Past performance is not a guide to future returns. An illustrative example. The presented asset is closed to new investors.

Overview

An ultra-core real estate investment located in the heart of Paris “Central Business District” and the Avenue des Champs-Elysées which is known as one of the most popular retail destinations in the world. The property is a prestigious Haussmann-architecture corner building initially erected in the late 1880´s during the construction of the Avenue des Champs-Elysées.

The letting market in such an exclusive location as the Avenue des Champs-Elysées usually attracts very creditworthy tenants, seeking prestigious premises suitable for their headquarters. The strong demand for prime retail space and quality office buildings in Paris “Central Business District” combined with the limited supply facilitates significantly low vacancy rates.

Background

  • Unique investment of a mixed-use trophy asset on the Champs-Elysées in Paris, a permanent location for both offices and retail.
  • The investment seeks to offer capital preservation with an ultra-core risk profile however with great opportunity for value creation given the retail units are under-rented offering upside potential.
  • The building is 100 % occupied and offers a stable income stream from diversified tenant profiles and sectors with a total of 9 tenants.
  • Acquisition realised at advantageous pricing conditions during the outset of the Covid pandemic.

Key metrics

Location

71-73 avenue des Champs-Elysées, 75008 Paris, France

Investment strategy

Mixed-use Trophy Asset / Core Investment

Sector

Mixed-use (office & retail)

Gross leasable area

5,705 sqm

Acquisition date

Dec-20

Holding period

 10 years

Tenants: Retail I Office

3 I 6

Insights

17 July 2024

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

UK Real Estate: Talking points July 2024

Political stability, rebased pricing, falling inflation and the expectation of rate cutting are collectively expected to provide a more supportive environment for UK real estate.
Read time 2 min
21 June 2024

James Coke

Fund Manager & Co-head of Institutional UK Real Estate

Emma Gullifer

Assistant Fund Manager

Green to gold: realising opportunities from the carbon transition

We explore the interventions required to monetise green energy, and how investors might benefit from the carbon transition.
Read time - 2 min
22 May 2024

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

UK Real estate – Overview Q1 2024

Total returns for the UK commercial property market turned positive in Q1 2024.
Read time - 3 min
25 April 2024

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

UK Real Estate: Talking Points April 2024

Our quarterly snapshot of current real estate market trends.
Read time - 2 min
15 February 2024

Hans Nordby

Head of Research & Analytics, Real Estate (US), Lionstone Investments

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

2024 Global Real Estate Outlook

What's in store for real estate in 2024? Global megatrends and financial conditions will impact returns and sector allocation.
Read time - 4 min
12 December 2023

Assia Amore

European Fund Manager, Real Estate

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

The resurgence of Europe’s luxury high streets is gathering momentum

High street retail markets across Europe are benefitting from the solid recovery of tourism, both international and domestic.
Read time - 3 min
22 December 2022

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

Real Estate: Preserving Value

There was a definite air of positivity in European real estate markets in January and February 2022.
Read time - 4 min
14 March 2022

Solutions Enhanced: Capital Market Assumptions 2022 Making a transition

The end of 2021 saw a continuing reminder of the impact of coronavirus, inflation occurring in major economies, and the world waking up to the stark choices presented by the climate emergency. We set out the expectations for what all this could mean for investors over the next five years and in the longer run. These capital market assumptions form the base case we use when constructing strategic asset allocations for clients.
Read time - 3 min
15 December 2021

James Coke

Fund Manager & Co-head of Institutional UK Real Estate

UK Real Estate: how to follow a record 2021?

James Coke looks at how the UK market might follow a record 2021, and while we don’t expect next year to deliver comparable capital value growth, it is likely to witness similar positive supply and demand dynamics which should maintain market momentum
Read time - 3 min

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