Investment strategy
Office building investment and asset management is a fundamental part of Primonial REIM France’s DNA.
Investment market developments - record investment volumes and measured/rental values - in conjunction with an environment where the potential for the compression of long term products seems limited, must lead us to generate future value, whilst remaining defensive, by targeting:
- Off-plan projects and assets to be restructured in mature and deep markets (“build-to-core”);
- Property with a significant reversion potential: either driven by a regional dynamic (public transport in ‘Grand Paris’, the development of a commercial zone, changes to a Local Urbanisation Plan, etc.), or related to a terminated leasing reversion (low rent assets or repositioning in their rental market);
- “Core” properties, where the two primary investment decision criteria continue to be the location and rental amounts in practice.
Investment market developments - record investment volumes and measured/rental values - in conjunction with an environment where the potential for the compression of long term products seems limited, must lead us to generate future value, whilst remaining defensive, by targeting:
- Off-plan projects and assets to be restructured in mature and deep markets (“build-to-core”);
- Property with a significant reversion potential: either driven by a regional dynamic (public transport in ‘Grand Paris’, the development of a commercial zone, changes to a Local Urbanisation Plan, etc.), or related to a terminated leasing reversion (low rent assets or repositioning in their rental market);
- “Core” properties, where the two primary investment decision criteria continue to be the location and rental amounts in practice.
case
study
Adria, Courbevoie
The Adria Tower is located in the ‘Défense’ near to the ‘Grande Arche’ and was constructed in 2002. The complex includes 39 floors of offices, four of which are under the esplanade, as well as a dining area and 615 parking spaces. This asset is leased as a single unit to Technip, it was acquired by the OPCI PREIM Défense 2 (a dedicated and regulated trust created and managed by Primonial REIM) which involves a round-table of institutional investors.
In addition to this the OPCI acquired a neighbouring asset to the tower in 2017, Services Faubourg, which is made up of five business premises, five retail outlets and three archiving units making up a total area of 3,260 m2.
This property complex has excellent access since it is connected to a huge public transport network (T2 - tram, M1 - Metro, RER A - urban railway, bus lines and SNCF).
Technip’s leasehold will end in March 2021, they have declared their desire to release the asset in 2020. Once this departure was confirmed, the Primonial REIM teams proposed that the current group of investors initiate surveys for the complete renovation of the complex, including changing the facade and creating additional surfaces to bring the total up to almost 64,000 m2.
After an initial regular distribution phase, the investors will see their shares re-evaluated as a result of the implementation of this restructuring project, allowing the tower to be converted into a “Prime” product and thus improving long-term liquidity.
Year of acquisition:
2013 / 2017
Acquisition price (HD) :
450 M€ (Adria) + 16 M€ (Services Faubourg)
Total surface area:
59 700 m2
Tenant:
Technip
Trust name:
OPCI PREIM Défense 2
Investors:
INSTITUTIONAL CLUB DEAL
The team
Our teams include a high level of office specialised investment and asset management skills.
We can also rely on the support of our dedicated Property Management subsidiary: Sefal Property
9 years of experience
Office Investments team: 3 people
15 years of experience
Office asset management team: 12 people
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