Colonial is investing €165m in a Paris office asset through its Société Foncière Lyonnaise arm.

The Spanish property company’s French subsidiary, which has a property portfolio valued at €5.5bn, is buying the headquarters of the SMA Group.

The asset, in the 15th arrondissement of the French capital at 112-122 Avenue Emile Zola, is one of the largest office sites in the Paris centre west area.

SMA is due to moves to a new headquarters in the fourth quarter.

Dimitri Boulte, SFL’s managing director and COO, said: “We are focusing on making targeted acquisitions of completely outdated office properties in high-potential districts we can redevelop and put back on the market as prime new products aligned with current expectations and office use practices.”

Colonial said the 21,000sqm property was surrounded by residential and commercial real estate and well served by public transport.