- Union Square scheme purchased from AEW
- Recently refurbished office building located in Rueil-sur-Seine business district of Paris
- UBS-AM to implement a bespoke enhancement programme reflecting value-add strategy of the fund
UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) has completed the acquisition of an office asset in Paris from AEW. The acquisition has been financed with a loan facility provided by BayernLB (Bayerische Landesbank).
Located in the heart of the established business district of Rueil-sur-Seine, in the western suburbs of Paris and adjacent to the Rueil-Malmaison RER A train station, Union Square is a 7,977 sqm office scheme incorporating a ground floor, seven upper levels and two basement floors. The scheme has a BREEAM In-Use certification, and incorporates 182 parking spaces, 750 sqm of private gardens and restaurant and café amenities for occupiers.
The building, which has excellent technical fundamentals, is over two thirds let, with tenants including global supplier of paints and materials PPG Industries, leading international pharmaceutical packaging company Sofrigam, and building insulation provider James Hardie. A number of international businesses are also based in the immediate vicinity, including American Express, BNP Paribas, Novartis, Heineken and Unilever.
Gijsbert van Riemsdijk, Head of Transactions EMEA at UBS-AM Real Estate & Private Markets, commented: “This is an asset that offers income potential that aligns with our investors’ return targets considering the current market conditions. Union Square, which meets all our criteria as a value-add investment opportunity, represents an excellent acquisition in an area of Paris which has high demand for quality and economic office space and not enough supply.”
There is considerable scope to enhance the asset and we look forward to upgrading the property, focusing on the large private gardens, communal spaces and amenities, which will further strengthen the occupier appeal of the building. We have just secured a new tenant Midas for approximately half of the current vacant space, and with occupier interest continuing to prove strong, we are confident of leasing the remaining space to secure full occupancy of the building in the near future.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS's strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.
Headquartered in Zurich, Switzerland, UBS has offices in 52 countries, including all major financial centers, and employs approximately 60,000 people. UBS Group AG is the holding company of the UBS Group. Under Swiss company law, UBS Group AG is organized as an Aktiengesellschaft, a corporation that has issued shares of common stock to investors.
Asset Management is a large-scale asset manager with a presence in 22 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second largest fund of hedge funds manager and one of the largest real estate investment managers in the world.