Round-up of Biggest Real Estate Deals in Paris in December
December has seen a number of transactions take place in and around the capital, with investors from Germany and Norway acquiring large office and commercial properties. Here are the biggest real estate deals in Paris from the last month.
The Eiffel Tower Society (STE) acquires 85,000 m2 of office space in Nanterre
In the Parisian suburb of Nanterre, located to the west of La Defense, a deal worth 145 million euros has been concluded between the STE and Icade. The property is made up of the Defense-Nanterre-Seine Business Park and the office building ‘Defense 3’, and has the potential to bring in around 9.4 million euros a year in rent. The price paid makes it one of the most significant real estate deals in Paris of 2016.
Norwegian sovereign fund invests 1 billion euros, adding to existing Paris portfolio
The Norwegian sovereign wealth fund – the largest in the world – has acquired a 26,800 m2 building from Trajan Luxembourg and Trajan Luxembourg II. Made up of 80% offices and 20% commercial space, it is located on the rue de Saint-Honoré and the Place Vendome, iconic Parisian locations for high-end shopping.
Prior to this transaction, 54 properties in France have been acquired by the fund, totalling just over 2 billion euros (19.8 billion Norweigan Krone).
Aviva Investors make two large purchases
Aviva have acquired the pipeline “Moods” building from Solegym Dixence and Europequipments, which will be in the northern suburb of Saint-Denis. Set to be completed in 2019, this 30,325 m2 building will be mostly office space.
Francois Grandvoinnet, of Aviva, said, “We are delighted with the latest addition to our property portfolio, the ‘Moods’ building, which will provide a nice balance between the new generation of commercial property and traditional Haussmann buildings of the past.”
And in the 8th arrondissement, the group has acquired a large office ensemble on the Rue de Lisbonne, next to Saint-Lazare train station.
German fund buys 5,560 m2 office building on the rue de Faubourg Saint-Martin
The German fund Real I.S has acquired a large office building located at 85-87 Faubourg Saint-Martin, in the 10th arrondissement. The building is home to the French classifieds and community website, leboncoin.com. Savills France advised Real I.S on the deal, the value of which was not disclosed. Real I.S also acquired a smaller office space on the Rue de la Banque, in the 2nd arrondissement.
“The Delta”, the old headquarters of La Poste in Bolougne-Billancourt, finds a buyer
Formerly home to La Poste and the OECD, this 25,000 m2 office space on the Seine has, according to immo-week.com, found a buyer at long last. The building is currently owned by Tishman Speyer, an American property company who have been looking to offload the property for several years. Expect more details to follow in the new year.
This latest round of real estate deals in Paris caps off a strong year for the commercial real estate market.
image © Wikicommons