US private equity group BlackRock is poised to sell a major mixed-use complex in Paris for over €400 mln, PropertyEU has learned.
US private equity group BlackRock is poised to sell a major mixed-use complex in Paris for over €400 mln, PropertyEU has learned.
Norway's oil-fuelled pension fund, Norwegian Government Pension Fund Global is understood to have emerged ahead of eight other bidders in the running to acquire Le Madeleine, a 30,000 m2 mixed-use asset in the first arrondissement of the French capital. International investors account for seven of the nine bids.
BlackRock is selling the asset, which includes 11,700 m2 of retail space and 17,300 m2 m2 of offices anchored by Chanel, on behalf of a fund it manages for €425 mln.
The asset generates a passing rent of around €20 mln per annum.
Formerly known as Les Trois Quartiers, Le Madeleine was bought by MGPA (currently part of BlackRock) from UK-based REIT Hammerson in 2009 for a price of €210 mln. At the time, the price represented a 24% discount to the latest valuation of €275 mln.
If successful, the current sale at €425 mln will generate a healthy gain for the US private equity group.
The sales process is being run by agent JLL.