ADIA to sell €1.5bn Paris office assets
The Abu Dhabi Investment Authority is seeking offers for Paris office buildings valued at €1.5 billion ($1.7 billion), according to Bloomberg.
Cushman & Wakefield has been hired to market the properties.
The portfolio comprises three offices located in prime locations in Paris.
The French economy continues to show signs of strength, according to Cushman & Wakefield. Business sentiment surveys are now back at their 2011 levels across all sectors, indicating the recovery is broad-based and more resilient to external shocks. Investors are still keen to deploy capital in office assets with a majority of core and core-plus acquisitions but also a growing number of investors trying to find higher yields in speculative or value-added office projects.
2017 started on a very positive note with €3 billion already invested into the French office sector, representing an 85 percent increase on the trading volumes recorded over the same period last year. More than 60 percent of these deals took place in the Greater Paris Region.
Cushman & Wakefield expects the office sector to gradually improve and both occupier and investor demand are expected to strengthen further in 2017.
ADIA invests funds on behalf of the Government of Abu Dhabi and manages a global investment portfolio of $828 billion, according to the Sovereign Wealth Fund Institute.