A partnership between a real estate investment fund co-managed by Tristan Capital Partners and AEW Europe and the STAM REI III investment fund managed by STAM EUROPE is to transform a multi-story car park in the Bastille area of central Paris into a prime office and retail asset, after acquiring the property under a forward purchase contract with Crédit Agricole Immobilier.
Ric Lewis, Tristan CEO said: "It is very difficult in this market environment to find the gems in a prime core area such as central Paris to reach the target returns of our flagship EPISO opportunistic fund, so I'm particularly pleased that our investment team had the vision to see the potential in this deal.
"It is especially gratifying to complete this transaction with our long term friends at STAM."
Antoine de Broglie, President STAM Europe said: "This opportunity completes the investment program of STAM REI III with a large exceptional asset. This deal is a tribute to the sourcing capabilities of our team in a difficult market period. We believe that our joint venture with AEW/Tristan will prove fruitful in future deals."
Rob Wilkinson, CIO at AEW Europe added: "This transaction plays to the strengths of the AEW Europe platform and its extensive experience in the Paris market."
The car park was acquired from Credit Agricole Immobilier in a forward purchase operation jointly by the European Property Investors Special Opportunities, L.P. (EPISO) Fund and the STAM REI III investment fund. STAM EUROPE will act as asset manager for the joint venture.
The building will be converted into 25,000 m² of office and 2,000 m² of retail space, in compliance with the highest French environmental standards.
Cameron Spry, Head of Investment at Tristan said: "We saw the investment opportunity presented by the potential uplift in value due to the city of Paris' plans to regenerate the northern Bastille area to the east of the central business district.
"This will turn the neighborhood into a more dynamic mixed use commercial hub of offices and retail and transform the area from its current focus on the wholesale retail sector."
Etienne Marcot, CEO of STAM EUROPE said: "Carré Breguet will be the first 'green' energy saving efficiency compliant redevelopment in the center of Paris and we are particularly proud to lead what we believe will be a key value creation strategy for the coming years."
Source: Bellier Financial