Safe investment, the purchase of a building – as a whole or unit-by-unit – attracts an increasing number of private investors. BARNES’ Property Valuation and Assessment team support them by offering all necessary services to optimize their assets: studies & valuation of real estate assets, property acquisition or negotiation consulting, rental management and renting.

BARNES Property Valuation and Assessment is a department dedicated to investors interested in real estate investment, and which caters to institutions (banks, insurance companies, mutual insurance company and large real estate trusts), to private clients acting or not on behalf of a family trust and real estate brokers. “When selling or purchasing property, we act primarily as consultants to our clients,” says Marie-Noëlle Sixtre, Director of BARNES’ Property Valuation and Assessment department. “These building transactions concern the whole building or just part of it, in other words it can be sold ‘as a whole’ or ‘unit-by-unit’. These are well-located office or residential buildings in Paris and its inner suburbs or in the center of major French regional cities. We use all our expertise to study and optimize the best solutions in terms of real estate divestment and investment and to mediate on behalf of our investor clients.”

When selling unit-by-unit, the building is divided and the apartments are sold lot-by-lot, vacant or rented. Tenants can purchase the apartments they are renting during a certain limited time, after which the rented apartments are sold to private investors. In recent years, the concept of unit-by-unit transactions has won over important institutional owners selling off their assets, which in turn attracts many private investors interested in that sector. The rented apartments are sold at distressed prices depending on the rental situation. 

An expanding market, more investments by private individuals

Today, this market is characterized by high dynamism: it is a meeting place for institutions wishing to sell real estate and for private individuals and family trusts willing to invest in that sector. Return on investment is no longer the main criterion: investors are looking for safe quality investments. Buying an existing building is exactly the kind of safe property investment to be considered in the medium to long term. In addition, acquiring a building (or a number of properties in the same place) allows investors to benefit from a 10 to 30 % reduction (when bought as a whole) and a 5 to 15 % reduction (when bought unit-by-unit) compared to the market price. Over the past few years, lot-by-lot sales have attracted a growing number of private investors, with a capital ranging from €500K to €3M, who see the real estate both as a confidence investment and as a supplement to their future pension. Others, who are able to invest €5 to €20M, choose to purchase a building as a whole. “Whatever the type of investment chosen, we meet our investor clients’ needs, we assist them throughout their project,” continues the director of BARNES Property Valuation and Assessment. “BARNES is the first in its field to develop an investment structure specialized in private clients, together with our partners: private banks, solicitors, attorneys, asset managers… This structure has legal and administrative departments and a high-quality studies/analysis/valuation team, in addition to its own sales force and marketing/advertising. For our clients, it means a safe investment and a high-quality service throughout the process of selling or buying property.”

In Paris and its inner suburbs, the market for buildings sold unit-by-unit is currently divided into three categories :

• One third of the apartments are sold to the tenant/lessee.

• One third of the apartments are sold vacant to future occupants.

• One third of the apartments are sold tenanted to private investors: investors who benefit from a discounted price and recover the apartment for their own use once the tenant leaves or genuine property investors who will keep the property rented for several years.

Welcome to the BARNES Investment Club

Eventually, BIC – BARNES Investment Club – will bring together a number of privileged clients of BARNES Property Valuation and Assessment, private investors with €5 to €20M to invest in buildings as a whole. “The Club’s aim is to offer its members a high-quality individually-tailored service and provide advice, information and invitations to events in the real estate investment sector”, explains Marie-Noëlle Sixtre, director of BARNES Property Valuation and Assessment. An exclusive service for VIP clients, members of BIC: BARNES’ Exclusive Club is scheduled to open by the end of this quarter.

Contacts :

BARNES Property Valuation and Assessment : immeubles@barnes-international.com

Marie-Noëlle Sixtre – Director (Tél : +33 (0)7 86 45 44 35 / mn.sixtre@barnes-international.com)

Olivier Brunet – Senior Consultant Analyst  (Tél : +33 (0)6 11 01 40 07 / o.brunet@barnes-international.com)