Deutsche Bank's asset management arm DWS has forward funded a Grade A office property, B-Square, in the Greater Paris area of Seine-Saint-Denis.
The deal was executed on behalf of its institutional, open ended core real estate fund, Europe II.
Financial details were not disclosed, but DWS said that the deal marked the fund’s fifth acquisition, bringing its gross asset value to an estimated €786 mln.
On completion, the property will comprise 9,500 m2 of office accommodation and an anticipated HQE excellent certification. Development is expected to complete in October 2021, at which time a tenant in the construction industry will take occupation of approximately 42% of the space.
'This acquisition demonstrates our continued focus to invest in emerging office locations in key European cities serving a diversified range of tenants looking for a vibrant environment to further grow their business,' said Ronen Ribak, head of transactions, Europe.
Nicoletta De Bona Bottegal, portfolio manager, Europe II said: 'Positive fundamentals of this emerging Parisian submarket align well with Europe II’s investment strategy as the fund expands into locations with strong occupational demand and expected rental growth.
'We will continue to selectively seek opportunities to capture capital appreciation in core locations across Europe.'
The transaction follows Europe II’s acquisition earlier this year of a prime high street retail property located in one of central Dublin’s key retail streets. In 2018, Europe II jointly purchased a large residential portfolio in the Netherlands; it also acquired a portfolio comprising six logistics assets across France, and carried out the joint purchase of a Grade A office in Stratford’s International Quarter London (IQL).