Barings has sold 9 Rue du Helder, an office building in Paris, on behalf of a pan-European value-add real estate investment strategy for institutional investors, to a French institutional investor.
Having acquired the c. 1,700 sq m asset in 2018 when it was vacant, Barings obtained a building permit and undertook a comprehensive refurbishment of the property, repositioning it as a unique Grade A office building with BREEAM and HQE ‘Excellent’ ratings, in line with the strong ESG focus of the value-add strategy.
Whilst the works were ongoing, Barings pre-let the entirety of the space to a global fashion brand on a nine-year lease, ten months ahead of completion.
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Situated in the ninth arrondissement, 9 Rue du Helder is in the heart of Paris’ CBD in the Opera sub-district and provides public transport connections through its close proximity to the Opera and Saint Lazare train stations.
“When we acquired 9 Rue du Helder back in 2018, we saw an opportunity to leverage its sought-after location in an area of Paris where there is a chronic shortage of available high quality office space. Following the implementation of our asset management strategy to transform the property into a Grade A office, which included delivering an extension and roof terrace with exceptional views over the Opera district, we have now realised our business plan in just two and a half years. During this time our expert local team on the ground also fully let the building to a new tenant, securing rent ahead of our underwriting assumptions during the COVID-19 pandemic,” said Severine Maumy-Laffineur, Managing Director and Country Head Real Estate France.
“This sale, at a prime yield, is in line with our value-add strategy and delivers a significant profit and strong returns for our clients. Having entered the French market three years ago, this is the second realisation we have achieved on behalf of our value-add strategy after the sale of a logistics property in Le Coudray-Montceaux, also in the Paris region. It demonstrates the ongoing demand for institutional grade office investments and our ability to execute in times of market uncertainty. We are still looking for value add opportunities in both the logistics and office sectors in France and across Europe in 2021, with an additional focus on the residential build to rent and student housing sectors,” added Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings.