Global real estate investment manager Nuveen Real Estate has acquired an office on rue Jobbé Duval, Paris, on behalf of the Cityhold Office Partnership (CHOP) which it manages.
Financial details were not disclosed.
The 7,000 m2 property is currently fully let to telecoms provider Orange.
Nuveen said that the acquisition was in line with CHOP’s strategy of targeting core and value-add properties in key European Tier 1 cities, with potential for renovation in future, also supported by the city’s low vacancy rate and lack of short-term supply.
The property, which was built in the 1930s, is set over six floors, with a roof terrace on the top floor offering views over Paris, including the Sacré-Cœur and the Eiffel Tower. It benefits from an attractive industrial-style façade and is located in the 15th arrondissement, south-west of Paris.
Liz Sworn, fund manager at Nuveen Real Estate, commented: 'We are pleased to have been able to acquire this asset in Paris, that offers a strong tenant covenant and potential for future improvements.
'Due to its location in the vibrant 15th arrondissement, we believe that it should help provide resilient returns for our investors for years to come. The ongoing pandemic has accelerated occupier trends within the office market, increasingly highlighting the importance of collaboration, wellbeing and health and safety, so we plan to work closely with the tenants in the future to ensure we are providing a safe and effective workplace.'
CHOP is a pan-European office venture managed by Nuveen Real Estate on behalf of four investors, including TIAA, AP1 and AP2. Launched in 2015, the long-term partnership has strong growth ambitions and is currently targeting both core and value-add office investments in Tier 1 cities across Europe, including Paris, Berlin, Munich, Hamburg, Frankfurt, Amsterdam, Madrid, Milan and London.
The partnership’s portfolio includes 70 St Mary Axe in the City of London, 36 rue La Fayette in Paris, Burstah Offices in Hamburg and EDGE Olympic in Amsterdam. In addition, the partnership owns Morland Mixité, a mixed-use project currently under development in Paris.
Nuveen Real Estate’s AUM across European offices now sits at around €8 bn.
Crédit Agricole CIB acted as the lender for the acquisition via a green loan.
Nuveen was advised on this transaction by Gide Loyrette Nouel (legal), Linklaters (structuring), Alamo (technical), Archers (financing legal) and Etude Wargny Katz (Samuel Champeaux – notary).