Norway’s oil fund has bought Le Madeleine office and retail complex
The world’s biggest sovereign investment fund, Norges Bank Investment Management, has bought Le Madeleine building in Paris for €425.6 million ($570 million) from a fund managed by Blackrock Inc.
The 31,500m2 office and retail complex is located at the corner of the boulevard de la Madeleine and the rue Duphot, in the 1st arrondissement, in the heart of Paris’s financial district. La Madeleine church stands opposite. The building has undergone a complete refurbishment since Blackrock Europe Property Fund III acquired it in 2009.
Le Madeleine started life as the Aux Trois-Quartiers department store in 1932. Work on the refurbishment started in 2012. The façade was completely remodeled, combining 1930s and modern styles, and was clad with white Carrara marble. The makeover also included new retail areas, enlarged windows and a double height entrance to the offices. A stylized tree by French designer Ora-їto has pride of place in the lobby.
The building was renamed Le Madeleine following the renovation. The three retail tenants are C&A clothiers, Décathlon sporting goods and perfume and cosmetics store Marionnaud.
The Norwegian oil fund is worth €665 billion ($890 billion) and will invest almost €7.5 billion ($10 billion) annually in real estate over the next three years. It already owns property in some of the world’s most prestigious locations, including Regent Street in London, New York’s Times Square and the Champs-Elysées in Paris.