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Inside the Market / Big Deals

Abu Dhabi Investment Fund Looks to Offload Huge Paris Real Estate Portfolio

abu-dhabi-real-estate-paris-la-defense-fyltyr

The Abu Dhabi Investment Authority has announced its intention to sell its 1.5 billion euros of Paris real estate, taking advantage of increased demand in the capital. 

The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund with around half a trillion in holdings globally. Their Paris portfolio comprises of 1.5 billion euros of office buildings, and it recently emerged that these will be sold off, perhaps to take advantage of a period of particularly high demand.

Recent figures showed that the office real estate market in France had an impressive start to 2017, with 27% more office space commercialized in its first quarter than in the same period last year. Some of those with significant holdings in the capital have decided now is a great time to sell. ADIA have entrusted commercial real estate brokers Cushman and Wakefield with the mammoth task of selling their portfolio.

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Boulevard Haussmann © Wikicommons

One of the crown jewels of the ADIA’s portfolio is the 24,000 m2 office building at 6-8 Boulevard Hausmann, which has been leased to the French investment bank BPI France since 2013, the year ADIA acquired the building from Swiss bank UBS. Significant holdings also lie in the suburbs La Defense, Nanterre and Antony. The fund also co-invested in the Alto Tower, a skyscraper currently under construction in La Defense.

The UAE counts for about a third of Middle East investments into France, while Qatar and Lebanon represent about 18% each. This move should not be seen as a wider departure of Middle Eastern capital from the count, which if anything will increase with the pro-business rhetoric of France’s new president. Little has been revealed, but it is most likely simply a tactical re-pivoting from the sovereign wealth fund while demand for Paris real estate is high.

image © Wikicommons

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