US private equity firm Lone Star has signed an agreement to take control of Coeur Défense in central Paris, Europe’s largest office complex.

US private equity firm Lone Star has signed an agreement to take control of Coeur Défense in central Paris, Europe’s largest office complex.

Coeur Défense was valued at €1.35 bn in September 2012 and is currently more than 20% vacant. It is held within a CMBS structure called Windermere XII worth some €1.6 bn.

A formal notice of information published on Wednesday reveals that a special purpose vehicle controlled by Lone Star Real Estate Fund III has agreed with LB Dame SCA, the formal owner of Coeur Défense, to acquire 100% of its share capital.

The deal has yet to be cleared by the French competition authorities.

Coeur Défense was acquired in July 2007 by Lehman Brothers, Atemi and GE Pension Fund for €2.1 bn from Unibail-Rodamco and Goldman Sachs Whitehall Funds, financed by a €1.6 bn five-year senior loan.

The special purpose vehicle set up by the borrowers filed for court protection in summer 2008, and the scheme has since been at the centre of a conflict between the owners and the debt holders.

Lone Star is a private equity firm that invests in distressed assets. The firm declined to comment when contacted about the deal by PropertyEU.