The bank has invested euro 1 billion ($1.2 billion) in commercial property for wealthy clients and syndicates in the past three years. "We believe Paris offers an excellent opportunity, says Collins. "At the moment, the vacancy rate in Paris's CBD is 5.4%, with very little planned in terms of future development of quality buildings such as Cité du Retiro. Leasing activity is also picking up. As a result, we are confident of good rental growth over the next few years."
Collins added that BOI Private Banking was pursuing deals in France, Belgium and Scandinavia. "Underpinning this strategy is the fact that yields for commercial property in the UK and Ireland have become more demanding and some of the major European markets now offer investors better value," he states. "Our current advice to clients looking to add to their property portfolios has been to favour European locations such as Paris over the traditional UK markets."
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