Investors including Icawood, an investment fund launched by Icamap and Ivanhoé Cambridge specialising in low-carbon-emission office developments, and BNP Paribas Real Estate have committed a total of €650 mln to acquire and develop Arboretum, the first office campus in the Paris region to be constructed primarily from wood and also the largest solid-wood office development in Europe.
Icawood, BNPPRE, the FFP listed investment company owned by Établissements Peugeot Frères) together with a consortium of institutional and family investors are investing €220 mln of own funds in the project and have secured a €432 mln green loan from lender BNP Paribas as coordinator, with the participation of Allianz Real Estate on behalf of Allianz investors, as well as AEW and Ostrum AM, mandated by an institutional investor, and a debt fund managed by BNP Paribas Asset Management.
Allianz Real Estate – which also owns 6.9% of Icawood - is providing €200 mln, or 46% of the total financing.
With a total of 126,000 m2 of offices and services, Arboretum is the largest office development project launched in the Ile-de-France region with no pre-letting nor end-investor since Cœur Défense (1997), according to advisors De Pardieu Brocas Maffei.
‘It is a major step in the history of real estate financing of projects with no pre-letting nor end-investor, bothin terms of size and ecological commitment,’ the law firm said.
Surrounded by a 25-hectare park and the banks of river Seine in Nanterre La Défense, Arboretum will consist of seven buildings spread over nine hectares, of which six will consist of private green spaces. Five of the seven buildings will be built primarily from cross-laminated timber and will meet the highest environmental standards – such as BREEAM, HQE – as well as low-carbon labels such as BBCA or E+C-. The site is set for delivery in December 2022.
‘We are delighted to be playing a central role in one of Europe’s most exciting office developments,’ said Roland Fuchs, head of European real estate financing for Allianz Real Estate. ‘With its unique design, build process, extensive use of timber, and absolute focus on environmental best-practice during its operational life, Arboretum’s carbon footprint will be positive compared to traditional concrete buildings. This investment fully supports the global aspiration of the Allianz group toward a carbon neutral portfolio and showcases the strength of our European debt program and our relationships with prime sponsors and sector specialists.’
Allianz Real Estate’s European debt portfolio was valued at €8.7 bn at the end of 2019, up 10% year-on-year.
