CBRE Investment Management, on behalf of Zurich Insurance Group Germany, has completed the off-market acquisition of a Grade A office building in Paris from Sogelym Dixence, a French real estate developer.
Financial details were not disclosed.
The property is located at 5 rue de la Baume - Paris 8th arrondissement, in the heart of Paris’s Central Business District (CBD). The asset was redeveloped by Sogelym Dixence in 2008 to create a modern and efficient Grade A office space.
Gautier Beurnier, country manager France at CBRE IM, said: 'This was a unique opportunity to acquire a highly liquid asset in a sought-after location. Despite the uncertainty caused by the Covid-19 pandemic, high quality offices in Paris have retained their appeal and vacancy rates have remained low in this particular location.
'As the global economy continues to recover, we expect demand in both the occupier and investment markets will only grow further for well-located and modern office space.'
Comprising circa 3,300 m2 across five floors above ground level, the building mostly features floor-to-ceiling windows on both sides of the property and includes 32 parking spaces. The fifth and last floor benefits from a circa 100 m2 private terrace.
Riccardo Cobianchi, head of real estate, Zurich Insurance Group Germany, commented: 'We are very pleased to increase our exposure to Paris, the second most invested market in Continental Europe.
'Baume is our third investment in France in 2021 and complements the previous acquisitions in logistics by further diversifying the portfolio geographically and income wise while embedding Zurich's ESG principles in the investment process.
'We are confident in the long-term outlook for France and will continue to look for opportunities to grow the portfolio further.'
CBRE Investment Management was advised by Lasaygues, Linklaters, Reedsmith, Property S², Ramboll, and Longevity. CBRE acted as broker initiating this off-market transaction.