EQT's real estate fund buys Paris office property for €70m
EQT’s first real estate fund has acquired an office property located at Rue du Chateau des Rentiers in France’s capital city for more than €70m.
The Stockholm-headquartered alternative investments group said its €420m Real Estate I fund has acquired the multi-let office property located at Rue du Chateau des Rentiers in Paris.
The seller is an affiliate of Israel-listed real estate group Jerusalem Economic Corporation.
EQT said the acquisition represents EQT Real Estate’s sixth investment to date.
Built in 1987, the fully let property comprises 13,600sqm of office and storage space, a corporate restaurant and 245 parking spaces.
Olivier Astruc, director at EQT Partners and investment advisor to EQT Real Estate I, said: “Rue du Chateau des Rentiers presents a rare opportunity to upgrade an historic office site in an attractive inner Paris location.
“This acquisition further underpins our investment strategy to deliver grade-A assets fit for modern occupiers and institutional investors”.
Robert Rackind, partner and head of EQT Real Estate at EQT Partners and investment adviser to EQT Real Estate I, said the investment epitomised the strategy of the company, which was to focus “underinvested assets in European gateways cities with several value-add angles”.
He said: “We see more opportunities than ever for the fund to continue on this successful track and take advantage of the sustained global demand and local needs that exists in these markets”.
The acquisition was financed by Aareal Bank. Etoile Property Management will be property manager.