German fund manager Union Investment Real Estate has sold the Espace Gaymard office building to French firm Perial Asset Management for just over EUR 38 mln, generating net proceeds of around EUR 5.3 mln. The property is being added to Perial's SCPI POF2 real estate fund.

The asset was acquired by Union in 2002 as a speculative development for its UniImmo: Europa open-ended fund and was completed in 2003. Located in the Euromediterranée submarket of Marseilles, the nine-storey Espace Gaymard building provides 10,600 m2 of almost fully let office space.

'When we acquired the property, Marseilles was still a minor regional office market, but we could see its development potential, especially in relation to the ambitious Euromediterranée port project,' said Karl-Joseph Hermanns-Engel, the member of the management team at Union Investment Real Estate responsible for business outside Germany.

Union Investment still holds the four-star Radisson Blu Hotel in the Old Port of Marseilles, France's second largest city. 'We intend to make further investments in France, not only in Paris but also in the provinces,' added Hermanns-Engel. 'Target markets of particular interest include Bordeaux and Lyons as well as Marseilles.'

CB Richard Ellis and BNP Paribas advised Union Investment on the deal.