22 March 2019
Union Investment purchases an office property near the Louvre Museum in Paris
• The building was sold to Union Investment by Oreima, the leading French independent real estate investor after its recent renovation
• The main tenant is Spaces, a leading provider of innovative and scalable office spaces
• The acquisition is being made on behalf of Unilmmo: Deutschland and the sale by the FOSCA II fund
The prestigious building acquired by Union Investment from Oreima is located at 40 Rue du Louvre in the 1st arrondissement of Paris. The acquisition is on behalf of open-ended real estate fund Unilmmo: Deutschland, thereby further expanding its Paris portfolio.
Built in 1855, the exceptional property features a Haussmann façade and was remodelled and updated by Oreima in 2017. It now has a high level of environmental certifications such as HQE Tertiary Renovation Buildings, BREEAM, BBC Renovation and NF Tertiary Buildings. The building comprises 9,700 sq m of rental space, of which 7,500 sq m is office space let to Spaces, a company belonging to the IWG Group (formerly Regus). In addition, there is 2,200 sq m of space devoted to retail on the ground floor and basement level.
“40 Rue du Louvre is a historical building with an outstanding address. Following its restructuring, it now meets the standards expected of a modern office property. We also believe that the location will continue to perform well over the next few years as Paris’s central business district extends into neighbouring areas. This development is creating positive conditions for further rent growth, with properties such as 40 Rue du Louvre particularly well placed to benefit.”
Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate GmbH
“Our latest acquisition is located in a district which is experiencing radical change due to the urban development projects currently under way in Paris. These include the refurbishment of the Louvre post office, the upcoming opening of the Collection Pinault in the former Bourse de Commerce, which faces the 40 Rue du Louvre building, and the modernisation of the Les Halles district. In this regenerating quarter, our tenant Spaces offers modern space with various co-working options.”
Tania Bontemps, president of Union Investment Real Estate France
Brigitte Sagnes Dupont, President and Founder of Oreima, explained: “The sale of 40 Rue du Louvre is consistent with our strategy of making highly promising investments and boosting the value of a property over the medium to long term. Our team carried out one of the most ambitious upgrading projects in Oreima’s history. This investment, which was made more than eight years ago, will remain a powerful symbol of the three pillars of our expertise: quality, environmental responsibility and innovation.”
Following the acquisition of 40 Rue du Louvre, Union Investment holds 20 commercial properties in France worth a total of some EUR 3 billion in its actively managed real estate funds. The majority of the properties are located in Paris. Union Investment was advised on the acquisition by C&C Notaires, Archers and Fidal. Oreima received advice from Wargny Lelong Retel Mercier et associés, Gide Loyrette Nouel, JLL and BNP Paribas Real Estate. BNP Paribas Real Estate completed the transaction.
For Union Investment Real Estate GmbH