UBS Asset Management's Global Real Estate business has completed the sale of the Les Saisons office building and its associated planning permissions in Paris-La Défense, on behalf of the UBS (Lux) Euro Value Added Real Estate Fund, to a subsidiary of Abu Dhabi Investment Authority (ADIA) for approximately €55m.
UBS acquired the 6,700m2 asset in April 2006 and – having identified its potential based on its location at the gateway to Europe’s leading business district, La Défense – subsequently implemented a significant repositioning plan. The strategy targeted unlocking latent value through securing necessary planning permissions to enable its demolition and reconstruction into a significantly larger 51,200m2, grade-A office development, known as Tour Alto. The buyer signed a €200m property development contract with a subsidiary of Bouygues Construction, LinkCity IDF, to develop the 38-storey tower.
As part of the transaction, UBS will remain actively involved in the management of the redevelopment programme for at least the next 12 months, in order to ensure the smooth and timely realisation of certain remaining milestones. Detailed design work will continue during this time, with demolition of the currently vacant Les Saisons building expected to commence in late-2016 and completion of Tour Alto, a 150m tall landmark office development, anticipated for 2020. Moving forward LaSalle will be the asset manager for the project.
This disposal is the last remaining asset to be sold from UBS-EVA, bringing the Fund to a close.
Patrick Jenvrin, head of global real estate – France at UBS Asset Management and senior portfolio manager for UBS-EVA, commented: “This sale is of great significance to both our asset management and investment teams who have worked tirelessly over the past five years to identify and realise the optimum repositioning strategy for Les Saisons, enabling this prime located asset to reach its full potential with an ambitious new design.
“Our ability to attract an investor of such calibre is testament to the value that has been recognised in this asset under its new guise as Tour Alto, and we are looking forward to witnessing the landmark new scheme come to life over the coming years.”
For the vendor, Herbert Smith Freehills acted as legal advisor with Lacourte, Raquin Tatar and TAJ as tax advisor, while Wargny Katz & Associés provided notary services and GR Projets Immobiliers acted as technical advisor. The purchaser was advised by LaSalle Investment Management (asset manager), Allen & Overy LLP (legal & tax advisor), Allez & Associés (notaries), Aliuta (technical advisor) and PwC (financial advisor).
