Goodbody Stockbrokers has made its first foray into the property market in mainland Europe with the €90 million acquisition of the Paris head office of Hermes International, the luxury goods group known for its silk scarves.

The acquisition, made on behalf of one of the broker's private clients, comes a few days after it emerged that Goodbody is paying €169 million for one of the most prominent office developments in the City of London.

The 60,000 sq ft nine-storey Paris building is situated on Rue de la Ville L'Eveque in the 8th arrondissement in the heart of the city's central business district. It is close to some of the premier retail streets, including Rue du Fauborg St Honore, where Hermes has its flagship store.

The property has been refurbished and is being fitted out by Hermes, which has signed a nine-year lease on the building.

The deal was financed through a loan from AIB's Paris office.

Hermes, which also includes brands such as Jean Paul Gaultier, has annual sales of more than €15 billion. The group's shares trade on the Paris Stock Exchange, where the company has a value of more than €11 billion.

Gillian O'Dowd, who negotiated the deal on behalf of Goodbody, described the property as an excellent investment.

"This property has all the elements we seek in a prime investment," she said, adding that as well as being in a prime location it was also in pristine condition. "We are very confident that it will be an excellent investment for our clients."

Goodbody last year expanded its property team to facilitate transactions such as the Hermes building deal. The group is seeking to provide a diversification opportunity for its clients as well as taking advantage of the growing demand for office and retail space in Europe's major cities.

According to Goodbody, occupancy and investment activity in the Paris office market is buoyant, with demand particularly high in the city's business district, where vacancy levels are as low as 5 per cent.

David Clarke, head of the property team, said that the group would continue to look for suitable investment and development opportunities. It was currently in advanced discussions on property projects in Germany and the UK.

The London property, a 120,000 sq ft speculative scheme at One Lothbury, next to the Bank of England, was bought on behalf of a small number of Goodbody's high-net-worth clients.