Purchase of Paris office and logistics centres is US investor’s biggest European deal
A record €500m deal for US institution TIAA-CREF led a busy month for the Paris investment market.
In its largest European acquisition yet, TIAA-CREF, advised by Invesco Real Estate, has bought a €493m portfolio from Standard Life Investments. The acquisition comprises: Triangle de l’Arche, a multi-let, 37,500m² office in La Défense; Villabe, a 200,000m² logistics scheme south of Paris; and Bruyeres-sur-Oise, a 120,000m² logistics scheme north of Paris. Standard Life funded all three projects’ development.
Robert Lipscomb, head of the Paris office of Cushman & Wakefield Healey & Baker (CWHB), which introduced the deal to TIAA-CREF, said: “The company wanted to increase its Paris holdings and this provided an interesting opportunity. Being a substantial investor, TIAA-CREF wanted to invest significant funds in what it sees as a very stable market.”
Meanwhile the Carlyle Group has bought a large site in Montrouge Paris for €175m in a move showing that investors are ready to take on leasing and development risk in the improving Paris market. The site, bought from Schlumberger, is close to the city centre and has more than 70,000m² in 12 buildings, of which 25,000m² is occupied, plus the potential for 20,000m² of development.
“We believe there is a market for larger space,” said Eric Sasson, managing director at The Carlyle Group. “We only bought the site two weeks ago and have two tenants looking at taking the whole thing.”
Investor confidence in the Paris market has come on the back of good take-up figures, although much of this has been due to companies consolidating into new space and moving to suburban locations.
“The volume of deals could be similar to last year but we should start to see net take-up,” says Lipscomb. Atis Real Auguste-Thouard also reported that new demand has shown a 13% rise compared to 2003.
