Cain International, the privately held real estate investment firm operating in Europe and the US, and its partner Freo Group, have entered the Paris office market with the acquisition of Collisee II from a French institutional investor.
Financial details were not disclosed, but sources close to the deal suggested a price of €65 mln.
The office asset currently comprises 11,488 m2 and is located in the Saint-Ouen region in the north of Paris. The partners have identified a range of asset management initiatives for the vacant building, including plans for a comprehensive refurbishment to deliver a Grade A modern office space.
Daniel Harris, head of European investment at Cain International, said: 'Despite recent headwinds, we are firmly of the view that the office sector will remain attractive post-pandemic. Workplaces will need to be more flexible going forward, but there is still a strong appetite for office environments that foster collaboration and innovative thinking from global business leaders.'
This acquisition represents Cain International’s debut in the Paris office market, further diversifying the firms’ European real estate portfolio valued at over €2 bn which spans Ireland, Spain, Central Eastern Europe, the UK, and now France. It is Cain International’s third partnership with Freo Group, having previously worked with the investment manager on transactions in Spain.
Added Harris: 'Paris is home to a multitude of strong domestic and international corporates and will continue to thrive as a growth-hub for a diverse range of tenants. This, combined with favourable pricing dynamics in the current environment, presented us with a unique opportunity to enter this new market at an attractive basis for our capital.'
Romain Fremont at Freo Group said: 'We are excited to be partnering with Cain International once again as they enter a new market. With the opening of the Line 14 Metro station, Saint-Ouen is set to benefit from this new infrastructure development to become a key location in the northern Paris office market.
'Once fully refurbished Colisse II will provide high quality office space upon its delivery in late 2022.'
Cain International was advised by Cushman & Wakefield, Eastdil and Herbert Smith Freehills. Financing is being provided by Cheyne Capital.
