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Case Studies - Office Acquisitions
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Acquisition: 58 Boulevard
de la République, Chatou, Paris
Price: $2.4 million € In March 2008, Cofinance SAS (“Cofinance”) completed the purchase of Building 4, 58 Boulevard de la République, a 4-story 2188m² office building forming a part of the “Espace Lumière” business park (“Office Park”), a 12-building office complex located in Chatou, 1.5km from the Rueil 2000 area, just southwest of La Défense. Access to the owner through industry relationships permitted Cofinance to initiate sale discussions and enter into a purchase agreement, circumventing an open marketing process. The building, constructed in 1992, was 50% leased and its elevator and lobby was owned and controlled by the Office Park’s owner’s association. The plan was to gain ownership and control of the elevator and lobby, renovate the building by installing air-conditioning and updating the lobby and common corridors, and consequently re-lease the building to value conscious service companies that need to be located in close proximity to the Rueil 2000 area. Prior to closing, Cofinance successfully secured the necessary votes from the owner’s association to privatize the elevator and lobby. Investment Highlights
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Located in close proximity to Péri Défense and La Défense office submarkets that combined contains approximately 5 million m² at an average vacancy rate, at the time of closing, of below 6%. |
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Purchased for an average of 1097 €/m² which is below replacement costs. |
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Secured an adjustable rate mortgage through the largest commercial banking group in France for 80% of the total required capitalization. |
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Leveraged IRR is projected to be 28.48% within a Four (4) year period. |
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Office Acquisitions |
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Office Dispositions |
“…this office building is in such a well
established business park that once
renovated, it will offer prudent businesses
a quality low cost alternative to the Rueil
2000 submarket …”
- Jean Claude Pick
President, Cofinance SAS
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