Europe and Asia private equity real estate firm MGPA has bought the Les Trois Quartiers office and retail building from listed property company Hammerson for €210 million.
MGPA said in a statement it had completed the purchase on behalf of its MGPA Europe Fund III which closed on $1.3 billion last June. The acquisition joins prior investments made on behalf of the fund in countries including Italy, Greece and Poland.
Before completing the transaction, the MGPA Europe Fund III was believed to have had 80 percent dry powder.
Les Trois Quartiers, a 320,000-square-foot building on Boulevard de la Madeleine in the central business district of Paris, was close to being sold last October to St Martins Property Group, the property investment arm of the Kuwait Investment Authority. That deal fell through as property valuations came under pressure from the global economic turmoil. The property, which is multi-let, was valued at €275 million as of 31 December.
MGPA’s chief executive for Alex Jeffrey said: “France is a key market for MGPA Europe Fund III. We are positive about the long term prospects for the Paris market especially relative to other core real estate markets in Europe. Paris offers a degree of resilience in the downturn due to the broad base of its economy.”