Citadel, the French property arm of London-based CLS Holdings, has acquired a 7,357-m2 office building at 7 rue Eugène et Armand Peugeot, 92500 Rueil Malmaison from Corio. The consideration inclusive of all costs was EUR 33 mln. The property, built in 1988, was partly refurbished in 2005/06, and substantially refurbished in 2009. It is located to the west of Paris, in Rueil-Sur-Seine, an attractive and well established office area with excellent transport links both by road and rail, including a mainline station situated adjacent to the property.

The building is multi-let with existing rental income of EUR 2.7 million, yielding 8.3%, and will provide a return on equity of 16.1%. The cash return on equity of 10.2% is based on a newly completed ten-year loan facility with Société Générale of EUR 21.7 mln. About 95% of the cash flow is secured for three years from large corporate tenants, and 43% is secured over six years.

The deal was financed by a EUR 22 mln loan provided by French bank Société Générale. Savills advised the seller.