Korean Hyundai’s new JV with La Française buys first asset

Hyundai Investments and La Française’s first acquisition, in Essen.

Korean company Hyundai Investments and La Française have acquired their first asset for a newly established joint venture. The two firms plan to build a portfolio of medium-sized modern offices in the established business districts of targeted cities in Germany, Belgium, the Netherlands, Luxembourg and Ireland.

Called HILF Euro Office JV the risk profile of the portfolio will be core/core+ according to a statement by La Francaise Real Estate Managers which represents the joint venture.

The first acquisition is a fully let office building in Essen, Germany. The deal is a sale-and-leaseback transaction with RWE, one of the largest energy suppliers in Germany. The duration of the lease is 17.5 years. Located at Altenessener Str. 27 in the north of Essen the asset is part of the RWE Campus, which comprises several office buildings owned by or let to RWE.

The six-storey property, completed in 2009, has 11,754 sq m of office space and a 2,949 sqm energy trading floor.

La Française Real Estate Manager managing director David Rendallsaid the new strategy “seeks to diversify the exposure of Korean investors to office assets which are modern and well let in both major and tier-2 European cities.”

“The business plan for the joint venture will consider opportunities for asset management of the portfolio over a holding period of up to eight years. Further acquisitions are planned over the next 12 months,” he added.

Shawna Yang, Director of Real Estate Investor Relations for Asia added, “La Française continues to attract South Korean capital to the European real estate market which shows positive signs both in terms of valuations and rental values.”

La Française is a subsidiary of Caisse Fédérale de Crédit Mutuel Nord Europe (CMNE).

La Française has worked with Hyundai previously and in 2018 acted on behalf of Hyundai Investment Asset Management and a group of Korean securities companies, to acquire Le Balthazar, an eight-storey office building in Saint Denis, Place des Droits de l’Homme, close to the Stade de France.