Paragon increases its foothold in Meyrin
Paragon acquired the Bacardi administrative building measuring 1’510 leasable square meters on a land parcel of 5’457m2 from Tradall SA (Bacardi group). The property is strategically located on Route de Meyrin, 267, at the heart of the new mixed industrial and commercial zone, a few meters away from the tramway and a few kilometres from the highway and airport.
Bacardi vacated the property in the spring of 2018. Our business plan involved leasing the existing building while studying a redevelopment project for the site as Paragon negotiated a pre-emption right to purchase the adjacent parcel. There is an opportunity to build a 33’000m2 gross floor area on the combined parcels, and a triple-A anchor tenant has already been identified in the case of a redevelopment project.
Meanwhile, Paragon attracted tenants to the site thanks to the flexibility in pricing and leasing conditions as well as the overall attractiveness of the location. The rent roll stabilized at CHF 550’000, yielded approximately a 6% return, which was improved after leverage. In 2019, Paragon sold its position in Para-Meyrin, generating an IRR above 40%.
