The 2,400 sq m asset located in Rue la Boétie consists of eight floors above ground and a further five levels below ground, including 65 parking spaces. The asset also benefits from a terrace on the 7^th floor and a garden at the back. It is currently partially let to three office tenants and one restaurant occupier.

Located in a prime site in Paris’ central business district, the asset is a short walking distance from the Avenue des Champs-Élysées and Rue du Faubourg Saint-Honoré. The neighbourhood is host to a wide range of luxury department stores, law firms, consulting companies, financial institutions and hotels. The scheme further benefits from being 500 metres from metro lines 1, 9 and 13, providing easy access on east-west and north-south public transport links.

Barings will comprehensively refurbish the asset into a prime office building with strong ESG credentials, with new facades, and attractive outside areas including the creation of a roof terrace and expansion of the inner courtyard.  The floorplates will be delivered to a Grade A standard, and new amenity space will be created in the basement and car park to include cycle storage and shower facilities. Barings will target HQE and BREEAM Excellent certification for the asset.

Cushman&Wakefield was mandated by the Vendor. Barings was advised by Oudot (notary), LPA-CGR (lease, tax, structuring), Reed Smith (VAT tax ruling), Arcadis (technical and environmental), and BNP Paribas Real Estate and CBRE as commercial advisers. The asset is held by an OPCI managed by Edmond de Rothschild.

This is the second acquisition in the past three months for Barings in Paris, following the acquisition of a prime grocery retail asset on the 7^th Arrondissement, also on behalf of a strategy to acquire core real estate.

Guillaume Bieganski, Managing Director and Country Head, France, at Barings Real Estate, said: “The acquisition of a mixed-use asset in a very attractive location represented a strong opportunity to create and deliver value on behalf of our investors. We continue to take advantage of the current market environment, with our on-the-ground expertise supported by our global insights enabling us to identify opportunities and long-term trends. While we are attracted to assets in the centre of Paris, as evidenced in our two most recent transactions, we are actively acquisitive in logistics, living and in prime offices in and around many of France’s most vibrant cities.”

Gunther Deutsch, Managing Director and Head of European Real Estate Transactions at Barings, said: “Our strong view is that offices in central business districts of cities such as Paris, particularly where they benefit from exceptional transport links and either excellent sustainability credentials or strong scope for improvement, remain attractive investments. With significant capital to deploy, we are exploring similar such refurbishment opportunities and brand new developments, in addition to logistics and living assets, in our preferred markets, namely France, Germany, the Netherlands, the Nordics, the UK, Iberia and Italy.

Contacts
Polly Warrack/Ben Monteith (SEC Newgate)
baringsRE@secnewgate.co.uk 

Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers.  Follow us on LinkedIn at linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $409+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. Learn more at Barings.com.

*As of June 30, 2024