EQT Real Estate I fund (“EQT Real Estate”), a fund managed by Metropolitan Real Estate (“Metropolitan”) and STAM Europe, as part of a joint venture, have completed the sale of Code to CNP Assurances, a leading French insurance group advised by investment manager AEW.
The office asset situated on Rue Lauriston in central Paris is currently undergoing a full refurbishment, which is due for completion in Spring 2019, after which it will serve as the new French HQ for software giant Adobe, who agreed a pre-let agreement for the asset earlier this month. The remaining refurbishment works will be executed by AEW.
Having acquired the asset in 2016, EQT Real Estate, Metropolitan and STAM Europe undertook a full-scale redevelopment programme, transforming an unused and derelict space into a Grade A office
building in central Paris with a range of innovative amenities. As part of this, EQT Real Estate, alongside Metropolitan and STAM, has delivered 5,800 sqm of mixed-use space, including an 800 sqm co-working area and an outside area for tenants to enjoy, as well as a landscaped roof top overlooking central Paris. As part of the joint ventures’ strategy to apply a hands on approach to development, amenities have been a key focus, and the architecturally striking asset boasts its own wellness area, gym space and bike storage facility. Code also has a potential ERP classification, and benefits from strong natural light, providing qualitative communal spaces.
Olivier Astruc, Managing Director at EQT Partners and advisor to the fund, said: “The redevelopment and repositioning of Code reflects EQT Real Estate’s core strategy to identify investment opportunities in European gateway cities, and produce groundbreaking and unique real estate assets, whilst creating sustainable value for investors.”
Edward Bates, Managing Director at STAM Europe continues: “We are delighted that CNP Assurances is the new owner of Code and that the tremendous creation of value for our investors and partners has been realized. STAM Europe continues to focus its energy and resources on opportunities with a “manufacturing to core” approach in order to produce high quality, sustainable and innovative space for the French office market.”
CBRE advised on the transaction. The investors were represented by Ashurst as legal representative and Flusin as notary. The vendor was represented by Clifford Chance as legal representative and Monassier as notary.