Washington Plaza has changed hands for €290, with SFL owning the majority stake in a building which is expected to deliver a gross yield of 6%
French property company Société Foncière Lyonnaise has joined forces with French life insurer Predica to buy the Washington Plaza building in Paris for €290.9m (FFr1.92bn). SFL will own 66% of the 46,000m2 building in the 8th district with Predica, which is part of Groupe Credit Agricole, owning 34%. The buyer expects a gross yield of around 6%, according to an analyst’s note from ABN Amro, which tracks SFL’s activities.
The building, which is fully let, was bought from Japanese investor Kowa. ABN Amro added: “As most tenant leases were signed at the height of the real estate crisis, we believe that the owner bears a large share of the site’s costs. We initially estimate the net yield at 4.8%.” SFL has also announced that it is in advanced negotiations to dispose of a €150m (FFr984m) portfolio of five residential buildings which will help finance the Washington Plaza deal. The average rent in the building is €375 (FFr2,460) per m2 a year so rent hikes are expected to contribute to medium-term growth for SFL. Colliers acted for the vendor.
Also in Paris, Oppenheim Immobilier France, the French affiliate of German company Oppenheim Property Services, has bought Le Christophe Colomb, on rue Madame de Sanzillon in Clichy, for €57.6m (FFr378m) from Eiffage. The property comprises 13,950m2 of offices, 771m2 of light industrial and 720m2 of restaurant accommodation. Around half of the office space has been prelet to marketing agency DRAFT and Alcatel is in negotiations for the remaining space. The first phase of the development was completed in December while phase two will finish in May.
