Invesco buys Paris tower on behalf of Asian client

Invesco Real Estate (IRE) has acquired Tour Prisma, a grade A office tower in Paris' La Défense business district on behalf of an Asian state pension fund.

The vendor is Canadian group Ivanhoé Cambridge.

Financial details were not disclosed.

The 23,152 m2 property is about 90%-let to tenants including French law firm Fidal, which last year agreed to occupy over 13,000 m2. It also benefits from an average unexpired lease term of over eight years.

'We are delighted to have secured this newly refurbished, 22-storey office tower for our client, at what we believe to be an opportune moment in the investment cycle, given the substantial discount achieved compared to pricing for core Paris CBD investments,' commented Rory Morrison, senior director of fund management. 'Tour Prisma fits our client’s investment mandate well given its strong real estate fundamentals. It is a high quality and modern property, having been fully renovated in 2011, in a prominent and highly accessible, business-focused location.'

The company is assessing additional opportunities in Europe for its Asian client, focussed initially in France and Germany, added Morrison.

The buyer was advised by Linklaters, Etude Begon Bonneau Brulon, Arsene and PwC. The vendor was advised by Jones Lang Lasalle, Allen & Overy and Etude Wargny Katz.

The deal represents the latest divestment by Ivanhoe Cambridge in Paris. Last year the property arm of Caisse de dépôt et placement du Québec sold Tour Pacific, a 53,000 m2 office building in Paris' financial district La Défense for around €215 mln.

Earlier in 2013 it also sold the 10,500 m2 headquarters of Vivendi in the eighth arrondissement of Paris to insurer Crédit Mutuel for an undisclosed amount.