News and Media

New Parisian property for Custom House Capital

CUSTOM House Capital (CHC), the Irish wealth management company, has purchased a mixed-use office and retail building in Paris for 32.42m. Property consultants Knight Frank's Dublin office negotiated the acquisition of the state of the art Futura building on the company's behalf.

The six-storey over basement property extends to 7,737sq m (83,280sq ft) with 7,179sq m (77,274sq ft)in office space and the remaining 558sq m (6,006sq ft)in retail.

Two underground car parks provide space for 152 vehicles.

The property is located in a western suburb of the French capital. SaintQuentin-en-Yvelines is regarded as an important business hub and is home to a number of international companies including Amazon, BMW, Nissan, Bougues and Renault.

The office space is let at an annual rent of 1.705m on a nine-year lease to a single blue chip tenant, Assytem, a Paris stock exchange listed international developer of products for the automobile, aeronautical and energy sectors. The retail area is allocated for a restaurant/bistro.

Acquired for 32.42m (inclusive of costs), the property's gross yield is 5.8% (net initial yield is 5.26%).

The total annual rental income will be 1.705m, with a rental guarantee in place on the unlet ground floor space, which is currently under negotiation.

CHC acquired the property for a number of private clients. Company chief executive, Harry Cassidy says:

"The acquisition adds to our already growing French portfolio. Our investors are strongly attracted by the net initial yield on the property, which compares very favourably to yields achieved elsewhere in the Paris region."

©2008 The Sunday Tribune