DTZ Investors has acquired a fully leased office building in the western suburbs of Paris from CBRE Global Investors, which sold the property on behalf of one of its separate account clients.
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The eight-story Paris-area office building known as Antares was built in 2001 in the Boulogne-Billancourt area that is located west of central Paris. CBRE Global Investors acquired the property in 2007 on behalf of its separate account client, with plans for a major renovation. The company was also able to secure power tool manufacturer Hilti as the property’s long-term tenant. Hilti occupies the entirety of the 10,442-square-meter (112,000-square-foot) office building.
Martijn Hop, senior portfolio manager at CBRE Global Investors, said in prepared remarks that it was a good time to sell the office after the company completed the improvement strategy and landed a long-term, reliable tenant that is paying a strong rent rate.
Paris prospers despite COVID-19
Despite the COVID-19 pandemic’s effects on the global real estate market, the Paris office market remains fundamentally strong, Gautier Beurnier, head of transactions in France for CBRE Global Investors, said in prepared remarks. Beurnier added in a prepared statement that the City of Lights has attracted foreign capital, while maintaining low vacancy rates.
The Parisian development pipeline also remains active, with companies having broken ground on various projects recently. In April, Interxion began construction on a 431,000-square-foot data center development that is being built in three phases. A month later, Ivanhoé Cambridge acquired a 538,200-square-foot office development in the Val de Fontenay section of Paris that’s scheduled for completion in 2022.