LaSalle Investment Management ("LaSalle") has made its first acquisition in continental Europe with the purchase of Le Blériot office building in Suresnes, Paris for a figure close to 100 million. The acquisition of the 21,500-m² grade-A office building was made by LaSalle on behalf of the LaSalle Paris Office Ventures fund ('LPOV') from Standard Life Investments and marks its first acquisition for the fund.
The 21,500-m² grade-A Le Blériot office building.
LaSalle's recent E-REGI annual commercial property index suggested that Paris continues to have sustained growth prospects, due in part to its high wealth levels and also its position as a major hub of French administrative, economic and financial activity. It believes that the local economy in Paris is more resilient to the downturn than other major European locations.
Andy Watson, International Director, LaSalle Investment Management said, "For over two years we have showed discipline in waiting for prices to adjust before investing capital in the LPOV fund. This is the first French acquisition we've made in the last 10 months and reflects our belief that when the fundamentals are right, now is the right time to reenter the market. We have capacity to do many more core acquisitions for this fund in the short term."
Completed in 2005, Le Blériot overlooks the Seine near La Défense on the quai Marcel Dassault, Suresnes and is the headquarters of multinational Acergy, which has just renewed its commitment to the building by signing a nine year lease, including a six year firm period. Standard Life acquired the building as a development project in September 2003.
Jones Lang LaSalle's investment department acted on the deal. Legal advisers were Clifford Chance and De Pardieu Brocas Maffaei for the vendor and the purchaser respectively. Fiscal advice to the purchaser was from Arsene Taxand with debt finance provided by LBBW.
Source: Citigate Dewe Rogerson