PARIS, 18 February 2014 – CBRE Global Investors, the real estate investment company, has completed the acquisition of the Marengo building, Paris. This mixed use office and retail building is located next to the Louvre Museum, in one of the most attractive areas in Paris. The property has been acquired on behalf of the Pan European Core Fund (PEC) and 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.
Richard Everett, Fund Manager PEC, CBRE Global Investors: “We always purchase office assets on a tactical basis for our Core Funds based upon the level of rents in the cycle. 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, CBRE Global Investors: “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 mandate with Jones Lang Lasalle), Jones Day and De Pardieu Brocas Maffei acted for the vendor. Linklaters and EY acted for CBRE Global Investors.
– Ends –
About CBRE Global Investors:
CBRE Global Investors is a global real estate investment management firm with $89.1 billion in assets under management* as of December 31, 2013. The firm sponsors investment programs across the risk/return spectrum for investors worldwide. CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide.
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.