Choiseul REIM, an investment and asset management company part of La Compagnie Financière de Choiseul, has agreed the sale of a mixed-use complex of 8,000 m2 of retail, office and residential space to the luxury group Kering for an amount over €600 mln.
The off-market transaction was carried out by Choiseul REIM on behalf of the 12/14 rue de Castiglione Paris property unit, within the framework of a VEFA (a forward sale) contract which will see the landlord carry out an extensive redevelopment of the asset over the next 24 months.
Located in a prime location, at the corner of 12-14 Castiglione and 235 Saint-Honoré in the 1st arrondissement of Paris (France), the asset benefits from its immediate proximity to the iconic Place Vendôme. At the end of the redevelopment project, the building will meet the highest requirements in terms of certification and will be certified Breeam Excellent, HQE Exceptional and NF Habitat Très Performant.
Upon completion, planned for the first quarter of 2025, the prestigious Gucci brand of the Kering Group will occupy up to 80% of the space.
Benjamin Hanouet, Chairman and CEO of Choiseul REIM, said: 'This value-add operation reflects the strategy and know-how of Choiseul REIM's teams, which consists of optimising the value of real estate portfolios through ambitious restructuring programs in prime locations, so that they meet the new expectations of a market characterised by the decompression of rates.'
The deal was supported by bank Natixis as financier. 'The 12/14 Castiglione project is a perfect example of how finance and asset management teams can work hand in hand and be agile enough to adapt to rapidly changing market conditions. We have enjoyed working on a project that will provide structure to this emblematic district of Paris, alongside a quality operator that has demonstrated its mastery of human, operational and financial issues,' added Mathieu Gayral, executive director of Real Estate Finance at Natixis.
