JP Morgan Asset Management and LaSalle Investment Management have put the Magnetik building in Paris on the market on behalf of two pan-European funds.
The prominent, 34,000 m2 office complex is located in Montrouge in Paris’s 14th district, on the southern ring road. It is about 70% let after an extensive renovation in 2017-2018. LaSalle and JP Morgan bought it empty after it was vacated by Sanofi.
Sources said that Magnetik could attract offers in the region of €300 mln, appealing to core-plus investors because it is still 30% vacant.
The complex comprises two adjoining seven-storey buildings. In 2018, LaSalle and JP Morgan relet 14,000 m2 Building B in its entirety to Chronopost, the express delivery company, on a 10-year lease.
Two lettings for Building A went ahead this summer after negotiations started before the coronavirus outbreak.
Medtronic took 4,610 m2 on a nine-year lease with Deskeo renting 3,168 m2 for its flexible workspace concept Space Management in a 10-year deal.
JP Morgan and LaSalle said at the time: ‘Sensitive to the strengths of our building, these two groups have maintained their choices despite changes in certain working methods due to the health crisis’.
A source said the market will watch the sale’s progress with interest to see whether the level of demand from investors for higher-risk offices matches the very strong demand in the city for core assets.
Magnetik, which offers facilities including Paris’s largest business terrace, has a 180 metre glazed facade overlooking one of Europe’s most heavily used motorways, and is near the Porte d'Orléans station.
Elsewhere in the capital, French insurance groups CNP Assurances and Cardiff have put the Natixis Liberté 2 building in Charenton-le-Pont up for sale with a circa €200 mln price .
The offices are at 5 avenue de la Liberté, on the east side of Paris’s ring road. It is also seen as a core-plus investment as there are only a few years left on Natixis’s lease.
