SEDCO Capital partners with Inovalis Group to acquire the Convergence Building in Rueil-Malmaison, Paris
SEDCO Capital has partnered with Inovalis Group to acquire the Convergence building in Rueil-Malmaison, the extension of Paris La Défense, which boasts more than 25 000 sq m of office space and is fully let to Danone.
The development of the Convergence building was launched by Inovalis in 2005 when it acquired full ownership of the site and commenced the demolition of the existing obsolete building in view of the development of this large-scale project carried out in association with sustainable real estate developer Pitch Promotion. Work began the fall of 2018 and is projected to complete in May 2020.
The site, situated at 17-19 rue des Deux Gares, has excellent access to transport links and is only a few metres from an RER A station and three minutes from the A86. The building has seven floors and will provide 24,997 sq m of office and services space as well as 255 sq m of retail space. Two levels of parking offer 330 parking spaces.
The development in the heart of the Rueil-Malmaison was designed by architects ORY et Associés. The project aims to obtain France’s HQE certification with an ‘Excellent’ and a BREEAM passport at the ‘Very Good’ level. Danone has leased the entire building for a 12-year term and will enjoy double floor ceiling heights, alternative workspaces, terraces as well as integrated services such as restaurants, an auditorium, fitness facilities, a cafeteria and more than 1,000 sq m of interior gardens.
Samer Abu Aker, Chief Executive Officer at SEDCO Capital, says: “This acquisition is perfectly aligned with our strategy of targeting opportunities in the most liquid European markets offering sustainable returns and opportunity for growth over the long term.”
Sherif Selim, Executive Vice President & Head of Global Real Estate at SEDCO Capital, says: “Paris continues to be an attractive destination and the office market continues to experience growth from occupiers. We believe that the transport-oriented location along with the superior quality of the building space and amenities means we will see future growth.”
Stéphane Amine, President of Inovalis Group, says: “This off-market investment demonstrates our confidence in the prospects for the development of new office property in the mature business districts of Greater Paris, where we have been positioning our investment funds since 2011. Leased to a first-class group, this complex meets the specifications of our investment criteria in terms of profile, location and marketing. We are delighted to be partnering with SEDCO Capital, who is making its second acquisition in France. SEDCO Capital thus becomes a strategic partner of our group."
Inovalis and SEDCO Capital were advised by the notary firm Oudot et Associés, the law firm Linklaters as well as by Workman Turnbull for the technical audit. The financing is provided by BayernLB and PBB Deutsche Pfandbriefbank. The seller was advised by the notary office of Wargny Katz.