ING Real Estate Finance has underwritten a €150 million financing of Oxford Properties’ latest acquisition in the Paris market.
German bank Berlin Hyp AG acted as joint mandated lead arranger in the financing of the 24,100 square metre PariSquare campus in the 11th arrondissement of the French capital.
Oxford bought PariSquare from Tristan Capital Partners and STAM Europe last October. The purchase price was undisclosed although the asset was reported at the time to have been sold for around €250 million, suggesting that ING has financed the asset at around 60 percent loan-to-value.
PariSquare was a former multi-storey car park that was comprehensively redeveloped by Credit Agricole Immobilier. The scheme was completed in Q1 2015. A joint venture between Tristan’s opportunistic fund (EPISO) and the STAM REI III added value fund acquired PariSquare in 2011 under a forward purchase agreement.
The campus comprises five inter-connected office buildings located close to the Place de la Bastille and Place des Vosges. The 21,100 square metres of office space is fully let to Publicis Group on a ten-year lease. The campus also contains 1,650 square metres of retail space, a 210-seat auditorium and a 1,500 square metre restaurant.
The purchase of the campus was the third investment made in Paris by Oxford, which is the real estate arm of the Ontario Municipal Employees Retirement System (OMERS). Hines will act as asset manager.