France's tallest office building changes hands for €800m

AXA Investment Managers - Real Assets has agreed to buy France’s tallest office building for a 'club of investors' through a share deal.

Tour First, a 231-metre tower in Paris's La Defense business district, was acquired from BCSP CE Lux I Sarl and BCSP CE Lux III Sarl, affiliates of Beacon Capital Partners. The transaction is worth around €800 mln, according to sources close to the deal quoted in the French media.

Built in 1974, the tower comprises more than 80,000 m2 of prime office space on 44 floors and is currently 83% let on long leases to two global blue-chip companies.

The buyers are a group of investors managed by AXA IM - Real Assets together with Assurances du Crédit Mutuel.

The tower underwent a €300 mln refurbishment between 2007 and 2011 under the stewardship of Kohn Pederson Fox architects, which included extending the building upwards by 74 metres. AXA IM and Beacon each owned a 50% share of the asset during the building programme, after which Beacon became sole owner through a share deal.

Pierre Vaquier, CEO of AXA IM - Real Assets, said: 'This transaction demonstrates our continued ability to bring together "clubs" of leading international investors in the acquisition of landmark real estate assets and to position investments in coherence with market cycles.

'This transaction also represents a substantial investment in the European office market and matches our clients’ exacting requirements for high-quality core assets. It demonstrates our confidence in the strength and prospects of the Paris office market.'