MAJOR EUROPEAN INVESTMENT PROPERTY DEAL ACHIEVED WITH SUCCESSFUL FORWARD PLANNED SALE
Date : 29 November 2010
Independent global property consultants Knight Frank Ireland has successfully completed a major deal in the European investment market with the realisation of a forward planned sale of a French investment property for €26.16 million on behalf of Irish wealth asset managers, Custom House Capital.
The property, Le Patio, is a new build single 8-storey office building in Marseilles, which was acquired originally by Custom House Capital as a speculative investment development in a forward funding deal three years ago. Situated in the central Prado area in the Marseilles’10th district, the Le Patio development comprises about 8,920sq.m of office space with 94 basement car park spaces.
This prominent city centre development was purchased in January 2007 on a site and build contract from one of France’s largest developers, Bouygues Immobilier. Knight Frank Ireland, then Ganly Walters, handled the acquisition on behalf of Custom House Capital.
Delivered by the developers in late 2008 and now let to French corporations / public bodies CPCAM, EDF and BPI, Le Patio has been sold to DEKA Immobilien GmbH for €26.16 million net to vendor to realise the asset investment. Le Patio represents DEKA Immobilien GmbH’s first investment in Marseille. It was also one of Custom House Capital’s first acquisitions in France and is its first disposal there.
“The transaction was now timely in line with Custom House Capital’s strategy to secure quality tenants prior to disposal”, said Paul McDowell, managing director of Knight Frank Ireland and head of its investment department.
“Le Patio was acquired with the investment strategy of asset disposal at the premium time on completion of the building and its letting. Buying on a forward funding basis and opting for the Marseilles market, which has remained fairly stable, has enabled us to carry out our strategy”.
“This sale certainly vindicates investment in some of the major French cities outside of Paris, which are much less volatile to market stress conditions so investment property continues to perform well. The Le Patio investment has performed very satisfyingly and largely in accord with our expectations three years ago”.
Knight Frank was represented by both its Dublin and Paris offices who worked closely together to achieve this successfully completed transaction.
The vendor of Le Patio was advised by Simmons & Simmons, SCP Faucon, Louvel, Le Breton, Le Falher, Nourry & Dequesne and EC Harris. The purchaser was advised by Freshfields Bruckhaus Deringer, Jusot & Associés and Ingérop.
Further information:
Paul McDowell, Managing Director and Head of Investment, Knight Frank Ireland at Tel: 01 6623255
Sandra McDowell, McDowell & Associates PR, at Tel: 0402 21576 / 087 2564350