Partners Group is acquiring CB16 Tower in the La Défense business district of Paris for €170 mln, a significant discount to the price the asset last traded for in 2010.
The 28-storey CB16 Tower provides a total floor area of 30,000 m2. The property was constructed in 1971 and underwent a complete renovation in 2003.
Partners Group, a global private markets investment manager, has agreed to purchase the property on behalf of clients.
Mike Bryant, co-head of private real estate at Partners Group: 'La Défense is experiencing a steady recovery in demand for office space compared to previous years and the acquisition of CB16 Tower is a great way to gain exposure to the area at a good point in the cycle.
'Given the visibility on income this investment brings and the quality of the building, the tower fits well with Partners Group's relative value focus on acquiring office property below replacement cost in decentralised locations in Tier 1 cities, where pricing does not yet reflect attractive fundamentals.'
Discount
The vendor was not named in Partner Group's press release on the deal.
The last owner on record is Parlyo II, a fund managed by Geneva-based Hardstone Services on behalf of a 'major mid-Eastern sovereign investor'.
PropertyEU reported in October 2010 that Parlyo II had acquired the property from Aberdeen Asset Management's frozen Degi Europe open-ended fund for a price close to valuation at the time of €220 mln. German lender pbb Deutsche Pfandbriefbank provided €106 mln financing to the buyer.
It would seem therefore that the latest sale of C16 took place at a significant discount to the 2010 deal price and valuation.
Partners Group said it will partner with local operator Aquila Asset Management to execute a value-added business plan including renovation 'in order to improve the property's occupancy'.
Based in Zug, Switzerland, Partners Group manages €57 bn of investments in private equity, private real estate, private infrastructure and private debt.
