Business
Inovalis Real Estate Investment Trust announces it has completed the acquisition of an office property in Greater Paris in a joint-venture with IGIS' Fund
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About this update from Inovalis Reit
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, July 9, 2015 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) announced today that it has completed the acquisition, on a joint-venture basis, of an office property (the \"Property\") located in Greater Paris, for an all-in-cost of approximately €90 million (C$ 125 million), representing a going-in capitalization rate of 7.2% (before leverage). The addition of the Property will be immediately accretive to the REIT's AFFO per unit.  The joint venture is an acquisition with IGIS' Fund, which is subscribed by Samsung Securities, a highly reputable international partner and is managed by IGIS Asset Management of South Korea. \n\nDavid Giraud, Chief Executive Officer of Inovalis REIT, commented that this investment is \"in keeping with our expansion and partnership strategy for Inovalis REIT. Samsung Securities is an important global real estate player, wanting real estate opportunities that take advantage of the macro improvements in the French economy.\"\n\nThe Property, located in Arcueil (Paris' first Southern periphery), France, is a freehold, ten-storey 330,681 square feet office building with 253 parking spaces and is fully let under a lease expiring in March 2023 to an investment grade rating tenant. \n\nThe REIT is acquiring a 25% equity interest in the Property while IGIS' Fund is acquiring the balance 75% equity interest. The REIT will have the option to purchase IGIS' Fund's participation from July 2nd, 2018. If eventually the asset is sold, the REIT will receive 75% of the profit generated by the transaction. \n\nFollowing this acquisition, the debt to gross book value of the REIT remains below 55%.\n\nThe Property has been acquired from Curzon Capital Partners II, a fund managed by AEW Europe.\n\n\"As with our past transactions, Inovalis REIT has proven to be an excellent investment partner and Inovalis a high quality full service real estate funds management solution for international investors,\" said David Giraud. \"We will continue to seek out similar investment opportunities in the REIT's targeted European markets and work with our international investment partners to expand profitably the REIT's asset base \".\n\nAll amounts have been converted to Canadian doll...