Meyer Bergman and Thor Equities have reportedly agreed to sell a retail-led mixed-use building on the Champs-Elysees in Paris for about €490 mln.
The buyer is an unnamed Qatari investor, according to a news report by agency Bloomberg. The reported sales price, if correct, would reflect a 96% increase on what Meyer Bergman and Thor Equities paid for the property less than three years ago. Meyer Bergman and Thor Equities declined to comment on the market rumour.
Thor Equities, a New York-based urban property specialist, and European retail property fund manager Meyer Bergman acquired the 10,200 m2 Haussmann building at 65-67 Avenue des Champs-Elysées for about €250 mln in an off-market transaction in November 2013.
Meyer Bergman's second value-add fund, Meyer Bergman European Retail Partners II (MBERP II), is the majority owner of the joint venture. This was the second time that Meyer Bergman and Thor Equities joined forces, with the companies partnering initially to purchase London’s Burlington Arcade in 2010.
The property at 65-67 Avenue des Champs-Elysées comprises street-facing retail units occupied by sports brand Nike and US fashion giant Tommy Hilfiger. The upper levels feature offices and high-end residential units.
The asset is largely let to Nike, which will soon occupy the space being surrendered by Tommy Hilfiger, international retail property agency CWM, which advised the fashion brand, said in a statement on Friday.
65 Avenue des Champs-Élysées spans three floors and sits next to other global brands including Nike, Longchamp and Ladurée. Nike, located at 67 Avenue des Champs-Élysées, has agreed to lease the entire property from Meyer Bergman and Thor Equities, once vacated by Tommy Hilfiger, to significantly expand its Parisian flagship.
Based at the property since 2010, Tommy Hilfiger will now focus its Paris retail operations around the company’s flagship store on Boulevard des Capucines and at Beaugrenelle shopping centre, in the city’s 15th arrondissement.
Chris Igwe of CWM, said: 'Tommy Hilfiger – one of the world’s most recognisable fashion brands – has been based on the Champs-Élysées for the past six years but due to the phenomenal success of its flagship store on Boulevard des Capucines and the Beaugrenelle shopping centre site, a strategic decision was made to focus its retail efforts in Paris on these locations exclusively. CWM ensured a significant premium was negotiated for the brand as this strategy was realised and the lease surrendered.'
