NEWS ARCHIVE

TARGETFOLLOW ANNOUNCES €22 MILLION FRENCH REAL ESTATE INVESTMENTS | 18/10/06

In a two-pronged assault on the French property market, Targetfollow Group, the owners of London’s iconic Centre Point, are investing more than €22 million in two commercial projects in Paris and Toulon, South of France.

The property company, which earlier this month (July) acquired Tolworth Tower in Kingston-upon-Thames, is buying the freehold of two multi-let office buildings, totalling 13,000 m², in the Parisian suburb of Montreuil, for €17 million, producing 8% yield.

Both are five-storey properties and among the 27 tenants are SR Teleperformance and Groupama Banque, both quoted on the Paris Stock Exchange. The properties generate an annual rent of Euro 1.4 million. The vendor was SNC Montreuil.

Targetfollow’s property advisors were King Sturge, solicitors DLA Piper, and notaries, le Breton Associes.

Targetfollow has also announced that it has entered into a joint venture partnership with Real Land to develop three two-storey office buildings, totalling 4,300 m², at almost €6 million, at the Parc d’Activites de la Millonne, Toulon.

Ian Fox, Targetfollow’s Executive Director of Property, said: “France has become one of the largest markets for commercial property investment in Europe and we are looking at a number of exciting real estate investment opportunities.

“We have been greatly encouraged by the fact that there is a resilient letting market in France which continues to outperform other European cities.”

He added that Montreuil, nine kilometres east of the centre of Paris, was undergoing a strong economic revival and attracting a broad diversity of employers among its 650 new companies.

Commenting on the Toulon development, he said: “We are extremely pleased to be playing such a major part in this innovative development. Working with Real Land, we have been able to establish a workable structure for joint ventures and we will look to use this as a foundation for future developments on the Continent.”

Nick Hill, Group Managing Director of Real Land, said: “I am delighted to be working with Targetfollow on this exciting project, which has generated considerable interest in the marketplace. In fact, one of the office buildings has already been sold to Scutum, a major French national company specialised in the provision of security services”.