Northwood Investors is taking over French REIT Cegereal.
The US private equity firm has agreed to take a 59.78% stake in the vehicle from Commerz Real’s HausInvest fund.
The deal is scheduled to close in November, with Cegereal keeping its status as a French REIT, or Société d’Investissement Immobilier Cotée (SIIC).
The REIT, listed in 2006, holds a portfolio worth €961m ($1bn).
Northwood already has office and industrial assets in France, having bought the Defense Plaza building in 2011.
Khaled Kudsi, senior managing director at Northwood, said: “We continue to see improving fundamentals across the Parisian office market, and our investment in Cegereal provides Northwood with a critical mass, a difficult to replicate portfolio and a well-regarded management platform that we can, in our capacity as a long-term investor, assist in growing the asset-base over time.”
The company is paying €35.62 per share for the stake in Cegereal, which has a €367m market cap.
Raphaël Tréguier, Cegereal chief executive, said: “This tie-up confirms our wish to create a leading prime office property company in France.
“With the support of Northwood Investors, we now have an internationally renowned team along with the resources needed to support our future growth.”