European real estate investment manager Europa Capital has teamed up with Italian asset manager DeA Capital Real Estate France to acquire a post-war, 3,200 m2 office building in the 18th arrondissement of Paris, France, from S2FIT1, the office and industrial property manager of the SNCF group.
The acquisition has been completed on behalf of Europa Capital’s latest value add fund, Europa Fund VI.
The vacant property, which was constructed in the early 1950s and benefits from an abundance of natural light, will be comprehensively refurbished, maximising the reuse of existing materials within the building, to improve its environmental credentials and create a working environment which meets the requirements of today’s modern occupiers.
Outwardly, the building will retain its original character with a restored façade. The scheme, which is expected to complete in mid-2023, aims to achieve optimal environmental accreditation through HQE, BBCA and WiredScore certification.
Jason Oram, partner & fund manager at Europa Capital, commented: ‘Constructed in the 1950’s by SNCF for the benefit of its workers at the neighbouring Chapelle depot, it seems fitting that 70 years later, the ‘raison d’être’ of this building will remain the well-being of the occupiers. Our decision to retrofit the property using existing materials where possible, whilst also introducing a comprehensive suite of cutting-edge sustainability measures, will produce a greener building with less bearing on the environment.’
He added: ‘Despite the impact of Covid-19 on occupational take up, vacancy levels for new, Grade A office space in Paris remain extremely low. Completion of the refurbishment is not expected until mid-2023, and with little new supply coming to the market in the medium term, we expect there to be good demand for this well located, high quality building.’
Emanuele Dubini, CEO at DeA Capital, added: ‘This acquisition represents a first milestone in our inner-Paris office strategy. We are delighted to collaborate with Europa Capital on this exciting redevelopment, with a clear focus on value generation while environmental and sustainability aspects remain the key features of this project.’
Europa Capital and DeA Capital Real Estate France were advised by Lasaygues, Mayer Brown, PwC, Theop and CBRE.