Partners Group, the global private markets investment manager, has agreed to acquire an office building, CB16 Tower, in the La Défense business district of Paris, France, on behalf of its clients. The purchase price for the building is €170m.
CB16 Tower is a 28-story building with a total floor area of 30,000 m² situated in one of Paris' prime business districts, with excellent public transport links to the Greater Paris area. Constructed in 1971, the building underwent a complete renovation in 2003 to provide an efficient, modern, high-standard property with green certification. Partners Group will partner with local operator Aquila Asset Management in order to actively manage the property on behalf of existing and future tenants, with plans to execute a value-added business plan including renovation in order to improve the property's occupancy.
Mike Bryant, Managing Director, Co-Head Private Real Estate, Partners Group, comments: "La Défense is experiencing a steady recovery in demand for office space compared to previous years and the acquisition of CB16 Tower is a great way to gain exposure to the area at a good point in the cycle. Given the visibility on income this investment brings and the quality of the building, the tower fits well with Partners Group's relative value focus on acquiring office property below replacement cost in decentralized locations in Tier 1 cities, where pricing does not yet reflect attractive fundamentals."
