office