M&G Real Estate, the real estate fund management arm of M&G Investments, has acquired the Greenwalk office building in Suresnes, near Paris, from a joint venture managed by AXA-IM Real Assets for €126.5 mln.
Located in the city’s western business district, the 23,820 m2 building was bought on behalf of M&G European Property Fund managed by David Jackson and Simon Ellis.
The property is multi-let to Phillips, the global technology company, and various multinational insurance companies.
The acquisition is the largest carried out so far by M&G Real Estate in France. The company's French portfolio currently includes over 200,000 m2 of assets across the office, logistics and retail sectors, collectively valued in excess of €432 mln.
'This major acquisition further demonstrates our continued commitment to expanding our core continental European portfolio and follows the strategy of acquiring well-leased, high-quality assets in office sub-markets where we see strong relative rental growth potential,' said Jackson.
Olivier Vellay, head of acquisitions, continental Europe, said: 'France is one of the largest and healthiest economies in continental Europe and the Greater Paris region will soon be bolstered by the Grand Paris infrastructure project and, in a few years’ time, the 2024 Olympic Games. Greenwalk is located in one of the Paris submarkets, which is set to benefit from location-enhancing structural changes. We expect the demand for offices located in the bordering areas of the central business district and La Defense to grow as cost-conscious occupiers look to capitalise on lower rents.'
