Paris’s improving infrastructure played a key role in convincing Allianz Real Estate to pay about €500 million in an off-market deal for two office buildings in the Citylights complex in Boulogne-Billancourt, in the western Paris region.
It is the largest office transaction that Allianz Real Estate has closed in Europe. The vendor was insurer BNP Paribas Cardif.
The complex comprises three towers. Allianz has acquired the 23-storey City 1 and the nine-storey City 3, providing a total gross lettable area of 48,500 sq m and representing approximately 60% of the entire development. Gecina acquired City 2 from BNP Paribas Real Estate in 2015.
Formerly known as the Pont de Sèvres Towers, the complex was built in 1978 before being redeveloped and refurbished in 2014 and 2015.
Improving infrastructure benefits Boulogne-Billancourt
Boulogne-Billancourt is expected to benefit from improvements to the Parisian infrastructure being provided by the Grand Paris project – in particular Grand Paris Express Line N 15 will run past Citylights.
“Paris and specifically the Grand Paris continues to be very attractive within the broader Allianz Real Estate strategy, which is why we have increased the portfolio in France with this significant acquisition,” said Sébastien Chemouny, head of France, Allianz Real Estate.
Allianz said in a statement that the deal reaffirms Allianz’s conviction to invest further in prime assets in the Paris market. The company has €8.7 billion assets under management in France including Citylights.