PGIM Real Estate has acquired a 6,000 m² office building located at 42-44 rue de Paradis on behalf of investors in a discretionary pan-European core-plus real estate fund. PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
The transaction follows the fund’s recent acquisitions of a portfolio of 27 supermarkets in Germany and a retail asset in Hamburg’s city centre, and was made through an OPCI (Organisme de Placement Collectif en Immobilier), a French tax-translucent SPV dedicated to the investments of the fund in France.
The office is located at the eastern edge of the central business district and is within 500 meters of Gare du Nord and Gare de l’Est, offering direct transportation links to many of Europe’s largest cities. The area also attracts small to medium-sized firms, particularly in the technology sector.
Built in 1886, and most recently refurbished between 1982 and 1986, the building will be repositioned to meet the tailored needs of the area’s fast-growing technology firms through a progressive capital expenditure program designed to improve the quality of the asset, and provide services in line with the tenants’ expectations.
“This transaction reflects PGIM Real Estate’s ability to leverage our on-the-ground presence and our strong local knowledge and relationships to successfully acquire attractive off-market assets,” said Jocelyn de Verdelon, head of France, Spain & Portugal for PGIM Real Estate. “In addition, the acquisition provides an opportunity to create value for our investors by capturing reversionary potential and repositioning the asset to attract new and diverse office and retail tenants.”
Wargny Katz & Associés, De Pardieu Brocas Maffei, Strategies & Corp, and Swiss Life REIM (France) advised PGIM Real Estate. The transaction was financed by BNP Paribas, which was advised by Cheuvreux and Mayer Brown.
