Newly launched real estate investment manager Tokoro Capital has made its first investment with the acquisition of a €30m office asset in Paris.
Tokoro Capital has bought the 86 Rue De Courcelles office building in the 8th Arrondissement from a joint venture between Angelo Gordon and S2i Partners. The property is currently vacant following a major refurbishment.
IPE Real Assets understands that Tokoro Capital invested about €30m to acquire the asset.
Tokoro Capital was launched in April by former Brockton Capital executives Sanjay Sethi and Max Bassadone. The manager raised €100m for TKO-I, its first fund to take to invest in European offices. Adding leverage, the fund has €250m of investable capital that will initially target office opportunities in London and Paris.
Bassadone said: “This acquisition presents a rare opportunity to invest in a prime central Paris location that fits with our strategy as active managers able to generate yield pick up even in lower-risk investments.”
Sethi said: “The future of the office points towards beautiful touchdown spaces offering a carefully curated mix of indoor and outdoor space, which is exactly what 86 Rue De Courcelles offers.
“As we see tenants re-evaluating how to occupy the office going forward, we see smaller buildings having an even greater reach in terms of tenant demand. This, coupled with the current appeal to tenants of low rise versus high rise buildings, has led to us already seeing strong interest from a range of tenants.”
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