Invesco Real Estate invests Asian capital into French office market (FR)

Invesco Real Estate (IRE) is pleased to announce the acquisition of Tour Prisma, a grade-A office tower in Paris La Défense, regarded as Europe’s premier business district. The 23,152 m² property represents the initial purchase by IRE on behalf of its new separate account client, an Asian state pension fund.

Rory Morrison, Senior Director, Fund Management comments: “We are delighted to have secured this newly-refurbished, 22-story office tower for our client, at what we believe to be an opportune moment in the investment cycle, given the substantial discount achieved compared to pricing for core Paris CBD investments. The La Défense business district is home to some of the biggest French firms and is the corporate headquarters for many international businesses, ensuring its place in the hierarchy of key business locations within Europe.

Tour Prisma fits our client’s investment mandate well given its strong real estate fundamentals. It is a high quality and modern property, having been fully renovated in 2011, in a prominent and highly accessible, business-focused location. The property is let to strong tenants, and benefits from an average unexpired lease term of over eight years, providing stable cashflow at an attractive yield.”

La Défense, located west of Paris, is home to 2,500 companies focused on the computing services, energy, finance and insurance industries. It has 1,500 corporate headquarters of both French and international firms and a total workforce of 185,000 people. Tour Prisma is home to high quality occupational tenants including French law firm Fidal as the main tenant; duty-free operators Aelia, part of the Lagardère group; Wipro Technologies; Polycom communications; and software provider Unit 4.

“We are assessing additional opportunities in Europe, focussed initially in France and Germany, for our client to enable them to build a high quality European property portfolio,” says Rory.

Tour Prisma was purchased from Ivanhoé Cambridge. In the transaction, the buyer was advised by Linklaters, Etude Begon Bonneau Brulon, Arsene and PWC. The vendor was advised by Jones Lang Lasalle, Allen & Overy and Etude Wargny Katz.

Source: Invesco Real Estate

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