Bacardi building

Paragon added to its portfolio a strategically located property in Meyrin

Paragon acquired the Bacardi administrative building measuring 1’510 leasable square meters, on a land parcel of 5’457 m2 from Tradall SA (Bacardi group). The property is strategically located on Route de Meyrin, 267 at the heart of the new mixed industrial 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 up the existing building while studying a redevelopment project for the site as Paragon negociated a pre-emption right to purchase the adjacent parcel.  There is an opportunity to build 33’000 sqm 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 flexibility on pricing and leasing conditions as well as the overall attractively 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%.