AXA Investment Managers - Real Assets has completed the acquisition of a speculative office redevelopment site next to La Défense in Paris.
The Tour Norma redevelopment project will start in September 2016 on a speculative basis. Developer Redman has already obtained a building permit for a new 18,500 m2 office building at the development site in Puteaux, next to La Défense business district in Paris. AXA IM - Real Assets has now acquired the project on behalf of one of its clients.
The financial details of the transactions were not disclosed.
The building is designed by architect firm Agencies Lobjoy-Bouvier-Boisseau and Philip Ridgway and will offer seven storeys of office accommodation, a restaurant, a showroom as well as nearly 300 underground parking spaces.
It will be built on the site of Tour Norma, an outdated office high-rise building, which will be demolished. The project will be managed by Redman, with delivery expected in autumn 2018.
Nathalie Charles, pan-European development leader at AXA IM - Real Assets, commented: 'This acquisition highlights the attraction of key office markets to our clients and, in particular, La Défense and its immediate surrounding area. With slowing levels of office supply in the vicinity and delivery of new buildings not expected until after 2018, we expect to generate satisfactory levels of demand from occupiers. Tour Norma reconversion project also demonstrates our ability to seek out development opportunities for clients with different risk/return profiles.'
This transaction follows AXA IM - Real Assets’ recent acquisition of Tour First in La Défense, the tallest building in France on behalf of a club of investors. It also adds to AXA IM - Real Assets’ portfolio of Parisian assets and developments, including Qu4drans, a scheme comprising 86,000 m2 of office space across four buildings Paris’ 15th arrondissement.
AXA IM - Real Assets has a track record of managing and executing 250 development projects in eight European countries for a total of €13.2 bn since 2000. It also has €10.5 bn of projects currently under development, €3.9 bn of which are in France.
