AXA-IM and Norges Bank complete Greenwalk sale to M&G for €126.5m

By James Wallace - Monday, April 09, 2018 14:43

AXA-IM Real Assets and Norges Bank REM has completed the sale of the Greenwalk office building on 31-33 rue de Verdun in 92 Suresnes Paris to M&G Real Estate for €126.5m (£112m).

Greenwalk was acquired on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis and represents the fund’s largest single French transaction to date. AXA France and Norges Bank REM acquired Greenwalk as part of a seven-strong portfolio acquisition in July 2011 by then-named for around €1.4bn. The joint venture partners each held a 50% stake in the portfolio.

Located in the city’s western business district, the 23,820 sq m building is let to Phillips, the global technology company and various multinational insurance companies.

M&G’s Jackson said: “This major acquisition further demonstrates our continued commitment to expanding our core continental European portfolio and follows the strategy of acquiring well-leased, high quality assets in office sub-markets where we see strong relative rental growth potential.”

Olivier Vellay, head of acquisitions, Continental Europe, added: “France is one of the largest and healthiest economies in continental Europe and the Greater Paris region will soon be bolstered by the Grand Paris infrastructure project and, in a few years’ time, the 2024 Olympic Games. Greenwalk is located in one of the Paris submarkets, which is set to benefit from location enhancing structural changes. We expect the demand for offices located in the bordering areas of the central business district and La Defense to grow as cost-conscious occupiers look to capitalise on lower rents.”

M&G Real Estate’s existing portfolio in France is comprised of over 200 sq m of assets across the office, logistics and retail sectors, collectively valued in excess of €432 million.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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