Blackstone’s acquisition of Centre d’Affaires in Paris is one of a string of office transactions this week pointing to a rebound of appetite for top-tier office properties across Europe. 

The US asset management giant bought the trophy office building in central Paris for about €700m from German investor Union Investments, which had previously bought it for €284m in 2003. The sales price was above the latest valuation for the asset.

“This acquisition underscores our confidence in the European office market and belief that the right assets in prime locations, combined with our capital and extensive asset management capabilities, continue to offer compelling opportunities for value creation,” said James Seppala, head of real estate Europe at Blackstone.

Investors have been snapping up prime offices across Europe’s cities. This week AFI took full control of Office House investing €160m in Warsaw and Manova Partners acquired the Vibe office building also in the Polish capital. Edge emerged as the buyer of nieuwAmsterdam in the Dutch city of Amsterdam for €120m and Ares picked up 101 New Cavendish Street for £100m. Offices properties also changed hands in Madrid, Cologne, Hamburg and Stuttgart.

On the debt side, lenders splashed roughly €1bn to refinance office schemes in London. ING, SMBC and BayernLB lent £290m to Global Holdings for the South Bank Sea Containers building which provides 292,000sqft of prime office space and the 359-bed Sea Containers Hotel operated by Lore Group. 

Berlin Hyp and Delancey financed 20 Carlton House Terrace granting a £241m loan to replace the development facility following practical completion of the scheme. BGO is funding the development of the mixed-use Notting Hill Place scheme which includes 170,000sqft of offices and Cheyne Capital is behind the refinancing of the YY building, also in London.

In Continental Europe, Santander and Bank Pekao provided a €61 facility to Madison International Realty and Cavatina Holding for Chmielna 89 which completed in 2020.

 

Recently completed deals       
Asset Asset type Location Buyer Vendor Size Price (mln) Key facts
Centre d’Affaires Paris Trocadéro mixed Paris Blackstone Union Investment 41,000m2 €700 The asset was acquired by Union Investment in 2003 for its open-ended real estate fund UniImmo: Deutschland at a price of €284m.
The Ellinikon land plots development Athens ION Group Lamda Development 250,000m2 €450 The buyer plans to develop its R&S Innovation Campus on the site.
PBSA portfolio living UK KKR Curlew Student Trust II 2,179 beds £230 (€265) The 2,179-bed portfolio serves students across seven UK cities with strong university presence.
Office House office Warsaw AFI Echo Investment 32,000m2 €160 AFI has taken full control of the asset, in which it previously owned a stake.
AMS05 logistics Hofddorp, the Netherlands Pontegadea Intospace 67,000m2 €145 It is the biggest logistics transaction carried out so far this year in the Netherlands.
Podium asset in Trafford living Manchester GMPF and Moorfield Real Estate Fund V Glenbrook 440 homes £120 (€138) Phase I is expected to be completed in the second quarter of 2026.
nieuwAmsterdam office Amsterdam Edge CBRE Dutch Office Fund 40,400m2 €120 The asset is located at Bijlmerdreef 51, Hoekenrode 1-6, 8 and 10, and Hoogoorddreef 50 in Amsterdam-Zuidoost.
nursing home portfolio healthcare France LeadCrest Capital Partners Emeis 13 assets €120 The properties are located in the Paris metropolitan area and in French touristic and retirement hotspots.
101 New Cavendish Street office London Ares Management Corporation WELPUT fund NA £100 (€115) The asset is leased to tenants including talent management agency CAA Sports, Bridge Real Estate Investments Group and Zenium Technology Partners.
10.8% of Retail Estates NV mixed Benelux Sagax Shareholders 1,021 properties €108 (SEK1190) The portfolio has a leasable area of 1,213,000m2 with a rental rate of 97.5%.
24 light industrial properties logistics Sweden Slättö Rejme/Knopf 81,000m2 ~€100 The properties are mainly located in Linköping, Norrköping, Nyköping and Örebro.
two business parks logistics Dresden, Germany and Southampton, UK Sirius Real Estate NA NA €68 The Dresden asset was acquired at an EPRA NIY of over 9%.
Vangarde Shopping Park retail York British Land Associated British Foods Pension Scheme 339,000sqft £44 (€51) The retail park in Huntington was developed by the Wetherby-headquartered Oakgate Group in 2014.
Equinox portfolio logistics UK NA L&G 267,000sqft £37 (€43) The portfolio comprises 19 assets.
Kingsgate shopping centre retail Huddersfield, UK Northdale AM WD Ltd NA £36 (€41) The scheme was brought to market in June.
29 de la calle Agustín de Foxá office Madrid La Finca Inmobiliaria Orbis 7,000m2 €30 JLL brokered the deal.
IOS asset logistics Longcross, UK Family-office and owner-occupier business Newcore Capital 20 acres £22 (€25.3) Newcore has now sold the entire site, which also includes a 6-acre anaerobic digester leased to Severn Trent Green Power, on behalf of its Newcore Strategic Situations IV (NSS IV) fund.
office asset office Cologne International industrial company BlueRock Group 8,100m2 NA The sale price is in the mid-double-digit million-euro range.
Gewerbehaus Ottensen office Hamburg Values Real Estate NA 11,600m2 NA The property is almost fully leased.
Ardencote Hotel and Spa hotel Warwickshire, UK Barons Eden NA 110 bedrooms NA Natwest provided senior debt for the four-star asset.
Vibe office building office Warsaw Manova Partners Ghelamco 15,000m2 NA The asset is fully leased to tenants that include Reckitt Benckiser, Rödl & Partner, MDDP Outsourcing, Porsche, and Knight Frank.
13 properties mixed Halmstad, Sweden Fastighetsstaden NA 27,500m2 NA Commercial accommodation accounts for just over half of the lettable area, while the residential element includes 217 apartments. The portfolio generates an annual rental value of around SEK43m.
17 ibis and Mercure hotels hotel Germany Event Hotels Blackstone 2,021 rooms NA The buyer previously operated the hotels.

 

Assets on the market       
Asset Asset type Location Vendor Size Price (mln) Broker Key facts
Merry Hill shopping centre retail Brierley Hill, UK Consortium including Wells Fargo and Axa Investment Management 1.4m sqft £250 (€288) Knight Frank The asking price equates to a 9% yield.
Clarion Hotel Amaranten hotel Stockholm NREP 461 rooms €200 NA The asset sold in 2020 for SEK 1.5bn.
7Pines Resort Ibiza resort Ibiza Engel & Völkers Asset Management 185 suites €125 NA The resort opened in 2018.
The Georgian Collection living Dublin NA 91 units €30 Savills The portfolio comprises 13 residential assets.
Macken House mixed Dublin Tetrarch ICAV on behalf of the ESB Pension Fund 51,347sqft €24 JLL The six-storey building includes 42 car parking spaces.

 

Recently completed loans    
Lender(s) Borrower(s) Asset(s) Loan Size (mln) Key facts
Bond investors Heimstaden Bostad Unsecured €500 The notes have a maturity of 5.5 years with a coupon of 3.75%.
Bond investors Merlin Properties Unsecured €500 The transaction has a maturity of eight years and carries an annual coupon of 3.50%.
ING, SMBC, BayernLB Global Holdings South Bank Sea Containers building £290 (€333) The landmark scheme provides 292,000sqft of prime office space and the 359-bed Sea Containers Hotel operated by Lore Group.
Berlin Hyp and Delancey HIG 20 Carlton House Terrace in London £241 (€277) Berlin Hyp acted as senior lender while Delancey acted as junior lender through its dedicated credit strategy. The refinancing replaces the development facility following practical completion.
BGO Beltane and TPG Angelo Gordon Notting Hill Place in London £175 (€201) The loan is to develop the proposed mixed-use scheme.
Cheyne Capital Canary Wharf Group YY building in London £171 (€196) The office refurbishment scheme was completed in 2023 and the development is 33% let.
Värde Partners Titania Byamannen 2, Topasen 3 and Bjurbäcken 11 properties in Stockholm €150 (SEK1.7bn) The financing is structured in three tranches, with Titania drawing the first SEK1.04bn.
Santander and Bank Pekao S.A. Madison International Realty and Cavatina Holding Chmielna 89 in Warsaw €61 The loan refinances the asset completed in 2020.
HSBC Alternative Income REIT NA £41 (€47) Facilities consist of both a £31m fixed term loan and a £10m revolving credit facility.
OakNorth Broadwood three purpose-built care homes £31 (€36) The facility will allow Broadwood Later Living Sustainable Construction Finance Fund to deliver 250 new care homes.
BNP Paribas Bank Polska Panattoni third hall at Panattoni Park Gdańsk West II €20 The loan will be used to finance a third hall in the logistics park.

 

New mandates/JVs and funds on the market   
Firm Fund/mandate/JV Strategy Details
ActivumSG Value-add platform with The Mansion Group Acquiring and modernising PBSA assets The newly created value-add platform has acquired seven assets with a gross development value of over £100m.
      It is planning to develop over £500m of UK student housing assets.
Invesco Real Estate Fokus Nordic JV Acquiring high-quality residential properties in Finland. The new partnership will initially target the acquisition and long-term management of modern rental housing in Finland’s Helsinki, Tampere and Turku affluent sub-markets.
Patrizia and Fabrix UK affordable and alternative housing venture Repurposing underused urban spaces in London for sustainable, affordable and alternative housing. The Sustainable Communities London (SC London) partnership has an initial equity commitment of £45m.
Northern Horizon Aged Care Social Infrastructure Fund Investing in new, fit-for-purpose care facilities as well as forward-purchase and forward-funding projects in the Nordics. German public pension fund KZVK Dortmund and commercial bank Helaba have committed €220 to the fund.
Incus Capital European Credit Fund Investing in credit opportunities across Europe The fund has carried out a €400m first close and is looking to reach a size of €1bn.