Following the recent announcement of the Publicis Group’s letting of 21,100 m2 at PariSquare on a new 10-year lease, Tristan Capital Partners and STAM have agreed to sell the asset to Oxford Properties Group with the deal expected to close later this year.
Designed by Jean-Francois Authier (SAA Architecture), PariSquare is a newly developed 24,100 m2 urban office campus, comprising five interconnected buildings situated around two central landscaped courtyards. The building provides outstanding amenities with 1,650 m2 of retail space, a 210-seat auditorium, a 1,500 m2 restaurant and large roof terraces with views across Central Paris. Formerly a multi-storey car park, PariSquare is located in the 11th arrondissement of Paris, near the Place de la Bastille and Place des Vosges, an emerging ‘live-work-play’ destination that benefits from excellent transport connectivity, strong office fundamentals and a vibrant cultural, retail and restaurant scene.
The acquisition represents Oxford’s third investment in the Paris market following its purchases of 32 Rue Blanche in 2014 and 92 Avenue de France earlier this year. As a result of the transaction, Oxford will see its AUM in Paris grow to approximately €750 mln, a significant step towards its target to build a €1.5 bln AUM Paris portfolio by 2020.
Jean-Philippe Blangy, managing director portfolio and asset management, Tristan Capital Partners said: “Providing modern, green and efficient office accommodation, a 10-year lease to Publicis Groupe and a 25-year lease with Semaest for the seven retail units, PariSquare meets all the investment criteria for international core investors looking for quality investments in the centre of European capital cities. The asset’s successful redevelopment, which meets all the requirements of a new breed of occupier, has allowed us to generate the expected returns for our investors and we have decided to sell this investment in order to focus on new opportunities elsewhere.”
Antoine de Broglie, chairman of STAM EUROPE added: "This investment, managed by the STAM team for the joint venture between our two funds, has been challenging but successful in terms of end product and financial returns. The leasing to a CAC 40 tenant as well as the sale to an international quality investor is a tribute to both the investment vision of the partners and management skills of our team."
Michel Vauclair, Senior Vice President and Chairman, Oxford Properties Group Europe said: “Completing our third acquisition in Paris over the last 12 months reinforces our commitment to this market and our ability to transact quickly to secure the right opportunities. PariSquare is a great addition to Oxford’s European portfolio, which now stands at over €7 bln in AUM across London and Paris, and is consistent with Oxford’s European strategy to focus on growing its exposure to the Central Paris market, targeting modern, efficient office product in ‘edge of CBD’ locations that are expected to outperform as a result of infrastructure improvements and changing occupier dynamics. Furthermore, this transaction provides Oxford the opportunity to develop a relationship with the Publicis Group, a global leader with operations in a number of Oxford’s other markets worldwide.”
Source: Oxford Properties Group
