PARIS—CBRE Global Investors has completed the acquisition of the Marengo building in Paris.
The mixed use office/retail building is located next to the Louvre Museum, in one of the most attractive areas in Paris. The vendor was a fund managed by Morgan Stanley Real Estate Investing.
The property has a total surface area of 9,000 sq m fully occupied by 15 tenants including the Musée du Louvre, Cityrama, and Club Med Gym.
“We always purchase office assets on a tactical basis for our Core Funds based upon the level of rents in the cycle,” said Richard Everett, CBRE fund manager. “The critical element also is the value of the assets based on capital value per square meter rather than income yields. CBD Paris office rents have fallen in recent years but our forecasts are for a recovery over the next five. The decision behind this purchase was based on the building’s prime location in the central business district of Paris together with embedded value offering rental upside on both the office and retail space.”
John Ozinga, head of France added: “The quality and location of this asset in one of the most sought after areas in Paris offers numerous asset enhancement opportunities. We also believe the location will benefit from the footfall generated by the Louvre Museum and the numerous luxury retail asset development projects in the immediate vicinity.”
Savills (within a co-exclusive contract with Jones Lang LaSalle), Jones Day and De Pardieu Brocas Maffei acted for the vendor. Linklaters and EY represented CBRE Global Investors.