PARIS, Oct. 22, 2018 – PGIM Real Estate has acquired The Square, an iconic 7,000-square-meter office building located on 7-7 bis rue de Téhéran, Paris, on behalf of its pan-European discretionary value-add fund. The seller was a German closed-ended fund managed by GLL Real Estate Partners, a member of Macquarie Group. PGIM Real Estate is the real estate investment business of PGIM, the $1 trillion global investment management businesses of U.S.-headquartered Prudential Financial, Inc. (NYSE: PRU).
“The property’s prestigious location, impressive facade and abundance of natural light will appeal to the exacting demands of institutional tenants. ”
Jocelyn de Verdelon,
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The property is situated in the heart of the central business district, between boulevard Haussmann and Parc Monceau, in an area sought after by financial, law and consulting firms, and luxury companies. The property has been fully let to Parfums Christian Dior since 2007.
Built in 1928 and fully refurbished in 2007, the property is distinguished by its iconic Art Deco façade, dual, naturally-lit inner courtyards and glass-roofed entrance hall. It also features efficient floorplates, a communal area in the basement illuminated by a light well, and terraces and balconies accessible on several floors.
Jocelyn de Verdelon, PGIM Real Estate’s head of France, Spain and Portugal, said, “This acquisition, in the form of a complex corporate transaction, illustrates our capacity to win tenders and offer vendors flexibility and security in deal execution. In addition, the property’s prestigious location, impressive façade and abundance of natural light will appeal to the exacting demands of institutional tenants.
Brigitte Schmale, fund manager at GLL Real Estate Partners: “This asset delivered excellent returns over the 12-year holding period for the shareholders of the fund and outperformed the business plan despite buying near the peak of the last cycle. It is a great example of what asset selection, hands-on local asset management and a focused strategy can achieve.”
PGIM Real Estate was advised by Cheuvreux Notaires, De Pardieu Brocas Maffei, Accuracy, and Builders & Partners. Financing was provided by Crédit Agricole CIB.
GLL Real Estate Partners was advised by JLL & Catella, Wargny Katz, Gide, Reed Smith and Exponens.
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 17 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $69.2 billion ($49.5 billion net) as of June 30, 2018. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt and securities investment strategies that span the risk/return spectrum. For more information, visit pgimrealestate.com.
About PGIM, Inc.
With 15 consecutive years of positive third-party institutional net flows, PGIM, Inc., the global asset management businesses of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of June 30, 2018. PGIM, Inc.’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 15 countries across four continents.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about PGIM, Inc., please visit pgim.com.
Prudential Financial, Inc., of the United States is not affiliated with Prudential plc, a company headquartered in the United Kingdom.
About GLL Real Estate Partners
GLL, since June 2018 part of the Macquarie Infrastructure and Real Assets (MIRA) platform, is based in Munich and manages real estate assets with more than 130 employees in 16 locations across Europe, the USA, Latin America and Australia. GLL is one of the established providers of institutional real estate funds in Germany. Since the company was founded in 2000, it has concentrated exclusively on the institutional sector. Throughout its history, it invested over €14 billion in Europe, the USA, Latin America and Australia. At present, GLL manages real estate assets in the office, retail and logistics sectors with a volume of €7 billion in 17 countries.
© 2018 PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM, Inc., a registered investment advisor. Prudential, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. PFI of the United States is not affiliated with Prudential plc, a company headquartered in the United Kingdom. Ref: 18BDUFF – B5KNPS