Carried out with Ardian, this transaction was carried out on behalf of the pan-European core fund, M&G European Property Fund, in accordance with its long-term objectives of increasing its exposure to France.
This 8,676 m² asset was recently transformed to make it one of the most virtuous office buildings in Paris. Rated “Excellent” with regard to BREEAM certification and HQE certification, the building has also obtained the Wiredscore Platinum and Effinergie labels. Its CO emissions2 are in line with the Paris Climate Agreement. The asset offers great natural light, spacious balconies on several floors, as well as an accessible terrace and a rooftop which provide breathtaking views of Paris and Parc Monceau. The first basement of the building houses a series of high-end services, including an auditorium, a restaurant and a fitness room. The building is fully leased to high quality tenants including a law firm, investment banks and private equity funds. For this transaction, M&G Real Estate was advised by the teams of Ashurst and the notarial office Flusin.
Following this acquisition, Antonin Prade, Director of Investments for France, declares: “In an uncertain market context marked by inflationary pressures, it is necessary to be even more disciplined, with the imperative of choosing buildings whose technical and environmental quality as well as their location allow them to transmit to their customers – the tenants – the current rise in prices and costs.”
Dmitri Doublet, manager within the fund management team, adds: “This premium building complements our existing portfolio of Parisian offices and perfectly illustrates our desire to concentrate on larger investment volumes, in line with the size of the fund, in dynamic European cities where rental demand ESG criteria are a major component of our investment decisions and this asset, among the best performers in its category in Paris, demonstrates our commitment to respecting the highest environmental standards, an essential condition now essential for investors and the tenants”.
Finally, Omar Fjer, managing director within the team real-estate of Ardian, concludes: “The Rio building is a reference in a very popular district of Paris, which has seen a growing demand for quality offices in recent months. The high-quality restructuring and the ambitious environmental certifications obtained have naturally attracted prestigious tenants. We are delighted to have this building as part of M&G’s portfolio for its next stage of development.”
The M&G European Property Fund was launched in 2006 with a mandate to invest in a diversified portfolio of high quality assets in well-established continental European markets. Thanks to the support of teams present in eight markets, including France, the fund now manages 5.2 billion euros. It recently celebrated its 15th anniversary by having been awarded its best rating ever by the GRESB (world reference body for evaluating the ESG performance of real assets) and by recording record inflows of 524 million euros between January and March this year with customers in Europe and Asia. M&G Real Estate is part of the private and alternative asset management division (more than 85 billion euros under management) of M&G plc.