New investment management boutique Tokoro Capital, established by two former Brockton Capital executives, Sanjay Sethi and Max Bassadone, has made its first deal buying an office property in Paris.
Financial details were not disclosed, though market sources say the value is around €30 mln.
The property at 86 Rue De Courcelles is an office building in the city's 8th arrondissement and was purchased from a joint venture between Angelo Gordon and S2i Partners. It is currently vacant following a major refurbishment, with Tokoro Capital having already begun to sound out potential interested occupiers.
Bassadone, Tokoro's co-founding partner, commented: 'This acquisition presents a rare opportunity to invest in a prime central Paris location that fits with our strategy as active managers able to generate yield pick up even in lower risk investments.'
The off-market acquisition is the first made by Tokoro Capital since it launched in April 2020 having closed its maiden Fund, TKO-I LP with some €250 mln of investable capital, assuming leverage. It is targeting office opportunities in the €20 mln to €100 mln value range with an initial focus on Paris and London.
Formerly a hotel particulier dating back to 1864, the recent refurbishment included a new roof, windows, internal stairwell and amends to the internal floorplates, delivering around 1,100 m2 of grade-A office space across four floors behind a restored façade. The building also benefits from an 86 m2 terrace on the second floor and 110 m2 courtyard. The property is designed to achieve a Breeam ‘Very Good’ rating.
Sanjay Sethi, co-founding partner at Tokoro Capital, added: 'The future of the office points towards beautiful touchdown spaces offering a carefully curated mix of indoor and outdoor space, which is exactly what 86 Rue De Courcelles offers. As we see tenants re-evaluating how to occupy the office going forward, we see smaller buildings having an even greater reach in terms of tenant demand. This, coupled with the current appeal to tenants of low rise versus high rise buildings, has led to us already seeing strong interest from a range of tenants.'
Tokoro was advised by Goodwin Proctor, CC Notaires, PWC and JLL.
AG / S2i were advised by Lacourte Raquin Tatar, Allez & Associés Notaires and Deloitte.
