PGIM Real Estate acquires The Square in Paris
PGIM Real Estate has acquired The Square, an iconic 7,000-square-meter office building located on 7-7 bis rue de Téhéran, Paris, on behalf of its pan-European discretionary value-add fund.
The seller was a German closed-ended fund managed by GLL Real Estate Partners, a member of Macquarie Group. PGIM Real Estate is the real estate investment business of PGIM, the USD1 trillion global investment management businesses of US-headquartered Prudential Financial.
The property is situated in the heart of the central business district, between boulevard Haussmann and Parc Monceau, in an area sought after by financial, law and consulting firms, and luxury companies. The property has been fully let to Parfums Christian Dior since 2007.
Built in 1928 and fully refurbished in 2007, the property is distinguished by its iconic Art Deco façade, dual, naturally-lit inner courtyards and glass-roofed entrance hall. It also features efficient floorplates, a communal area in the basement illuminated by a light well, and terraces and balconies accessible on several floors.
Jocelyn de Verdelon, PGIM Real Estate’s head of France, Spain and Portugal, says: “This acquisition, in the form of a complex corporate transaction, illustrates our capacity to win tenders and offer vendors flexibility and security in deal execution. In addition, the property’s prestigious location, impressive façade and abundance of natural light will appeal to the exacting demands of institutional tenants.”
Brigitte Schmale, fund manager at GLL Real Estate Partners, says: “This asset delivered excellent returns over the 12-year holding period for the shareholders of the fund and outperformed the business plan despite buying near the peak of the last cycle. It is a great example of what asset selection, hands-on local asset management and a focused strategy can achieve.”
PGIM Real Estate was advised by Cheuvreux Notaires, De Pardieu Brocas Maffei, Accuracy, and Builders & Partners. Financing was provided by Crédit Agricole CIB.
GLL Real Estate Partners was advised by JLL & Catella, Wargny Katz, Gide, Reed Smith and Exponens.