2015-12-31-莱坊-The_investment_market_Q3_2016_12页_518kb

Q3 2016 Investment Market Summary for Île-de-France CBD

• Overall Investment Volumes: Total investments reached €5.6 billion in Q3 2016, showing a 7% increase compared to the previous quarter. This growth was driven by nine large transactions over €200 million, accounting for 40% of the total volumes invested.

• Geographical Distribution: The CBD and La Défense continued to dominate the market. The CBD specifically saw a 77% increase in investments compared to the same period in 2015, attracting 27% of total volumes invested in Ile-de-France during the first nine months of 2016. Other areas like the inner rim and outer Paris saw decreases.

• Prime Yield Trends: Prime yields in the CBD stabilized at a historic low, ranging from 3% to 3.25%. This created a squeeze on yields across other regions, such as La Défense, where yields fell below 5%. Investors showed greater interest in Core+ and Value Added assets due to the widening gap between asset classes.

• Asset Type Breakdown: Office assets remained dominant, making up the majority of investments in Q1 to Q3 2016. Retail and other assets accounted for smaller portions, with a slight stabilization in distribution.

• Investor Nationalities: The share of investments from French investors decreased from 71% to 66%. Key growth was seen in investors from Korea, Singapore, and a return of American buyers, reflecting diversification in the market.

• Key Transactions: Notable deals included the sale of a CBD portfolio by Société Générale, purchases by foreign entities like Abu Dhabi and Qatar, and other significant office and retail acquisitions.

• Risk Profile: Core and Core+ assets attracted the largest investment share, with a re-concentration on large deals over €200 million. Smaller transactions saw a decline.

Overall, Q3 2016 demonstrated resilience in the Île-de-France investment market, with CBD leading growth and prime yields providing a strong premium over bond yields.