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Europa acquires French office asset

The London-based firm’s deal is likely to be one of the last from its fourth pan-European value-add vehicle.

Europa Capital, the private equity real estate firm, has bought an office building in the outskirts of Paris through its vehicle Europa Fund IV.

5 Quai Marcel Dassault is located on the bank of the River Seine, in Suresnes, and is three kilometers south of La Defense, Europe’s largest office district.

The property, built in 2003, is comprised of 133,472 square feet of office space as well as 512 car parking spaces. One of the key selling points was the building’s panoramic views which stretch to Paris. The building, which is 85 percent leased and generates an annual rental income of €3.7 million, has tenants including Airbus Group, Dassault Aviation and Waycom Group.

The price of the deal and the seller has not yet been disclosed by Europa, though the firm did disclose that the transaction was part of a joint venture with French asset management company Balzac REIM.

Nic Fox, partner and head of the middle Europe region at Europa Capital, said: “This represents an opportunity to acquire a well-located, significantly-rented, modern office property with an attractive combination of secure income and value-add potential. We will look to strengthen the current income profile, lease-up the vacant space and enhance the building’s amenities by investing in a light refurbishment of the common parts.”

Europa Fund IV, had a final close on €604 million in July 2012 although its original target was €750 million. The firm began fundraising for the vehicle in early 2011, and it has now largely completed its investment programme concluding acquisitions in the UK, Denmark, the Netherlands, Spain, Czech Republic and Hungary.

Some of the key deals include the March 2015 purchase of a €100 million shopping center in Corby, northern England; the acquisition of a Prague office building in July that year for €43 million and the sale of a €130 million office asset in Paris to Qatar-based investment group Alduwaliya Asset Management in September 2015.

Last September, Europa launched its fifth pan-European value-add fund with a target of €750 million in capital commitments. In April it was reported that the firm had reached a first close for the fund on €360 million.

During the same month last year, Europa hired former AEW Europe fundraiser Schalk Visser to expand the firm’s institutional relationships.

Since 1995, Europa Capital has collectively raised nine real estate funds and committed to over 90 transactions totaling some €9 billion across 19 European countries.

Europa was advised on the acquisition by Balzac REIM, who will be retained as asset manager, together with Dentons and notary Le Breton & Associes, while Catella and notary Wargny Katz & Associes represented the seller.