London-based real estate investor AEW has bought an office complex in Paris on behalf of the German public pension fund, Rheinische Versorgungskassen.
Originally built in the 19th century, the complex was redeveloped in the middle of last century, and comprises one nine-storey property and a six-storey building on an adjacent street. It was acquired from German real estate investment company, Hansainvest Real Assets.
The complex provides 3,470 sqm of retail and office space. The retail space is let to Carrefour City and the office space is fully let to seven tenants from a “well-diversified” range of sectors.
This is the first transaction for AEW’s separate account mandate, which focuses its investment strategy on French office and retail assets.
Marc Langenbach, head of funds and separate accounts at AEW in Germany, said: “We continue to monitor a pipeline of opportunities as we look to grow the portfolio in Paris, where we are confident in the long-term outlook for one of Europe’s leading cities.”
The mandate has a total investment capacity of between €250 and €300 million, including leverage of between 40 to 45%.
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