TH Real Estate has acquired an iconic mixed-use project in the Morland Mixité Capitale Parisian urban regeneration development, located in the heart of Paris, from Société Parisienne du Nouvel Arsenal, represented by Emerige.
Once complete, the 28,262-m2 Morland Mixité Capitale development will include 9,171 m2 of office space, 970 m2 of retail space, a 4,151 m2 youth hostel with 404 beds, a 10,597 m2 hotel-restaurant-bar, an 813 m2 nursery, a 1,749 m2 swimming pool and fitness area, a 521 m2 food market, the 290 m2 artistic laboratory "Paris Art-Lab", and 33 parking spaces.
Expected to complete in H1 2021, the development is part of the structural and architectural regeneration of the former Paris Prefecture, an emblematic 43,000 m2 site.
Financial details of the acquisition were not disclosed. TH Real Estate is making the purchase on behalf of the Cityhold Office Partnership (CHOP), a pan-European office and mixed-use vehicle valued at €2 bn.
'Morland Mixité Capitale is an iconic real estate project with exceptional development prospects at the very heart of the capital. This exceptional acquisition allows us to further enhance our product portfolio and is testament to our growth aspirations for French investments,' commented Christel Zordan, head of France at TH Real Estate.
'Developing future-proofed prime assets in the optimal city centre locations remains fundamental to our investment strategy and we will continue to look for further opportunities both in Paris and across Europe, as we seek to grow the venture to €4 bn+ in the coming 2-3 years,” added Jasper Gilbey, fund manager of the Cityhold Office Partnership, TH Real Estate.
The Accor Group will operate the 161-room, 5-star hotel under its ‘SO’ brand. The youth hostel will be operated by France Hostel, marking its first location in the heart of the French capital.
TH Real Estate was advised by notary office Thibierge, law firm Gide Loyrette Nouel, technical advisory was provided by Orféo, while Arsène Taxand advised on real estate taxation, Linklaters on the structuring of the deal, and JLL Hospitality provided hotel advisory. Société Parisienne du Nouvel Arsenal was advised by notary office Wargny Katz, law firm De Pardieu Brocas Maffei and commercial real estate consultancy firm Cushman & Wakefield.
