La Françcaise to acquire prime Paris office building
Invesco Real Estate (Invesco) has exchanged contracts on the sale of a prime office asset in Paris to La Française Real Estate Managers on behalf of one of its clients.
The deal, which reflects the highly positive outlook for the Paris office sector, crystallises strong outperformance for investors in Invesco’s European core programme.
The c11,100 sq m asset is located at 173 Boulevard Haussmann (Paris 8th arrondissment) in the central business district of Paris, 400m from the Place de l’Etoile and the Champs-Elysées. Acquired by Invesco in 2015, it is let to Lazard, a leading investment bank, on a 12-year lease. The asset offers tenants panoramic views over the rooftops of Paris and the Eiffel Tower.
Following the acquisition in 2015, Invesco undertook a 24-month refurbishment programme, developing a best-in-class office asset which retained the building’s Hausmannian exterior with a thoroughly modern interior. With high-quality office space in short supply, the firm repositioned 173 Haussmann by creating additional space, including three new floors on the corner of the building, and modernising it throughout to capture rental upside and future growth.
Cristiano Stampa, Managing Director - Transactions, at Invesco, says: “The exceptional quality and the great location of 173 Boulevard Haussmann means it will continue to develop in prominence over the coming years. The achieved sales price reflects this quality and momentum, as well as the strength of the Paris market, despite the effects of COVID-19 still being felt in France and across Europe.”
173 Haussmann has also been awarded both French HQE Exceptional and BREEAM Excellent. As part of the refurbishment programme, the building now adheres to the highest ESG and sustainability standards thanks to implementing innovative tools and construction techniques such as high efficiency solar control glazing, thermo dynamic construction simulation, bio-filtration technique for grey waters and an urban farm on the terrace, delivering a highly efficient building.
Jonathan Pierce, Senior Director - Fund Management at Invesco, says: “173 Boulevard Haussmann epitomises Invesco’s approach to its manage-to-core programme. Delivering best-in-class, core assets with strong ESG credentials to our wider portfolio, through the de-risked upgrading of buildings and in return, producing alpha performance along the way. The award-winning development was pre-leased to an institutional grade covenant for 12 years, setting a new benchmark for Paris rents at the time. After five years, and following the approach, we have chosen to redeploy capital, as ever focussed on forward performance and the right balance of risk adjusted returns for our investors.”
On this transaction, the advisers to Invesco were Linklaters (legal), Victoires Notaires Associés (notary), Deloitte/Taj (tax and structuring) and Strategies and Corp (agent).