LONDON, 9 January 2014 – CBRE Global Investors, the real estate investment company, has completed a series of transactions on behalf of one of its separate account clients as part of an active management strategy focusing on enhancing the client’s direct return and diversifying the portfolio across Europe.
The company has completed the sale of Westend Duo, an office building based in Frankfurt, Germany for in the region of EUR240 million. The trophy asset, one of the highest towers in Frankfurt’s business district, currently provides a gross market yield of approximately 5% and was acquired in 2006. The purchaser was Deutsche Asset & Wealth Management.
The proceeds from the sale of the property have been reinvested in two properties in France and Italy. The investments are as follows:
• The 20,996 sqm gallery within the Carrefour Limbiate shopping center in Limbiate, has been acquired for a price around EUR 140 million. The centre is located in the affluent area north of Milan and is 97% let to high quality retailers such as MediaWorld, H&M, and Piazza Italia. The acquisition offers a net yield of around 7.1%.
• EUR11.25 million in a logistic building in Pusignan, France, which lies close to Lyon and adjacent to its airport. The 14,676 sqm property is let to logistics providers Panalpina and Geodis and was purchased for a net yield of 8.1%.
John Ozinga, head of separate accounts Continental Europe, CBRE Global Investors, said: “These transactions reflect the active investment management strategy of our client to repositioning its real estate portfolio. The new investments in high yielding assets highlight that there is a range of attractive opportunities available across continental Europe as a whole.”
CBRE Global Investors has further retail and logistic investments in Italy and Germany under offer for their client which are expected to complete in Q1 2014.
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About CBRE Global Investors:
CBRE Global Investors is a global real estate investment management firm with $87.6 billion in assets under management* as of September 30 2013. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG), and harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services company for the benefit of its investors. CBRE has more than 34,000 employees (excluding affiliates) in more than 300 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.