Propreal pockets c€99m from sale to Geneva pension fund

Swiss investor Propreal Capital Partners has sold a central Geneva office asset to the Geneva state pension fund for CHF 102 million (€99 million). The proceeds of the sale have increased Propreal’s war chest to €300 million of available capital which it said it will use to acquire more pan-European property assets.

The sale to Caisse de Prévoyance de l’Etat de Genève (CPEG) followed the letting of the 7,070 sq m building at Boulevard de la Tour 8 to Geneva University Hospitals. The space was previously occupied by BNP Paribas which terminated its contract early.

“Our successful restructuring of the existing lease with BNP Paribas brought a government-backed tenant on board for a 20-year term in an office market that is still feeling the after-effects of the Covid-19 pandemic,” saidPropreal founder and CEO Yves de Kerdanet. “This paved the way for a deal with CPEG to acquire the property and terminate the co-ownership structure. Altogether this transaction has helped to unlock substantial investment value.”

Propreal Capital Partners recently raised €150 million for a new closed-end fund, PCP European RE Fund I, to invest in real estate assets across Continental Europe. The fund is targeting prime and value-add investments across office, hospitality, logistics and retail sectors. The company is also active in Germany, France, Spain and the UK.