JP Morgan seeks European expansion

JP Morgan Asset Management has announced the opening of two new European offices in Paris and Frankfurt. The expansion move is aimed at identifying new commercial real estate opportunities as well as managing the company's existing assets in France and Germany.

The new team in Paris will be led by Jean-Philippe Vergnol, who is relocating from London. The American asset management company entered the French real estate market in 2001, and currently has a real estate portfolio worth some EUR 500 mln. The new office in Frankfurt will be headed by Michael Ramm, who is also relocating from London.

'Locating teams on the ground in important markets like Paris and Frankfurt means we are able to continue to serve our local clients well, manage our growing assets more closely and continue to expand in the region,' said Peter Reilly, European real estate director for JP Morgan AM.

Last week, the company joined forces with S2i Investments Management to acquire an office building in the 16th arrondissement of Paris. Located at Rue de l’Amiral d’Estaing, the 4,200-m² property was bought for a fund managed by JP Morgan and is completely vacant and in need of refurbishment. The financial details were not disclosed. Société Générale and Crédit Foncier financed the acquisition, which was brokered by BNP Paribas Real Estate, acting for the seller.

In Frankfurt, JP Morgan is said to be in final negotiations to acquire the OpenTurm from Tishman Speyer. Earlier this year, the American developer put its Openturm office tower in Frankfurt back on the market after a failed attempt to sell the trophy building to KanAm in 2008. The property is worth between EUR 500-600 mln.

JP Morgan Asset Management manages EUR 3.5 bn of real estate in Europe.