SFL pays €484m for Paris office building

SFL pays €484m for Paris office building
Amundi headquarters located at 91-93 Boulevard Pasteur in Paris’ 15th arrondissement.

France-based commercial real estate company Société Foncière Lyonnaise (SFL) has acquired Amundi’s headquarters located at 91-93 Boulevard Pasteur in Paris’ 15th arrondissement.

SFL acquired the office complex from Primonial REIM France for €484 million including transfer costs, based on a capitalisation rate of 3.9%

Amundi will remain the tenant of the property complex under a new lease that took effect on 1 February 2022 for a fixed term of 12 years.

SFL said the lease specifies that the building will undergo a programme of works and technical enhancements to meet the objectives of France’s commercial real estate energy savings decree.

Built in 1965 on land sold by French rail operator SNCF, the complex, which has been occupied by Amundi since 2012, boasts 39,600 sq.m. of office space spread over three separate but interconnected buildings across 17 floors, offering a horizontal layout with 2,100 sq.m. floor plates and breath-taking views of Paris.

The transaction is fully in line with SFL’s investment strategy, which consists of making long-term investments in assets with significant reversionary potential that offer scope to create short-, medium- and long-term value in prime areas of central Paris.

“This acquisition is a rare opportunity to secure a major position at one of France’s main railway stations, a very powerful hub for local, regional and national transport, at a time when people in the Paris region are seeking a better quality of life by moving away from the city centre to enjoy more space. For this reason, users are highly sensitive to journey times and office accessibility,” said Dimitri Boulte, Managing Director, Chief Operating Officer at SFL.

“The property’s natural light, the quality of its floor plates and services and its environmental certifications were key considerations when making our investment decision. What’s more, the area was been undergoing major renewal over the last few years, with large-scale projects such as the Montparnasse train station upgrade, the forthcoming completion of the Ateliers Gaîté development, and renovations to the MGEN headquarters, the Tour Montparnasse and the CNP headquarters,” said Aude Grant, Deputy Managing Director, Asset Management and Investment at SFL.