Boulogne-Billancourt is located south-west of Paris in the Hauts-de-Seine department between Paris and the River Seine.

Boulogne has 109,400 inhabitants and is the second largest town in the Paris agglomeration.

Boulogne is an established office location with a strong tenant base of IT and marketing companies, such as TF1, TBWA, Young & Rubicam.

The Paris ring road is 2km east of the property.

Key Statistics

Floor Area 4,690m2
No. of Tenants 5
Passing Gross Rent per Year €1,081,453
ERV €1,263,405
Void Rate 9%

Asset Overview

The property is located in a high quality residential area providing privacy to tenants.

The property consists of two buildings dating from the 1960s, an older small gatehouse and 83 external car park spaces. The front building (building A) comprises 1,938m2 of office accommodation; the rear building (building B) comprises 2,653m2 of light industrial space; and the gatehouse (99m2) used to be for residential use.

The main tenant Japan Tobacco International (JTI) used to occupy the whole of building A and 63% of building B, i.e. 77% of the total property.


  • After several months of negotiations with JTI, two new leases were signed with JTI, starting on 1st November 2010. The first lease, of 2,647m2, is a 9 year and 8 month lease, with a firm period of 6 years and 8 months, at a rent of €762,000 pa (€288/m2), compared to a market rent €254/m2. The second lease, 249m2, is a 3/6/9 year lease at a rent of €62,000 pa (€249/m2), equal to the ERV of €249/m2. No rent free period was granted.
  • As part of the lease agreement, the client committed to capex works, including the air-conditioning replacement 
in buildings A and B, and refurbishment of JTI’s premises. The cost was €467,000 in 2011 and €500,000 in 2012. These are capex works which would have had to be completed if JTI had left and the premises were refurbished to a marketable standard.
  • JTI has paid the Fund €150,000 to refurbish vacated premises and will also finance façade cleaning, replacement of external blinds, refurbishment of lifts and disabled access conformity works.
  • Negotiations are on-going to let half of the vacated premises of (712m2) to Vitalliance, a former sub-tenant of JTI.
  • For building C, Rynda was granted approval from the local authority to change the use from housing to offices and plans to sign a new 3/6/9 year lease with IMCOR on the whole building (99m2) at the ERV.
  • Globally, this package of lease re-structuring and capital expenditure has allowed the client to maintain a high occupancy rate and to secure rental income. The valuation rose by 6% despite a fall of 30% in the passing rent due to the greater term security of income.

Find out how we can work together

If you are an institution or investor interested seeking investment opportunities in real estate across Western Europe – please contact us.