pbb Deutsche Pfandbriefbank has agreed a €68m medium-term facility for Orchid, a joint venture between InfraRed Capital Partners and Générale Continentale Investissements. The funding is intended for the acquisition of the T9 office tower located in Montreuil, eastern Paris.
The T9 Tower is located near to the city hall, with the area having benefited from extensive regeneration, including the opening of a new shopping centre, residential buildings and a new cinema and theatre. The building comprises 42,000m² of office space including a staff restaurant and 386 parking units. The tower was fully refurbished in 2009 and has achieved the green certification Haute Qualité Environnementale.
Norbert Müller, head of real estate finance continental Europe west at pbb Deutsche Pfandbriefbank, said: "pbb Deutsche Pfandbriefbank is proud to support Orchid with this acquisition of the T9 Tower. We also look forward to further transactions with InfraRed Capital Partners and Générale Continentale Investissements across Europe.”
Cédric Vallin, responsible for French investments at InfraRed, said: "We are delighted to expand our French portfolio with this quality asset. Our strategy on this building is to re-think the positioning by improving the services and the common areas, setting more competitive rents and establishing a new and active marketing campaign. This will enable us to realise the full potential of the asset and to reap the benefit of the local regeneration."
Raphael Raingold, head of investments at GCI, said: "T9 office tower matches GCI’s target segment of accessing quality assets in growing markets. The local authorities have significantly re-urbanised the area in recent years. With the asset repositioning we plan to implement, we are confident we will attract quality tenants for the vacant space."
The vendor was advised by BNP Paribas Real Estate and Cushman & Wakefield. The buyer’s advisors included Gide and Etude Le Breton & Associés for the acquisition and Olswang for the debt financing.
