• The property is located in central Paris (10th Arrondissement) between Gare du Nord and the textile sector know as “Le Sentier”.
  • The immediate environment is typical of the pre-haussmannian period with dense constructions, small façades and deep plots.
  • The sector is a mix of residential, light industrial activities and hotels.
  • The closest metro station is 500 metres from the property.
  • Accessibility by car is difficult during peak hours because of one-way streets.

Key Statistics

Purchase Date December 2006
Floor Area 2,597m2
No. of Tenants 6
Void Rate 40% (28% for retail and basement units)
Disposal Date October 2011

Key Management Issues at Purchase

  • The property is located in a district of Paris traditionally associated with the clothing industry and at purchase most of the occupiers were light industrial users.
  • 400m2 of storage area on basement (16% of the property) was vacant.
  • 1,530m2 had been vacated by five tenants.
  • Common entrance for cars and people.
  • Significant security and refurbishment works required.
  • Vacant premises on lower floors were dark and difficult to re-let for office use.


  • Over four years Rynda has had a strategy of replacing tenants with office occupiers who appreciate large floor plates and the gentrifying location e.g. architects. This repositioning of the asset to “trendy” office lofts has changed the rental profile of the building.
  • The change in passing and market rent between purchase and 31/03/11 is shown below:
Purchase 31/03/11 % Increase
Net rent €187,789 €260,311 38.6%
Market rent €197,200 €277,140  40.5%


  • In June 2010, the client sold to an owner-occupier the ground floor and basement units (722m2) for €850,000, 45% higher than net purchase price.
  • The remaining parts of this property were sold to a private investor in October 2011 for a net price of €3,450,000, 
a 4.1% premium compared to the last valuation, and a 126.7% premium compared with the net acquisition cost.

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