German bank MünchenerHyp has provided a €64 million loan to an open-ended fund managed by Aviva Investors and LaSalle Investment Management for the purchase of a Paris office building.
The bank has provided the loan to the fund, Encore+, for the acquisition of 69 Boulevard Haussmann, located in the central business district of the French capital.
The asset was bought for €128 million, in a deal which closed in January, implying a 50 percent loan-to-value financing by MünchenerHyp.
The building contains 7,400 square metres of office space which is leased to four tenants including UBS as the anchor tenant.
Encore+ was established in 2006 and is solely focused on institutional investors. The fund targets core and core-plus properties in Europe and is mainly invested in office, retail and logistics properties. MünchenerHyp has previously provided financing for two Encore+ deals.
“We are very pleased that we again had the opportunity to prove our ability to provide competitive financing in the fiercely contested French market,” said Jan Peter Annecke, head of commercial real estate finance at MünchenerHyp.
“My team maintains an ongoing dialogue with leading property lenders in Europe, which enables us to always find the most appropriate financing partner for every property investment. MünchenerHyp’s very attractive financing package put them at the top of our selection process,” said Roberto Carrera, European head of financing at LaSalle.
“The income profile and risk characteristics of this asset make it an attractive option for the Fund to secure external debt in its financing structure. We are pleased that in MünchenerHyp we have once again found an outstanding partner for Encore+,” added Jeffrey King, fund manager of Encore+ at Aviva Investors.