Private markets investment manager Partners Group has signed a deal to buy an office building in central Paris for €170m.
The 28-storey building, CB16 Tower, is located in the the La Défense business district of the French capital and has 30,000sqm of floor space in total.
Mike Bryant, managing director and co-head of private real estate at Partners Group, said: “La Défense is experiencing a steady recovery in demand for office space compared to previous years and the acquisition of CB16 Tower is a great way to gain exposure to the area at a good point in the cycle.”
He said the asset fits well with Partners Group’s relative-value focus on buying office property below replacement cost in decentralised locations in tier-one cities, where pricing does not yet reflect attractive fundamentals.
The tower was built in 1971 and was renovated in 2003.
Partners Group said it would form a partnership with local operator Aquila Asset Management to manage the property.
The Switzerland-headquartered comapny plans to carry out further renovation to improve the property’s occupancy.