AXA Investment Managers - Real Assets (AXA IM - Real Assets) has announced the exchanging of contracts for the acquisition from BCSP CE Lux I Sarl and BCSP CE Lux III Sarl, affiliates of Beacon Capital Partners, of the Tour First office tower, via a share deal. The Tour First is the tallest building in France, located in the La Défense business district of Paris.
AXA IM - Real Assets undertook the acquisition on behalf of a club of investors seeking to invest in core European real estate assets. The club comprises a group of investors managed by AXA IM - Real Assets, together with Assurances du Crédit Mutuel.
The building is 231m high and comprises over 80,000m² (863,500ft²) of prime office space across 44 office floors. Tour First is currently 83% let on long leases to two global blue-chip companies and has achieved both a LEED Gold rating and a HQE/THPE certification.
Originally built in 1974, the tower was sold for 50% to Beacon Capital Partners by AXA IM – Real Assets on behalf of one of its clients in 2007. AXA IM - Real Assets and Beacon Capital Partners undertook a comprehensive €300m redevelopment programme from 2007-2011. Designed by Kohn Pedersen Fox (KPF), with Saubot-Rouit Associés (SRA) as associate architects, the redevelopment included the addition of an extra 74m in height, the implementation of flexible and efficient floorplates, as well as the provision of a wide range of amenities. Upon completion of the redevelopment, Beacon acquired full ownership of the building via a share deal.
Pierre Vaquier, CEO AXA IM - Real Assets, commented: “Having re-developed the tower between 2007 and 2011, we believe Tour First is now recognised as one of the most striking office towers in one of Europe’s foremost business districts. This transaction demonstrates our continued ability to bring together ‘clubs’ of leading international investors in the acquisition of landmark real estate assets and to position investments in coherence with market cycles. This transaction also represents a substantial investment in the European office market and matches our clients’ exacting requirements for high quality core assets. It demonstrates our confidence in the strength and prospects of the Paris office market.”
AXA IM - Real Assets was advised by De Pardieu Brocas Maffei, Etude Cheuvreux, Deloitte and Egis. Beacon Capital Partners was advised by Linklaters, Etude Wargny Katz, Cairn, Taj, Debevoise and EY.
