24 January 2007 - Macquarie Global Property Advisors (MGPA) and Générale Continentale Investissements (GCI) have entered into a joint venture to acquire on completion a 32,000 sqm , Grade A office development in Saint-Denis, Paris, for €113 million. 

The property, known as Balthazar, is being acquired from Sogelym Steiner, which is also developing the building.

Balthazar is in an excellent location within the Saint-Denis business district.  The building has been designed by the renowned architects Richard Meier and Mas & Roux, and will consist of two independent seven-floor wings linked by a full height glass atrium, and 430 underground parking spaces over two floors.

It is being built to the highest technical specifications such as raised technical floors, suspended ceilings, a floor to ceiling height of 2.7 metres, full air conditioning, and the building will comply with the French environmental quality standard HQE.

MGPA’s Director of Investment for France, Olivier Vellay said, “This is an excellent investment for MGPA as there is strong demand for international Grade A office space in the Saint-Denis area, as this area consolidates its position as an established business district. 

“This property is extremely well designed with a very flexible layout which will mean it is well placed to meet the demands of the increasing number of businesses looking to move to this area.  It is ideally located in the heart of this business district with excellent transport links, being right next door to the RER station.”

MGPA Managing Director Alex Jeffrey said, “We are very positive about the office sector in France, and in Ile de France in particular, as we continue to see declining vacancy rates and strong rental growth.

“This is our second investment in the office sector in Paris and our second investment with GCI.  GCI have excellent specialist experience in the Paris office market and we are delighted to be partnering with them again in this investment.”

Sharon Raingold, Managing Director of GCI said, ”We are pleased to be able to build on our existing relationship with MGPA by acquiring this property. This is GCI’s second investment in Saint Denis as we have a strong belief in the Saint Denis office market as it has evolved over the past few years into a confirmed business district with large national and international corporations that have chosen it”

MGPA is acquiring this property asset on behalf of MGP Fund II which has already made two other investments in France including Capitale Sud, an office building in Montrouge which it acquired with GCI, and the logistics development joint venture  Logiffine which is developing facilities in various locations in France including Lille and Valence. 

This acquisition is financed by HSH Nordbank. MGPA and GCI were advised by Gide Loyrette Nouel and Wargny-Katz. The sellers were advised by Herbert Smith and Oudot & Associés. The bank was advised by Versini-Campinchi and Roussel.