AXA Investment Managers - Real Assets has completed the acquisition of Tour Norma, a development site in Puteaux, next to La Défense business district in Paris, France, on behalf of one of its clients. The project will start in September 2016 on a speculative basis, taking advantage of a definitive building permit for the construction of a new 18,500m² office building which was previously obtained by developer REDMAN.
The building is designed by architecture Agencies Lobjoy-Bouvier-Boisseau and Philip Ridgway and will offer 7 storeys of office accommodation, a restaurant, a show room as well as nearly 300 underground parking spaces. It will be built on the site of Tour Norma, an out-dated office high-rise building, which will be demolished. The project will be managed by developer REDMAN who expects to deliver the scheme in Autumn 2018.
The project will comprise a number of important sustainability features for the benefit of future tenants’ wellbeing (Well ready®) and to reduce the overall environmental impact of the building; it is targeting the BREEAM Excellent certification, HQE, and BioDiverCity labels. In line with its ambition to be a globally sustainable business, AXA IM - Real Assets is targeting 75% of total direct property assets under management to be certified with reputable sustainability labels by 2030. AXA IM - Real Assets recognises the importance of implementing such measures as an industry leader in sustainability, helping to reduce operating costs and improve the long term value of assets, for the benefits of investor clients and tenants.
Located in Puteaux the project sits on the corner of Jean Jaurès, Arago and Paul Lafargue streets, close to Europe’s leading business district, La Défense. It is a five minutes’ walk from Esplanade de La Défense metro station on line 1. Unlike the majority of La Défense, it will offer low rise buildings advantages and street level access for both cars and pedestrians.
This transaction follows AXA IM - Real Assets’ recent acquisition of Tour First in La Défense, the tallest building in France on behalf of a club of investors. It also adds to AXA IM - Real Assets’ portfolio of Parisian assets and developments, including QU4DRANS, a major scheme comprising 86,000m² of office space across four buildings Paris’ 15th arrondissement. AXA IM - Real Assets is one of Europe’s most prolific developers, with an established track record of successfully managing and executing 250 development projects in eight European countries for a total of €13.2bn since 2000 involved at every stage of the process from refurbishment and redevelopment, through to large scale speculative development. It also has €10.5bn of projects currently under development, €3.9bn of which are in France.
Nathalie Charles, head of asset management & transactions for Southern Europe and pan-development leader, at AXA IM - Real Assets, commented: “This acquisition highlights the attraction of key office markets to our clients and, in particular, La Défense and its immediate surrounding area. With slowing levels of office supply in the vicinity and delivery of new buildings not expected until after 2018, we expect to generate satisfactory levels of demand from occupiers. Tour Norma reconversion project also demonstrates our ability to seek out development opportunities for clients with different risk/return profiles”.
