Allianz Real Estate, acting on behalf of several Allianz Group companies, has announced the acquisition of two prime office buildings which form part of the landmark office complex Citylights in the Paris region.
The off-market deal of approximately €500 mln represents the largest office transaction that Allianz Real Estate has closed in Europe.
Citylights is located in Boulogne-Billancourt, one of the best-established office markets in the Western Business District of Paris, and comprises three towers owned by BNP Paribas Cardif (60%, ie CityLights 1 and CityLights 3) and Gecina (40%, ie CityLights 2).
Allianz has acquired the 23-storey City 1 and the nine-storey City 3, providing a total gross lettable area of 48,500 m2 and representing approximately 60% of the entire development.
Formerly known as the Pont de Sèvres Towers, the complex was built in 1978 before being redeveloped and refurbished in 2014 and 2015 by the internationally awarded architect Dominique Perrault. The buildings carry HQE Exceptional and BREEAM Excellent certification.
‘The acquisition of Citylights constitutes a further milestone in our global investment strategy. It is a one-of-a-kind office asset in a strong market that offers its tenants top quality in terms of architecture, design, amenities, sustainability and user experience. We are convinced that, by offering superior quality and services to the users of our buildings, we will secure our ongoing success,’ said Alexander Gebauer, CEO for West Europe, Allianz Real Estate.
In the coming years, Boulogne-Billancourt will benefit strongly from the Grand Paris project. The arrival of the Grand Paris Express Line N. 15, which is in front of Citylights, alongside the existing metro station Pont de Sèvres, located at the foot of the property, will offer tenants including General Electric and Solocal excellent public transport facilities.
‘Paris and specifically the Grand Paris continues to be very attractive within the broader Allianz Real Estate strategy, which is why we have increased the portfolio in France with this significant acquisition,’ said Sébastien Chemouny, head of France, Allianz Real Estate. ‘More broadly, core assets provide attractive long-term returns and we plan to further expand our portfolio with sustainable high-quality buildings like Citylights, in strong, resilient and liquid markets like in Boulogne.’
The transaction reaffirms Allianz’s conviction to further invest in prime assets in the Paris market. Including Citylights, its French equity portfolio now stands at €8.7 bn of AUM. In December 2019, the firm also acquired two large develop-to-core office developments in Saint-Ouen, strategically located in the gateway to Paris.
