US private-markets firm Bain Capital, European real estate investor Revcap and French property asset manager Black Swan have confirmed they have acquired – and plan to reposition – a prime mixed-use building in central Paris.
The vacant building at 29–33 Avenue des Champs-Élysées will be redeveloped into three retail units and office space.
No purchase price was disclosed, but last month French listed property company Icade said it had signed a preliminary agreement to sell property to the joint venture for €402m.
Ali Haroon, partner and head of special situations and real estate in Europe at Bain Capital, said: “This investment highlights the strength of our European real estate strategy and our ability to underwrite unique assets in globally strategic locations. The Champs-Élysées remains one of the most recognisable and resilient retail avenues in the world, and we see compelling long-term potential in delivering a next-generation retail and office destination in the heart of Paris.”
Rafael Coste Campos, partner at Bain Capital, said: “The fundamentals supporting this asset are exceptionally strong. Flagship retail units of this scale and quality are extremely rare and structurally undersupplied, whilst tenant demand continues to deepen.
“The current macro dislocation is allowing a special window to acquire unique assets at attractive valuations. We are convinced that combining our expertise with that of Revcap and Black Swan will enable us to maximise value creation for the asset.”
Andrew Pettit, equity partner of Revcap, said: “We are delighted to be partnering with Bain to acquire such an iconic asset in central Paris. The acquisition demonstrates Revcap’s ability to execute complex transactions of scale in key European markets, whilst illustrating the capabilities of Black Swan Real Estate Capital, a platform created by Revcap. We look forward to contributing to the ongoing evolution of one of the world’s most recognisable streets.”
Rouzbeh Badi Arez, partner at Black Swan, said: “By acquiring this office and retail building on this iconic avenue, we are proud to join forces with prestigious partners to reimagine a landmark project at the heart of Paris.
“This transaction represents an exceptional opportunity to acquire a truly rare redevelopment asset located at the very heart of an internationally-acclaimed address.”
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