Funds News

Hines buys $166mln Paris office off Tishman Speyer

LONDON, July 20 (Reuters) - Hines said on Friday that it had bought a Paris office building from fellow private U.S. real estate firm Tishman Speyer for 120 million euros ($165.7 million).

A London-based spokesman for Hines declined to disclose the yield on the deal or the rental income generated by the asset.

But he said Hines, which already owns the 40-storey EDF Tower in Paris’s western La Defense business district, was also close to buying a second Paris office.

He said he was concerned by the frothy state of commercial property markets in leading European cities such as Paris after an extended price boom and said it was more crucial than ever to pay attention to the individual merits of each building.

“We cannot understand how people are paying extortionate prices without looking carefully at the underlying fundamentals,” he said.

In an earlier statement, Hines said the Luxembourg-listed Hines Pan-European Core Fund (HECF) had bought the 15,420 square metre (166,000 sq ft) Eurosquare office in St. Ouen, on the northern part of the Paris ring road.

The building is fully leased to a wholly owned subsidiary of Gaz de France GAZ.PA until 2013.

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