LONDON (Alliance News) - Schroder European Real Estate Investment Trust PLC on Tuesday said it has agreed to buy a EUR37.5 million freehold office property in Paris at a net initial yield of 5.7%.
The asset is "fully income producing" and has a "prominent location" in Boulogne-Billancourt, a densely populated and established office area in western Paris, the company said.
"We have secured the group's first investment soon after launch. The acquisition is fully in line with the strategy to own institutional grade, income producing assets in major cities," Chairman Julian Berney said.
The purchase is subject to a waiver of statutory pre-emption rights in the French market and is therefore expected to complete at the end of the March 2016.
Shares in Schroder European Real Estate were up 1.2% at 110.85 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Schroder Eur.r (SERE)