Blackstone Real Estate has agreed to acquire Centre d'Affaires Paris Trocadéro from Union Investment for approximately €700m, marking a premium exit that underscores the enduring appeal of prime Parisian office assets despite broader market uncertainty.
The 41,000 m² mixed-use property, strategically positioned on Place du Trocadéro opposite the Palais de Chaillot in Paris' prestigious 16th Arrondissement, represents one of the most significant office transactions in the French capital this year. Originally constructed by Société Générale in 1913 as a bank building, the asset was repositioned as a multi-let complex in the early 1990s before Union Investment acquired it in 2003 for €284m.
The transaction, which closed above the property's latest valuation following signing completion, delivered exceptional returns over Union Investment's 22-year holding period and marks the third successful exit of a large property held for more than two decades by the German fund manager's open-ended real estate funds.
"During our long holding period, we have continuously improved the rental space and service offering at Centre d'Affaires Paris Trocadéro, thereby increasing the shareholder value for our investors. Following the acquisition by Blackstone, this exceptional business centre is now entering the next phase of its development," said Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate.
What makes this transaction particularly compelling for institutional investors is the property's exposure to Paris' unique office market dynamics, where Grade A availability has remained below 2% for over a decade, a scarcity premium that creates exceptional pricing power and defensive characteristics rarely found in other European capitals experiencing oversupply challenges.
"Centre d'Affaires Paris Trocadéro is a trophy asset in one of the most sought-after locations in Paris. This acquisition underscores our confidence in the European office market and belief that the right assets in prime locations, combined with our capital and extensive asset management capabilities, continue to offer compelling opportunities for value creation," commented James Seppala, Head of Real Estate Europe at Blackstone. Karim Esch, Chief Investment Officer at Union Investment Real Estate, indicated the proceeds will fund selective investments in smaller assets at the start of a new real estate cycle to further diversify the UniImmo: Deutschland fund portfolio.
People mentioned:
- Martin Schellein, Head of Investment Management Europe, Union Investment Real Estate
- James Seppala, Head of Real Estate Europe, Blackstone
- Karim Esch, Chief Investment Officer and Member of Management Board, Union Investment Real Estate
Companies mentioned:
- Blackstone Real Estate (buyer) - Global alternative asset manager
- Union Investment (seller) - German fund management company
- CBRE (advisor) - Real estate services for Union Investment
- Thibierge Notaires (advisor) - Notarial services for Union Investment
- CMS Francis Lefebvre (advisor) - Legal services for Union Investment
- Simmons & Simmons (advisor) - Tax advisory for Union Investment
- Attal & Associés (advisor) - Notarial services for Blackstone
- De Pardieu Brocas Maffei (advisor) - Legal services for Blackstone
- Darrois Villey Maillot Brochier (advisor) - Tax advisory for Blackstone
