Hypo arranges financing for Paris offices

Hypo Real Estate Bank has arranged EUR 50 mln in financing for commercial property investor Societe de la Tour Eiffel to acquire an office project in Port des Lilas, Paris.

The development is on the Périphérique ringroad around central Paris. It will provide 10,200 m² of office space, a 588 m² canteen, 1,500 m² of retail space and 92 underground parking spaces. The building is being developed by Nexity and is due for completion by the end of 2008.

Hypo Real Estate Group is one of the largest European providers of commercial real estate financing. Since it adopted SIIC status in 2004, Société de la Tour Eiffel has a EUR 867 mln portfolio, which generated an estimated rental income of EUR 54 mln for 2006.

Separately, Société Génerale is renting 9,400 m² of offices on the upper floors of the west wing of the Pacific building in La Défense, French website Business Immo reported. The value of that transaction was not disclosed.