French office-focused SIIC Icade has signed an off-plan agreement with Bouygues Immobilier to purchase its Go Spring development in Nanterre for around 鈧�191 mln.
The sustainable development covers a total floor area of 32,600 m2 spread across two buildings (one of 14,100 m2 to be completed in March 2017 and the other covering 18,500 m2 to be completed at the beginning of 2019 and currently 75% pre-leased) and comprises 539 parking spaces.
Located in the Rueil-Nanterre business area, the scheme was designed by architecture firm Quadrifiore and will benefit from HQE 'outstanding', BREEAM Very Good and BEPOS (plus-energy building) certifications. The deal was carried out at the end of December.
The transaction brings Icade's total commercial property acquisitions for 2016 to 鈧�592 mln, with an average net initial yield of 5.5%. In a statement, Icade said last year's purchases of existing buildings with Core+/ Value add profiles would 'start generating cash flows as soon as 2017', alongside its significant development pipeline.
'The significant transaction volume achieved by Icade in 2016 is an integral part of our strategic plan,' commented Olivier Wigniolle, CEO of Icade. 'It confirms Icade's desire and ability to pursue a very proactive asset rotation policy for its portfolio, both for the office segment and for Icade Sant茅.'
Other office properties acquired last year include the Parissy building located in Issy-les-Moulineaux for 鈧�149 mln and the Arc Ouest office in the 15th district of Paris for 鈧�202 mln.
In its growing healthcare division, Icade Sant茅, two clinics were purchased for a total value of 鈧�66 mln, with an average net initial yield of 5.7%.
The acquisitions were balanced by the sale of four business parks (Antony, Cergy-Pontoise, Evry, Villebon) to an investor represented by AEW for a total amount of c. 鈧�141 mln, and the exit from the Nanterre Seine business park and the D茅fense 3 building for 鈧�145 mln. This allowed Icade to complete it strategy to divest non-core business parks and refocus on its seven main business parks, which it is seeeking to improve in 2017 through a 'Coach Your Growth' marketing and reletting plan.
'These transactions, which were completed in a favourable real estate and financial market environment, will allow Icade to deliver a very attractive total shareholder return in 2016,' concluded Wigniolle. Icade said it forecasts growth of 7% to 8% this year.
