Blackstone to acquire landmark Paris asset for €700m

Blackstone Real Estate is set to acquire the Centre d'Affaires Paris Trocadéro in Paris's 16th arrondissement, from Union Investment for approximately €700 mln. 

Centre d'Affaires, Paris

This price for the mixed-use property surpasses its latest appraised value. 
The deal has been signed, with the final closing anticipated in the fourth quarter of this year. The property, with just over 41,000 m2 of rentable space, is located on Place du Trocadéro, and also includes 57 luxury apartments, restaurants, and cafes. 
Originally built in 1913 by Société Générale as a bank, the building was converted into a multi-tenant complex in the early 1990s. Union Investment purchased the Centre d'Affaires Paris Trocadéro in 2003 for €284 mln for its UniImmo: Deutschland fund. Over its 22-year ownership, the property has provided strong returns and significant capital appreciation for the fund.
Martin Schellein, head of Investment Management Europe at Union Investment Real Estate, said: "During our long holding period, we have continuously improved the rental space and service offering at the Centre d'Affaires Paris Trocadéro, thereby increasing the value for our investors. Following the acquisition by Blackstone, this exceptional business centre is now entering the next phase of its development."
Karim Esch, CIO and member of the management board of Union Investment Real Estate GmbH, commented: "We intend to use the proceeds from the sale of the Centre d'Affaires Paris-Trocadéro and other property sales for UniImmo: Deutschland to selectively invest in smaller properties at the beginning of a new real estate cycle, further diversify the fund's portfolio, and generate higher returns in line with our ESG standards."
James Seppala, head of Real Estate Europe at Blackstone, added: "The Centre d'Affaires Paris Trocadéro is a prestigious asset in one of Paris's most desirable locations. This acquisition underscores our confidence in the European office market and our belief that the right properties in prime locations, combined with our capital and extensive asset management capabilities, continue to offer attractive value creation opportunities."
This sale is Union Investment's third successful disposition of a major property held for over two decades, following sales of the Fünf Höfe in Munich and Finsbury Circus House in London.
For this transaction, Union Investment received advice from CBRE, Thibierge Notaires, CMS Francis Lefebvre, and Simmons & Simmons. Blackstone's advisors included Attal & Associés, De Pardieu Brocas Maffei, Darrois Villey Maillot Brochier, and CBRE.