Tristan, Stam sell €250m office park in Paris to Oxford Properties

Tristan Capital Partners and Stam Europe have agreed to sell the recently­redeveloped PariSquare office complex to Canadian investor Oxford Properties for an undisclosed amount.

Tristan and Stam re­opened the 24,100 m2 building in Paris’ Bastille district in October last year after having invested over €100 mln in the project which involved the conversion of a former car park.

The asset is believed to have been sold for around €250 mln. It is fully let after Publicis Group agreed to take a 10­year lease on 21,100 m2 earlier this year.

The deal is expected to close later in 2015.

Designed by architect Jean­Francois Authier, PariSquare is an urban office campus, comprising five interconnected buildings situated around two central landscaped courtyards. The building provides amenities including a 1,650 m2 of retail space, a 210­seat auditorium, a 1,500 m2 restaurant and large roof terraces with views across Central Paris.

PariSquare was a former multi­storey car park that was comprehensively redeveloped by Credit Agricole Immobilier, delivered in Q1 2015. A joint venture between Tristan Capital Partners’ opportunistic Episo fund and Stam Europe’s Stam REI III value­add fund acquired PariSquare in 2011 under a forward purchase agreement.

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 latest transaction, Oxford will see its assets under management in Paris grow to €750 mln, a significant step towards its target to build a €1.5 bn AUM Paris portfolio by 2020.

‘Providing modern, green and efficient office accommodation, a 10­year lease to Publicis Groupe and a 25­year 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,’ said Jean­Philippe Blangy, managing director portfolio and asset management at Tristan Capital Partners.

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.’

Michel Vauclair, Senior Vice President and Chairman, Oxford Properties Group Europe said: ‘PariSquare is a great addition to Oxford’s European portfolio, which now stands at over C$7 bn 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.’

Hines France acted as acquisition adviser to Oxford Properties Group and will act as asset manager. Oxford Properties Group was also advised by Lacourte Raquin Tatar, Bredin Prat, Lasaygues & Associates Notary Office and Turnbull Associates.

In this transaction Tristan Capital Partners and Stam Europe were represented by Strategy and Corp and advised by Emeline Peltier at Olswang, Rachel Dress and Fabrice Rymarz at Racine, Arsene and SCP Leroy Reberat Brandon.

Source : PropertyEU