Principal Real Estate, the real estate investment arm of Principal Global Investors, and Atream, the French real estate private equity business, have acquired the Urban Garden office building in Lyon from HIG Capital for more than €150 million.
The 29,927 sqm office building in Lyon was completed in May 2021 and is fully let to top quality tenants with a combined WALT of 8.4 years.
Urban Garden comprises five buildings with the highest standards of specificities, including large open areas, leisure spaces, terrasses, and external gardens.
Urban Garden has also strong sustainable credentials, excelling in several areas, including a BREEAM Excellent rating, R2S, Biodivercity and Osmoz labels.
Principal operated on behalf of the Principal European Office Fund (PEOF) and Atream on behalf of a club-deal of French institutional investors comprised of Caisse d’Epargne Rhône Alpes Foncière, Caisse d’Epargne Normandie, Caisse d’Epargne Loire Drôme Ardèche, Caisse d’Epargne Loire Centre, Groupama Rhône Alpes, CARAC, SCI CARAC Perspectives Immo and SCI Atream Euro Hospitality.
Commenting on the acquisition, Guillaume Masset, President, and Head of Transactions and Asset Management Europe at Principal, stated: “It’s been great to partner in joint venture with Atream on this acquisition. Urban Garden is a prime office asset, let to strong covenants on long leases. Built to high environmental and sustainability standards, it is well-suited to the future evolution in office use in Europe, incorporating servicing as well as large open spaces and natural light inside and out. This is an excellent example of the type of core asset we’re looking to acquire for Principal’s European Office fund.”
“We are delighted to announce along with Principal Real Estate Europe the acquisition of the Urban Garden property in Lyon, a modern asset which meets the highest standards in terms of services and tenants well-being. The ongoing “ISR” ESG labelling process matches the ambition that Atream carries in all its projects in regards to sustainable investment. We are proud to be able to support the development of such assets at the heart of the real economy of our large regional cities”, said Pascal Savary, President of Atream.