AXA Real Estate Investment Managers announced that it signed 96 leases representing a total of 175,000 m² of space across its French office portfolio in 2011, a significant increase of 23% on a total of 142,000 m² let in 2010. Of the 96 lettings, 58, representing 63,000 m², were new leases, while the remaining 38, accounting for 112,000 m² of space, comprised lease renewals and extensions.
AXA Real Estate also announced the pre-letting of the entire landmark building 17 Avenue Matignon to the international law firm Hogan Lovells on a long term lease. The building, developed by AXA Real Estate, will serve as the French Headquarters of Hogan Lovells and comprises 7,000 m² of prime office space. Located in Paris 8th arrondissement, the building is managed by AXA Real Estate on behalf of an institutional client and is due for delivery in April 2012.
This marquee letting has built upon an impressive 2011 for AXA Real Estate. Despite difficult economic conditions during the year, AXA Real Estate witnessed an increase in demand for high quality and energy efficient office space. 2011 also saw the delivery of several new high-profile multinational tenants to the AXA Real Estate French office portfolio. The largest new office letting of 2011 was at AXA Real Estate's Osmose building in Toulouse, where the entire building, representing 13,000 m² was let to Airbus, a leading aircraft manufacturer.
As well as welcoming a number of high quality new tenants, AXA Real Estate has successfully completed a significant number of lease renewals, including those with Areva, Eramet, Natixis and Philips France.
Matthieu Ropert, Head of Letting Transactions, France, at AXA Real Estate, commented: "2011 has been an excellent year for lettings, not only for the volume we have achieved, but also for the level of rents we have accomplished within the French office market. As well as welcoming a host of high-profile new tenants, a number of existing occupiers have signed lease renewals, demonstrating the quality and attractiveness of our assets, particularly within our office portfolio.
"Their choices justify our commitment to sustainability through the implementation of 'green leases', as well as underlining our ability to adapt to, and continually serve, our tenants' and clients' needs. The momentum garnered in 2011 has continued into 2012 and the pre-letting of 17 Avenue Matignon, a landmark new development in Paris, to such a respected and global firm as Hogan Lovells marks a strong start to 2012 for AXA Real Estate. Our pipeline for the remainder of 2012 remains strong with a number of advanced negotiations underway for further major new transactions."
Source: FTI Consulting