Invesco and RedTree acquire Tour Cedre in Paris
Invesco Real Estate (Invesco) and RedTree Capital have acquired the 29,400 sq m Tour Cédre in La Défense, a major business district in Paris.
The Class A office property, which was constructed in 1998 and is 100 per cent let to single tenant EDF, the French electric utility, was acquired through a joint venture acquisition between two of Invesco’s close-ended higher-returning funds: Invesco Mortgage Recovery Fund II and European Value Add Fund, and RedTree Capital.
Cristiano Stampa, Senior Director – Transactions at Invesco, says: “Tour Cédre offers an exciting opportunity for Invesco to acquire a mid-sized tower and in a location which is seeing increasing demand. We are also delighted to announce our co-investment partnership with RedTree Capital who will be working alongside our experienced on-the-ground asset management team in Paris to deliver value creation opportunities during the hold period of this actively managed asset.”
Eric Sasson, Founder at RedTree Capital, says: “This transaction is a milestone in the development of RedTree Capital, our first deal in La Défense. Our partnership with Invesco on this project presents an exciting opportunity for our firms to collaborate on actively-managing this iconic asset.”
Kevin Grundy, Managing Director – Fund Management, Higher-Returning Strategies at Invesco comments: “To achieve returns in a low-growth environment means we are increasingly looking at interesting ways of investing to achieve higher income, leading us to pursue strategic growth in the space. We look forward to utilising our 30 years of value-add experience as well as RedTree Capital’s value-add experience to turn Tour Cédre into a truly exceptional asset in the local market and, ultimately, potentially increasing the performance returns for our higher-returning strategies.”
In this acquisition, Archers, UGGC, Clifford Chance and Etude Notariale Vachon acted for Invesco Real Estate and RedTree Capital. The asset was acquired from WestInvest InterSelect, a German open-ended real estate fund, advised by JLL.