Ares Capital Management has agreed a €420m (£298m) deal to buy a pan-European office portfolio from German fund manager IVG.
The 30-asset Project Traction is being sold at a yield of close to 7%. The fund manager fought off competition from Goldman Sachs and Oaktree Capital Management, and has now begun contacting potential funders about financing the deal.
The portfolio is being sold through CBRE.
Investors have become increasingly bullish in the European market and are now more willing to buy portfolios across multiple jurisdictions.
The assets in Traction have a relatively small average lot size of €14m. Its new owner will have to undertake major asset management on the portfolio, which has a vacancy rate of 30%.
It is located predominantly in France (40%) and the Netherlands (35%), with the remainder split across Finland, Belgium, Spain and the UK.
In February, IVG and Ares struck a €100m deal for an eight-asset office/retail portfolio located in the UK, Germany, Sweden, Poland and the Netherlands.
