Lebanon-based, multi-family office SFO Group has acquired a prime office asset in the central business district of Paris, in partnership with French investment manager L’Etoile Properties.
Located on Avenue Hoche near to the Arc de Triomphe and Parc Monceau, the property comprises 2,400 m2, with 500 m2 of private gardens and terraces as well as a three-storey underground car park. It is SFO’s first purchase in the Paris real estate market.
The value of the deal has not been disclosed by the parties. The recently vacated building offers a 'unique repositioning opportunity in one of the most sought-after, competitive and highly liquid real estate markets in Europe', according to the parties behind the deal.
Welcoming the acquisition, Mohamad Abouchalbak, CEO of SFO Group, said: ‘We are delighted to have completed this acquisition in partnership with L’Etoile Properties, as it marks our entrance into the Paris real estate market, which is characterized by practically non-existent available office supply and increasingly compressing yields.
‘This investment is consistent with SFO’s commercial value-add investment programme, geared towards repositioning assets in select European markets with sustained demand and tight supply.‘
Guillaume Unglik, head of French acquisitions at L’Etoile Properties, said: ‘We are very pleased to acquire this property. It benefits from the strong fundamentals of Paris central business district and has a very high demand from occupiers. There is limited grade A supply and this property possesses obvious structural qualities associated with its fantastic location; the refurbishment project envisioned will turn this property into a great grade A building.
‘This acquisition is also our first transaction with SFO, with whom we have the ambition to build a successful partnership leading to many acquisitions in the coming years.‘
SFO has a total of $1 bn (€888 mln) of AUM. L’Etoile Properties and SFO were advised on the transaction by DIXSEPT68, PwC and Builders & Partners. The financing was provided by Aareal Bank. Rothschild & Co acted for the seller.
