Deka Immobilien has acquired an office building in Paris, the 9 avenue Percier building in Paris’ 8th arrondissement, from the French real estate company Société Foncière Lyonnaise (SFL) for €143.5 million.
The Art Deco building was acquired by SFL from Eurosic in 2015 for €67.6 million including transfer costs.
Over the next four years (2016-2019) extensive work was undertaken by SFL to redevelop the building and enhance its market value, leading to a 13% IRR on a 6 years period.
The property has a lettable area of almost 6,300 square meters and eight parking spaces. The space is rented to eight users, with the Swiss insurance group Helvetia being the main tenant.
“This transaction attests to our teams’ ability to create value through carefully targeted work to reposition the Company’s assets and take advantage of the resilient prices commanded by the French capital’s best prime properties despite the Covid-19 crisis,” said Dimitri Boulte, SFL’s Managing Director.
“Having completed our repositioning work, we decided that the time was right to cash in the value created on this medium-sized building ideally located in the centre of Paris’ 8th arrondissement, which represented a poor strategic fit with our portfolio of major business centres,” he added.