Real estate investment manager Barings has acquired a prime grocery retail asset on the 7th Arrondissement in Paris, on behalf of a strategy to acquire core real estate, from an insurance company.
Located on 42 Rue de Sèvres, one of the wealthiest areas on the left bank of Paris’ 7th arrondissement, the circa 4,500 m2 asset includes more than 2,400 m2 of sales area and is fully let to a global leading French retailer.
The asset sits within one of the densest retail areas in Paris, with a very low vacancy rate, and benefits from a direct Métro station access (Vaneau), and close proximity to the luxury department stores Le Bon Marché et La Grande Epicerie, a number of major companies’ headquarters and high-end residential properties as part of a regeneration of the former Laennec Hospital.
Guillaume Bieganski, managing director and country head, France, at Barings Real Estate, said: 'Through our on-the-ground team and its strong relationships in the market, we identified this opportunity to acquire a prime retail asset in an extremely desirable location at an attractive price and seized it on behalf of our investors.
'This is our second retail transaction over a 2-year period after acquiring a retail portfolio in 2022. Our main focus though continues to be in the prime office sector (mainly Paris CBD), in logistics including development JVs, as well the residential sector including PBSA/BTR/BTS across France.'
Gunther Deutsch, managing director and head of European transactions at Barings Real Estate, said: 'While grocery retail is not our prime focus across Europe, this opportunity was unique and compelling, which is why we transacted on it.
'Our focus for our investors across Europe remains on logistics and living, be it with developer JVs or forward structures in our target markets, namely France, Germany, the Netherlands, the Nordics, the UK, Iberia and Italy.'
Rothschild & Co and Knight Frank were mandated by the vendor. Barings was advised by Oudot (notary), LPA-CGR (lease, tax, structuring), Arcadis (technical and environmental), RSM (accountant) and Cushman & Wakefield as commercial advisers. The asset is held by an OPCI managed by Edmond de Rothschild.
