Bank of Angola and LaSalle bring $1b Plaza assets to market

The joint venture, Plaza Global Real Estate Partners, which was advised by Quantum Global Partners, has appointed JLL to sell the four office buildings which are located in London, Paris, Munich and New York. The assets were acquired between 2012 and 2014.

After first considering a sale a year ago, it emerged at the Mipim trade fair in Cannes this week that the JV is to sell all the assets and wind up the vehicle. ‘It was decided that now is a good time to sell,’ a source said. LaSalle declined to comment. 

Some agents at Mipim said they believed that yields for trophy offices in Paris and top German cities have stopped compressing, suggesting the market has topped out. They said the recent rise in long-term interest rates was a factor in giving some investors cause to pause and decide not to bid on assets where vendors are seeking record prices and even lower yields. 

In addition, there was some caution about the future strategy of Chinese investors and their ability to continue to invest overseas at the same high rate. The Asian press has reported that Chinese aviation-to-real estate conglomerate HNA has appointed JLL to sell its $6 bn of global property. 

The Plaza buildings include 23 Savile Row in Mayfair in London, which the JV bought in 2012. The Paris asset is La Tour Blanche, in La Défense, a 26,000 m2 tower let to a subsidiary of French energy company EDF. In Munich, the JV bought Atrium in 2013. The 44,000 m2 office consists of four buildings which are let to a mix of mainly technology occupiers, including Oracle. 

The New York asset is 521 Fifth Avenue. Plaza acquired a 49.5% interest in the 46,000 m2 tower in 2012 alongside SL Green.

Image:  23 Savile Row in Mayfair, London

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This article first appeared in EuroProperty, a PropertyEU weekly publication