PGIM Real Estate has acquired an office building in Paris on behalf of its pan-European discretionary value-add fund, from a German closed-ended fund managed by GLL Real Estate Partners, a member of Macquarie Group.
Financial details were not disclosed.
The Square, a 7,000 m2 office building located on rue de Téhéran, has been fully let to Parfums Christian Dior since 2007. Built in 1928 and fully refurbished in 2007, the property is distinguished by an Art Deco façade.
'This acquisition, in the form of a complex corporate transaction, illustrates our capacity to win tenders and offer vendors flexibility and security in deal execution,' said Jocelyn de Verdelon, PGIM Real Estate’s head of France, Spain and Portugal.
'In addition, the property’s prestigious location, impressive façade and abundance of natural light will appeal to the exacting demands of institutional tenants.'
'This asset delivered excellent returns over the 12-year holding period for the shareholders of the fund and outperformed the business plan despite buying near the peak of the last cycle,' said Brigitte Schmale, fund manager at GLL Real Estate Partners.
'It is a great example of what asset selection, hands-on local asset management and a focused strategy can achieve.'
PGIM Real Estate was advised by Cheuvreux Notaires, De Pardieu Brocas Maffei, Accuracy, and Builders & Partners. Financing was provided by Crédit Agricole CIB.
GLL Real Estate Partners was advised by JLL & Catella, Wargny Katz, Gide, Reed Smith and Exponens.
