Tokoro Capital has acquired 86 Rue De Courcelles, an office building in a super prime location in the iconic 8th Arrondissement of Paris, from a JV between Angelo Gordon and S2i Partners. The property is currently vacant following a major refurbishment, with Tokoro Capital having already begun to sound out potentially interested occupiers.
The off-market acquisition is the first made by Tokoro Capital since it launched in April 2020 having closed its maiden Fund, TKO-I LP with c. €250m of investable capital, assuming leverage. It is targeting office opportunities in the €20m to €100m value range with an initial focus on Paris and London, Europe’s two most liquid and transparent real estate markets, but will consider assets in other European gateway cities.
Formerly a Hotel Particulier dating back to c.1864, the recent refurbishment included a new roof, windows, internal stairwell and amends to the internal floorplates, delivering c. 1,100m² of best in class Grade-A office space, across four floors behind a carefully restored external façade. Following significant landscaping and external works, the building also benefits from an abundance of outside space including an 86 sqm terrace on the second floor and 110m² courtyards.
Max Bassadone, Co-Founding Partner at Tokoro Capital, commented: “This acquisition presents a rare opportunity to invest in a prime central Paris location that fits with our strategy as active managers able to generate yield pick up even in lower-risk investments.”
Sanjay Sethi, Co-Founding Partner at Tokoro Capital, added: “The future of the office points towards beautiful touchdown spaces offering a carefully curated mix of indoor and outdoor space, which is exactly what 86 Rue De Courcelles offers. As we see tenants re-evaluating how to occupy the office going forward, we see smaller buildings having an even greater reach in terms of tenant demand. This, coupled with the current appeal to tenants of low rise versus high rise buildings, has led to us already seeing strong interest from a range of tenants.”