A consortium of Korean investors, led by Hyundai M&F Insurance, is set to acquire a Paris office tower for €474 million, PERE’s sister publication Real Estate Capital has learned.
The Seoul-based firm, which is South Korea’s second largest private insurer, is understood to be in advanced discussions over buying So Ouest Plaza, the headquarters of French cosmetic giant L’Oreal, from Unibail-Rodamco, the French real estate investment trust.
The tower, which comprised 411,000 square feet of office and leisure space, is located in the 17th arrondissement of the French capital. L’Oreal occupies 310,000 square feet of the 23-storey tower with a lease which expires in 2024. As well as offices it contains 41,000 square feet of retail, plus a cinema and a restaurant.
According to Real Estate Capital, German lender DekaBank is thought to be underwriting a €290 million financing for the purchase of the tower.
The core Paris office market has proved popular with Korean investors in recent months. In January, Korea Investment & Securities purchased the headquarters of pharmaceutical firm Novartis from BNP Paribas Real Estate Property Development for around €400 million. Last October, La Française Real Estate Investment Management, on behalf of Korea Post, bought the offices of French bank Natixis for €176 million.
All parties were contacted but declined to comment.