GLL's Office Fund, on behalf of several European insurance companies, bought the entire property in October 2003 from Generali Assurance Vie France, the fourth largest insurer in France. GLL then began looking for a partner to structure a joint venture, specifically targeting German open-ended funds. DIFA purchased 92, Avenue de France for its open-ended real estate funds DIFA-Fonds Nr. 1.
The joint venture is the first of its DIFA, as it makes use of a recent amendment in the German investment law, which permits open-ended real estate funds to take non-controlling stakes in property companies. DIFA, which had been exploring corporate acquisitions and participations with their advisers in France, already own France Avenue, a development project close to 92 avenue de France.
Generali originally purchased 92 avenue de France as a speculative, turnkey development from Bouygues Immobilier at the end of 2001. Alban Liss, Genrali's head of investment, says there was "very strong" strong interest in the property from the investment community, "but we felt that this was an ideal opportunity to strengthen our professional relationship with GLL."
DIFA's head of acquisitions Michael Montebaur says the building has the advantage of "an attractive, up-and-coming location in a very deep investment market, which has enabled us to secure strong cash flows from an AAA credit tenant." Keith Sutton, managing director of the GLL fund, adds that the qualities of this property, particularly the lease with RFF, make it "a perfect choice for a joint-venture structure."
To effect the creation of the JV and the transaction, GLL was advised by Gide Loyrette Nouel and DIFA by Lefévre Pelltier et Associés and Awon Conseil.
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