EXCLUSIVE: More details and background on Pacific tower deal in Paris

US-based developer-investor Tishman Speyer has bought Tour Pacific, a 53,000-m2 office building in Paris' financial district La Défense from Canadian group Ivanhoe Cambridge.

The deal, which is said to amount to some €215 mln, completes Ivanhoe Cambridge's disposal programme launched last year which comprised over €700 mln worth of real estate assets in Paris.

The Pacific Tower, located in Puteaux, is 70% occupied by Société Générale but the French bank is due to relocate to a new office in 2015 at the latest.. Delivered in 1992, the scheme reaches a height of 84 metres and provides 11,800 m2 of offices.

The 25-storey office scheme was put up for sale through Jones Lang LaSalle and Catella together with two other offices, the Areva and the Vivendi headquarters.

Ivanhoe Cambridge, part of Caisse des dépôts du Québec, has already sold the 10,500 m2 headquarters of Vivendi in the eighth arrondissement of Paris to insurer Crédit Mutuel for an undisclosed amount.

Next to the Opéra, between the 2nd and the 9th district, the company is selling the 28,000 m2 headquarters of insurer Areva for some €200 mln. The asset will be vacated in autumn 2013.

According to Stephan von Barczy, international director of investment at JLL, the deal shows 'the continued interest of overseas investors for the Parisian market, and illustrates their conviction in the rebound capacity of La Défense'. 'This conviction is shared by two conservative German mortgage banks who accompany Tishman Speyer and their Canadian investor in this deal,' he told PropertyEU.

In a statement, Tishman Speyer said it plans to fully renovate the asset to include 'significant' sustainability improvements. 'We have been looking for opportunities to increase our footprints in major European cities, and Tour Pacific fits very well with the rest our portfolio,' said Tishman Speyer Co-CEOs Jerry and Rob Speyer.

The acquisition expands Tishman Speyer’s portfolio in France, which now includes 12 buildings totaling 415,000 m2. Among them is Tour Esplanade, which is adjacent to Tour Pacific and is fully leased to the French government, following the signing of 2012’s largest lease in Paris.

German banks Helaba Landesbank Hessen-Thüringen and Deutsche Pfandbriefbank provided financing for the deal. Tishman Speyer was advised by Allez et Associés, De Pardieu Brocas Maffei and Finae Advisors. Vendor Ivanhoé Cambridge was counselled by Wargny Katz and Allen & Overy.

PARIS OFFICES FOR SALE
Paris has seen a string of deals in the past few months, with some €700 mln of real estate still up for grabs. According to market sources, Sequana, a 100-metre high skyscraper delivered in September 2010, is being sold by Les Docks Lyonnais for around €350 mln.

The 43,000 m2 complex in the Seine Ouest district of Issy-les-Moulineaux was developed by French construction group Bouygues and currently houses the headquarters of Bouygues Telecom.

The building was bought by Docks Lyonnais for €484 mln at the peak of the market in 2007.

Tour Sequana is the largest of a number of properties on the market. In the 17th arrondissement, Dutch listed company Eurocommercial Properties is selling the Passy Plaza retail gallery which was last valued at €131 mln.

The 8,100 m2 city-centre asset is fully let to major retailers such as Inno, H&M, La Grande Récré, and Massimo Dutti.

In the regions, Jones Lang LaSalle is selling the Danica office building in the La Part-Dieu business district of Lyon on behalf of its owner Züblin Immobilière France. The asset is likely to trade for €60 mln, reflecting a record low yield for Lyon of 5.75%.