Pan-European investment manager Meyer Bergman has sold Toko, a mixed-use residential and commercial development, to Germany's DWS and French firm La Française REM.
Financial details were not disclosed.
Following its acquisition in 2018, the former office building in the 17th arrondissement of Paris is being transformed by Meyer and local development and investment partners Assembly and Stepling into a 'work-live' development blending offices with co-living. DWS has acquired the commercial element, while La Française REM has taken over the residential element.
The 1,000 m2 residential element has been pre-leased to European co-living business Colonies, while the 8,060 m2 office space has been pre-leased to Webhelp, a French IT services firm. The project is due to be completed in February 2022.
The asset has been named after legendary Viking warrior Palnatoke, according to Meyer, whose story is thought to be the precursor to the tale of Swiss folk hero William Tell.
Toko will serve as the headquarters for Webhelp and be the first Parisian site for Colonies.
The disposal comes after Meyer and Assembly secured planning permission to add another 1,750 m2 of building space to the asset, which is located on rue Héliopolis.
Marcus Meijer, Meyer CEO said: 'We managed to acquire a quality asset with strong value-add potential thanks to the strength of our local on-the-ground Paris team.
'The successful pre-leasing of both the residential and commercial components at TOKO, combined with today’s announcement on the disposal, together demonstrate the power and benefit of investing significantly into high quality design and branding for an asset.
'This project also underlines our ability to successfully repurpose existing assets in core European city markets. Urban repositioning is a trend we see expanding post-pandemic, with Covid-19 accelerating preexisting structural shifts that cut across multiple real estate asset classes.'
