Gecina signs a preliminary agreement to acquire a building with 5,700 sq.m of space in Paris
Investment of approximately 50 million euros at the heart of Paris
Gecina has today signed a preliminary agreement to acquire an office building in Paris' 17th arrondissement, close to Paris' central business district, from the AVIVA Group. This building, offering 5,700 sq.m of space, was fully renovated in 2008 and has 104 parking spaces. The transaction represents approximately 50 million euros. With immediate annual revenues of 2.8 million euros, the building is close to 90% occupied, primarily by the CBRE Group, whose lease runs through to mid-2017.
Potential synergies with the neighboring building already owned by Gecina
Located at 34 rue Guersant in Paris’ 17th arrondissement, the asset is adjacent to another building that is already owned by Gecina at 32 rue Guersant, which is under redevelopment since the end of 2015, with delivery expected for 2018. The two assets could represent a combined complex with almost 20,000 sq.m of space, which is rare at the heart of Paris, while potentially offering significant operational synergies.
Acquisition in line with Gecina's strategy
This acquisition is aligned with Gecina's strategy, aimed at further strengthening its exposure to Paris' most central sectors and Greater Paris’ leading commercial hubs, where there are growing signs of a rental market upturn. Since the start of the year, Gecina has secured over 200 million euros of new investments in Issy les Moulineaux and Inner Paris. Alongside this, Gecina has sold three office buildings for almost 250 million euros in Suresnes, Neuilly and Rueil-Malmaison.
Since the beginning of 2015, Gecina has secured over 1.9 billion euros of new investments, with an average immediate or future yield of around 5.6%, in the best business districts in Paris and its immediate environment, meeting the profitability, security and value creation requirements for all its shareholders.
On this operation, Gecina was advised by Oudot & Associés and Orféo for the technical section. The seller was advised by Uguen Vidalenc & Associés.
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