JPMAM confirms Paris office buy from Eurosic

JP Morgan Asset Management (JPMAM) confirmed the acquisition on Friday of 52 Hoche and Avant Seine on behalf of an unnamed institutional investor.

The deal, which was tipped by PropertyEU in March, is understood to be worth around EUR 508 mln.

PropertyEU reported in March that JPMAM had signed a preliminary agreement to buy the two prime office schemes. The assets were put on the market in late 2011 by French REIT Eurosic as part of its strategy to refocus the business on a value-add strategy.

Well-informed market sources say the buyer behind JPMAM is the Hong Kong Monetary Authority. The government agency - which last year bought 10 Aldermanbury Square in London - is understood to have emerged ahead of a number of bidders including CBRE Global Investors. It is the second deal by the Asian investor in Europe.

52 avenue Hoche, a 10,982-m² office building located in the 8th arrondissement, serves as the Paris headquarters of law firm Allen & Overy. 50 avenue Pierre Mendès-France, a 43,367 m² office building located in the 13th arrondissement, is fully let to the French bank BPCE.

Nicolas Ruggieri, Directeur Délégué of Eurosic, said: 'This disposal fits with our strategy of selling stabilized assets in order to re-deploy the capital to higher return projects within our group. Having totally restructured and rented the 52 avenue Hoche building and having signed a new lease with BPCE on Avant Seine, Eurosic has demonstrated its abilities as an active asset manager.'

JPMAM's fund was advised by Gide, Loyrette, Nouel, Allez & Associés and PwC/Landwell.