Allianz completes joint venture acquisition of two Paris office developments for EUR415.6m

Allianz Real Estate has acquired two manage-to-core office developments in Saint-Ouen, Paris, on behalf of several Allianz group companies.

The transactions, both 50:50 joint ventures with a leading French public financial institution, are forward purchases with a total value of EUR 415.6 million. For Allianz Real Estate, the transactions support its focus in tier 1 cities and represent an opportunity to invest in a promising area.

“These two exceptional office assets are located in a first-class and fast-growing district near Paris and underline our intention to expand our portfolio while integrating the highest environmental and technological standards. The acquisition reinforces Allianz Real Estate’s strategy to strengthen our presence in Europe’s key cities,” says Alexander Gebauer, Chief Executive for West Europe, Allianz Real Estate.

Strategically located in  Saint-Ouen, the gateway to Paris, the developments are at the foot of the RER C train line and the future metro line 14. This very attractive business complex of approximately 60,000 sqm offers very competitive rents compared to Paris and represents a unique opportunity for blue chip companies wishing to relocate to a strong micro-location.

Developed by BNP Promotion and Emerige, two well-known French developers, this major urban project will be completed in Q2 and Q4 2021. It will also offer the highest standard of environmental certification, including Label Effinergie BBC 2017, BiodiverCity and HQE New Excellent, placing tenant well-being and sustainability at its core. Allianz Real Estate has recently invested in other projects deploying ‘smart’ technology such as the redevelopment of Allianz’s historic headquarters in Milan, Corso Italia 23, and the forward purchase of the two buildings in Germany –Edge East Side Berlin and Edge HafenCity Hamburg.

Saint-Ouen is also one of the most dynamic real estate and business environments in the Grand Paris and currently home to international companies including L’Oreal, Danone, SAGE and Samsung. It is expected to see a mixture of numerous office, retail and residential projects, adding yet more value to the surrounding vicinities.

“Paris has one of the strongest and most interesting markets in Europe magnified by projects such as the Grand Paris,” says Sébastien Chemouny, Head of France at Allianz Real Estate. “We are constantly looking to tie available opportunities with our strategy to increase our exposure in cities with such potential while building strong long-lasting relationships with our business partners.”

Allianz Real Estate manages EUR 32.4 billion of office assets globally, of which EUR24.1 billion are in Europe. In the firm’s recent Cities That Work 2019 report into European office markets, Paris was ranked as the number one ‘core’ city. It is regarded as one of Europe’s most liquid office markets, with the second-highest average investment volume over the last 10 years. The vacancy rate in the central business district also hit a record low of 1.8% at the end of the second quarter 2019, the lowest level since late 2001.