Toronto based, Inovalis Real Estate Investment Trust (TSX:INO.UN), is buying two office properties located in the Greater Paris Region (Paris and Saint Ouen) for CDN$61 million.
The real estate trust (REIT) said that one of the properties is a five-storey office, with two underground levels, in the 14th district of Paris (also known as “arrondissement de l’Observatoire”), situated on the left bank of the River Seine.
The second property it will be acquiring is a four building development, located in a suburb north of Paris, called Saint-Ouen – about 6.6 kilometres (4.1 miles) from the center of Paris.
“The Acquisitions will be acquired at a weighted average capitalization rate of approximately 7.4% (after giving effect to a one-year vendor lease on each property entered into with the vendor) and are expected to be immediately accretive to the REIT’s AFFO per unit of the REIT “
In total the leasable area for the two properties is almost 200,000 square feet, with with a portfolio occupancy rate of approximately 90% on the office space comprising the properties, and a weighted average lease term of 5.9 years on such space.
The buildings were recently appraised with a value of CDN$66 million. Inovalis said that it was able to buy the properties at a seven percent discount. The company currently owns an interest in five properties in France and Germany comprising 746,700 square feet (69,370 square metres) of gross leasable area.