MGPA lets French project to France Telecom

MGPA, the European and Asian private equity real estate firm, is creating value in Paris by pre-letting a development scheme to one of the country’s leading corporations.

MGPA and French joint venture partner, Générale Continentale Investissements, has pre-let the entire Balthazar Building in Paris to France Telecom.

Designed by renowned US architect Richard Meier, the 32,000 square metre project is located in the Saint-Denis business district of the city.

Olivier Vellay, MGPA’s head of acquisitions in France, said in a statement, the Saint Denis office market had evolved over the past few years into an established business district, with a sustained strong demand for grade A office space from large and international corporations from a wide range of industries in the area.

The development was purchased in December 2006 by MGPA Europe Fund II and GCI from the developer, Sogelym Steiner, for €113 million ($144 million). It was the fund’s second investment in the Paris office sector and its second with GCI.

The acquisition was financed by HSH Nordbank.