26 March 2018
Union Investment purchases EuroAlsace office building in Paris from Commerz Real
Commerz Real has sold its Euro Alsace office building in Paris to Union Investment. Located in the 10th arrondissement close to Gare de l’Est station, the property has been held by Commerz Real’s closed-ended real estate fund CFB 165 since 2007. Union Investment acquired the office building for its institutional open-ended real estate fund UniInstitutional European Real Estate. The purchase price was not disclosed.
The sole tenant of the six-storey property is French state-owned railway company ÉPIC SNCF (Établissement Public à Carac-tère Industriel et Commercial Société Nationale des Chemins de Fer Français). Dating from the late 19th century, the building comprises a total area of approximately 16,000 sq m. In 2016, the company extended its lease for the entire space ahead of expiry until 2024. “That laid the foundation for us to achieve a solid result for our investors,” said Heiko Szczodrowski, head of Portfolio Management Asset Structuring at Commerz Real.
“Situated next to Gare de l’Est, the property is highly central. Among other key locations, Gare du Nord, Europe’s busiest rail-way station with more than 210 million passengers a year, is within easy reach,” said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate GmbH. “Since Paris’s central business district is expanding, we expect the micro-location to become even more attractive in the future. As an investor with a focus on the long-term, we therefore anticipate the property continuing to generate strong rental income.” Following the transfer of the Euro Alsace office building, Union Investment now holds 17 office and retail properties in France worth a total of approximately EUR 2.8 billion.
Commerz Real was advised on the transaction by real estate consultancies Knight Frank and BNP Paribas Real Estate and on legal and tax aspects by GGV Grützmacher Gravert Viegener. Union Investment was advised on legal aspects of the deal by Thibierge & Associés and Clifford Chance, and on tax aspects by PWC.