Cordea Savills, the London-based private equity real estate firm, has acquired an office in Paris for €48 million.
The firm said the office building was acquired on behalf of its European Commercial Fund from Germany’s GLL Real Estate Partners which sold it on behalf of an international separate account.
The building on the corner of Rue Scribe and Rue Auber has domestic and international tenants including the French government. The asset was purchased at a net initial yield of 5.3 percent, it added.
The firm also revealed German institutional investors had made recent equity commitments to its fund, which is targeting a further €100 million of deals by the end of the year.
Thomas Guetle, director of institutional business, said in a statement: “The fact that we continue to raise equity for our European Fund confirms not only our strategy to focus on the core markets in Western Europe but demonstrates also the trust and alignment of interest investors have with our fund and investment team.”
The European Commercial Fund targets low risk investments in commercial property in the largest economies in the EU.
Target markets are France, UK, Nordics, Benelux, Italy, Spain and Germany. The Fund has an income focus and targets stable annual distributions of at least 5 percent and a net total return of at least 7 percent after fees and taxes.