iii-Investments Buys Paris Offices
A Paris office building has been acquired by iii-Investments on behalf of a special fund held by a German pension scheme. The 2,064-square-metre property was acquired for €17.5 million.
“The Paris office market is still attractive. Although the sovereign debt crisis has reached France and has resulted in rising government bond yields there, prices for office properties in the Paris CBD have remained stable over recent months due to the shortage of core investments,” says Reinhard Mattern, managing director of iii-Investments. “Therefore, we were pleased that we could acquire such a property. In France, investors are still taking advantage of a yield gap between real estate and government bonds. Furthermore, as a result of the small number of completions, we expect a slightly increasing rental market in the Paris CBD.”