London-headquartered European real estate fund manager The Valesco Group announced on Thursday that it has completed, via a sale-and-leaseback, the €460 mln acquisition of the Sequana office tower in Paris.
Valesco said the acquisition represents the largest office deal of the year so far in Continental Europe and the largest office transaction in France since 2021. It reflects a yield of 4.8%.
Sequana Tower serves as the global headquarters of European hospitality group Accor SA, the sole occupier with a 12-year, index-linked lease on the building. The 26-storey, 43,027 m2 tower generates €22 mln of rental income per annum.
The transaction is the first by Valesco’s new fully discretionary fund, which had a recent first close anchored by sovereign capital.
Sequana Tower is located in the Issy-les-Moulineaux commune, a prime micro-location in Paris and home to the headquarters of a number of multi-national companies including Nestle, Microsoft, Johnson & Johnson, Cisco and Capgemini.
The property, which was awarded the Eco Building Performance Grand Prize for its design, has strong ESG credentials. Amenities include a concierge service, a gym and spa, an auditorium, multiple cafeterias and breakout areas, an executive restaurant on the top floor as well as various terraces.
Shiraz Jiwa, founder and CEO of The Valesco Group, commented: 'Sequana Tower represents the latest addition to our growing portfolio of mission-critical, futureproof landmark assets. Our deep experience of executing during complex times against a backdrop of macro uncertainty, combined with our conviction on the real estate fundamentals underpinning this Parisian HQ Tower, has enabled us to close this year’s largest Continental European office deal and France’s largest since 2021.'
He added: 'Mission critical offices have a vital role to play in the performance of corporates and in the development of talent. Their essence is to create an ecosystem and environment where talent can thrive and self-actualise whilst delivering for the collective – there must be a return on experience in any future proof office along with sustainability at its core.
‘With Sequana being the first investment by our new discretionary fund, we continue our drive to deploy into further differentiated product in Paris and other European gateway cities.'
Valesco was advised on the deal by Clifford Chance (legal), Lasaygues (notary), PwC (tax), Drees & Sommer (technical) and Elan (ESG).
See also interview with Shiraz Jiwa: Valesco back in acquisition mode after pause
