French fund manager Amundi has hired JLL to sell a €2.5 billion portfolio of European offices.
Investors can bid on a minority or majority stake in the portfolio, with Amundi staying on as asset manager and possibly owning a minority stake. Investors can also choose the properties and the equity stakes within a predefined range.
The portfolio comprises 10 prime office properties in Paris, Berlin, Hamburg, Frankfurt, Munich, Rotterdam and Amsterdam covering 358,127 square metres of space. Together, they produce €124 million in annual rent. The buildings are generally in “excellent condition with minimal projected capex requirements,” according to the teaser.
The portfolio has a gross net asset value of €2.5 billion, with €798 million of debt secured against the properties.
The sale, first reported by React News, comprises the following properties:
- Ancelle, 2-8 rue d’Ancelle in Neuilly-sur-Seine
- Rocket Tower, Charlottenstraße 4 in Berlin
- 88 North, Riesstrasse 8-26 in Munich
- Cloud, Meester Treublaan 7 in Amsterdam
- New Atrium, Strawinskylaan 3001 in Amsterdam
- Ora, 9 rue Emile Borel in Paris
- BBW, Gräfstrasse 103-109 in Frankfurt
- Valentinshof, Caffamachereihe 8-10 in Hamburg
- Schillerhaus, Schillerstrasse 18-20 in Frankfurt
- De Rotterdam, Wilhelminakade 143-179
The portfolio is a major test of investor appetite for European office properties. Only $9 billion of European offices changed hands during the first quarter of this year, a 74% drop compared with a year ago, according to CBRE. Higher interest rates and restrictive lending has depressed investments. Despite a relatively strong return to office, Europe is seeing a bifurcation in the office market with investors mostly targeting higher quality assets, the property consultant said in a recent note.