Choiseul REIM has concluded the sale of a mixed-use complex of approximately 8,000m² of retail, office and residential space for an amount in excess of €600m. Located in a prime location, at the corner of 12-14 Castiglione and 235 Saint-Honoré in the 1st arrondissement of Paris (France), the asset benefits from its immediate proximity to the iconic Place Vendôme.
This off-market transaction was carried out by Choiseul REIM on behalf of the 12/14 rue de Castiglione Paris property company, within the framework of a VEFA (Sale in the State of Future Completion) contract concluded with the Kering group in January 2023. Choiseul REIM will also carry out a complete renovation program of 12/14 Castiglione over the next 30 months in order to deliver a high-end building meeting the highest market standards in the first quarter of 2025. At the end of the project, the building will meet the highest requirements in terms of certification and will be certified Breeam Excellent, HQE Exceptional and NF Habitat Très Performant. Upon completion, the prestigious Gucci brand of the Kering Group will occupy up to 80% of the space. Until then, Choiseul REIM will remain the project’s delegated project manager in order to support its partner, Kering.
Benjamin Hanouet, Chairman and CEO of Choiseul REIM, commented: "This value-add operation reflects the strategy and know-how of Choiseul REIM's teams, which consists of optimising the value of real estate portfolios through ambitious restructuring programs in prime locations, so that they meet the new expectations of a market characterised by the decompression of rates. I would like to highlight the remarkable work of our teams who have shown real commitment to this project and great agility in dealing with any complexities encountered, all with tight control of the deadlines, in order to crystallize value for our Sponsors".
Mathieu Gayral, Executive Director of Real Estate Finance at Natixis, added: "The 12/14 Castiglione project is a perfect example of how finance and asset management teams can work hand in hand and be agile enough to adapt to rapidly changing market conditions. We have enjoyed working on a project that will provide structure to this emblematic district of Paris, alongside a quality operator that has demonstrated its mastery of human, operational and financial issues."
