The acquisition consists of a freehold commercial office building in Pantin, a dynamic banlieue (suburb) just on the boundaries of Paris and the next centre of art and culture. High-grade tenants on long lease basis occupy the property.
The asset structure is a Shariah-compliant and tax efficient. In addition, the building has multiple of accesses to the Central Paris area, and well-connected through metro and train stations, which are walking distances from the building.
TFI European Fund, launched this year, was given the successful closing of two assets in major European cities. TFI continues to pursue further acquisitions over the next few months to grow its presence and achieve high-yield return circa 6%-7% profit rate annually net to investors. The assets risk base is low as compared with high risks in other low interest rate universe.
TFI, together with its alliance and partnership with Inovalis France, have growing aspiration to the European markets and therefore continue to identify other quality assets in to take TFI Euro Income Fund to higher level. Germany and France represent potential hub for foreign companies who may migrate from the UK due to the Brexit.
In addition, France recently won the Olympic votes to hold the next round of the Olympics in 2018. This is an encouraging sign to the real estate sector in France, TFI said. “The First Investor and Inovalis consider assets in key European capitals to be comparatively cheap and that the pace of supply is modest as compared with demand. Therefore, investors and global funds eye more investment especially as Brexit uncertainty prevails and this is manifested by recent rise in the Euro currency,” a TFI senior executive said.