DB Real Estate has bought several properties in London, Paris and Budapest for a total of €310m for its new closed end fund Metropolis I. The fund has equity o €170m and aims for a 6% initial yield, which will rise to 6.25% from 2013, the company said.
In London the fund bought the 15,500m2 UK headquarters of US construction firm Bechtel, which is let until 2014. In Paris, it bought the 21,700m2 Le Colisée building from DB Real Estate’s open-ended fund for €140m, which is let to Citroen and Gaz de France until 2009. The Budapest acquisition was the 26,000m2 Park Atrium building, for €62m. It is around 78% let to ING, which provided a 40-year guarantee for the unlet space.
