Oxford Properties Group has acquired 32 Rue Blanche, a prime Grade A 237,500 square foot office building located in Central Paris from entities controlled by The Carlyle Group for a purchase price of approximately €263 million. The building is fully leased to tenants including Criteo, Mutuelle Interiale and BlaBlaCar, and represents Oxford’s first office investment in Continental Europe.
The asset is located on rue Blanche in the 9th Arrondissement, which is part of Paris’ historic financial district and the city’s new “digital CBD”. Designed by Franck Hammoutene, the property’s most striking feature is its central “Mantille,” an elaborate ornament feature that hangs down the core atrium of the building and also assists in daylight harvesting by reflecting additional light into the floor plates.
The acquisition represents an attractive entry point for Oxford into the Paris office market, which demonstrates compelling long-term fundamentals and is in line with Oxford’s stated overall European strategy. Paris is a key global business and cultural centre, and one of the most transparent and liquid real estate markets worldwide. The market’s relative stability, robust level of business activity and occupational demand, and the long-term structural constraints on new supply all make the market attractive for investment. In addition, Oxford sees the prospect for significant growth to come through infrastructure improvements and a broader economic recovery in the coming years.
Oxford executive Michel Vauclair commented, “After delivering on our stated intention to establish a high quality commercial real estate portfolio in the UK, which currently stands at over €3 billion, 32 Rue Blanche represents an excellent opportunity to establish a portfolio in Continental Europe which demonstrates the same compelling attributes. We have a clear ambition to grow our assets under management in Paris to over €1 billion over the next three to five years, and will invest in assets where we can drive value through active asset management initiatives, where we are able to leverage our scale and experience, and where we believe that current values do not reflect future market improvements.”