Paris Office Portfolio

Office, France

Lexin acquired a portfolio of three Class A office buildings located in Ille-de-France in 2005 from a German institutional seller. The properties which are approximately 250,000 square feet are located in Ile-de-France, the region encompassing Paris, which is characterized by strong absorption and stabilized low vacancy rates. At the time of the acquisition a single tenant occupied a majority part of the building and had a short term lease maturity. The acquisition price reflected that uncertainty.

Based on extensive market research Lexin was able to underwrite that risk and then re-tenant that space with multiple tenants within a year at much higher rental rates than the original tenant. The portfolio was sold successfully in 2007 to another European owner based on the stabilized and higher property cash flow.