Global real estate developer Tishman Speyer and Canada’s Public Sector Pension Investment Board (PSP Investments) have made two major acquisitions in the Paris office market.
They have acquired the 30-year-old skyscraper Tour Cristal in the Front de Seine area and the Carré Saint-Germain, a mixed-use property on Boulevard Saint-Germain.
Meanwhile, BMO Real Estate Partners (REP) bought a mixed-used property on the Champs-Élysées, marking its first club deal in the city with two German pension funds.
No purchase prices were disclosed by the buyers, but IPE Real Assets understands that BMO REP paid between €260m and €300m for the Champs-Élysées asset.
In all, 45,000sqm of space has changed hands, most of which is represented by Tour Cristal, a 26,000sqm office tower located in the 15th Arrondissement.
Built in 1990, it was the last tower to be developed in Front de Seine and is among the last high-rise towers built in central Paris.
Philippe Joland, senior managing director and president of Tishman Speyer France, said: “Tour Cristal is a one-of-a-kind space, as it is very central and provides spectacular views over Paris.
“Our objective here is to inject our technical, commercial and hospitality knowhow to make this one of the prime properties in the central business district.”
Stéphane Jalbert, managing director for Europe and Asia-Pacific real estate investments at PSP Investments, said: “The acquisition of Tour Cristal demonstrates PSP’s ability to see beyond disruption, executing a complex business plan while continuing to grow and strengthen our partnership with Tishman Speyer.”
The 13,800sqm Carré Saint-Germain was acquired from AXA Investment Managers–Real Assets and is part of the historical Saint-Germain des Prés district, surrounded by the Seine river banks to the North and the Jardin du Luxembourg to the South.
“We’re very proud of this new acquisition which is our third since the onset of the global pandemic,” said Joland.
“With this magnificent property we have a unique opportunity to reinvent office space in a way that responds to the new ways of working – while being in the heart of the ‘left bank’, where such opportunities are very rare.”
BMO REP and two German pension funds acquired a 5,700sqm, Haussmann-designed corner building located at 71-73 Avenue des Champs-Élysées, including office and retail space across seven floors.
Located on the ground and first floors, fronting onto the Avenue des Champs-Élysées, the 1,600sqm of retail space is let to luxury jeweller Dubail, the primary franchise retailer for Rolex in France, premium fashion brand Tara Jarmon and telecommunications company SFR.
The office spaces on the upper floors, all of which have exterior balconies, are let to six tenants including insurance broker Cooper Gay and Bank Audi’s headquarters.
“This transaction reflects our capability in sourcing off-market transactions from private investors and in securing mutually beneficial conditions in the backdrop of the pandemic,” said Adrien Brion, head of operations at BMO REP.
“This high-profile property further demonstrates our expertise within the prime luxury high-street retail sector. The investment provides both capital preservation as well as the potential for value creation in the medium term, given the asset’s current income profile and the supportive dynamics underpinning this excellent micro location.”