Norges Bank Investment Management, which manages the Norwegian Government Pension Fund Global, and AXA Real Estate Investment Managers, acting on behalf of AXA France Insurance Companies, announce that their Paris office joint venture partnership (the 'JV'), launched in August 2011, has exchanged contracts to acquire by the end of the year a portfolio of prime Paris offices for 290 million (excluding transfer taxes), reflecting a passing cap rate of 6.0%.
This second acquisition by the JV has been negotiated off market and comprises three office properties, with some retail units on ground floors: two in Paris and one in Boulogne-Billancourt, in the Western Business District of Paris. The details of the assets are as follows:
28 32 Victor Hugo Paris 16 A prime office asset located in the heart of the Paris central business district in the immediate vicinity of Place de l'Etoile. It has a total GLA of approximately 9,500 m², of which 900 m² of retail, arranged over five basement levels, a ground floor and seven upper levels. The property is fully let.
99 Avenue de France Paris 13 Located in the Rive Gauche business area in the 13th district of Paris, the asset has a total GLA of approximately 14,300 m², of which 4,600 m² of retail, arranged over two basement levels, a ground floor and eight upper levels. It is fully let.
Le Prélude Boulogne-Billancourt A headquarter office building located within Boulogne-Billancourt, in the established Western Business District of Paris. It has a total GLA of approximately 8,200 m² arranged over three basement levels, a ground floor and six upper levels. It is fully let to a single strong covenant tenant.
The JV between Norges Bank and AXA Real Estate, acting on behalf of AXA France Insurance Companies, was launched in August 2011 to target co-investment opportunities in the Paris office market. The first transaction for the JV comprised the sale to Norges Bank of a 50% interest in seven assets from AXA France Insurance Companies' Paris office portfolio with a total value of 1.4 billion.
AXA Real Estate provides asset management services to all the properties held in the JV.
Pierre Vaquier, Chief Executive of AXA Real Estate, said: "This latest acquisition for our joint venture with Norges Bank represents an excellent opportunity to secure the ownership of three prime, well located assets which benefit from a diverse base of high covenant tenants, delivering strong income for the investors. It also reflects AXA Real Estate's ability to source high volume, off market deals on behalf of our clients and partners, utilising our experienced in-house transaction team."
"We look forward to continuing our work with Norges Bank in sourcing further exciting opportunities for the partnership."
Source: FTI Consulting