pbb, BNP and CA-CIB lend in busy Paris market

Deutsche Pfandbriefbank (pbb), BNP Paribas and Crédit Agricole CIB are among lenders which have recently provided finance during a busy period in the Paris office investment market.

pbb has written a €92 million loan to Catalyst European Property Fund II for the acquisition and refurbishment of the Atria building in the Rueil-Malmaison area of Paris and the Axe Etoile building in Nanterre, both close to the La Défense business district. The loan was agreed in December 2015.

Catalyst Capital bought the buildings from Amundi Real Estate. The firm announced the purchase last week, as well as the acquisition of the Perspective Seine office building in the Pleyel district of Saint-Denis from AEW Europe, for a total of €155 million.

Atria comprises three buildings, totalling 18,310 square metres. The buildings were refurbished in 2013 and are 65% leased overall to 16 tenants. Axe Etoile is a 10,630 square metre building which is 100 percent leased to nine tenants.

In a separate deal, BNP Paribas and Crédit Agricole CIB have provided a €450 million senior loan to AXA Investment Managers – Real Assets to finance its purchase of the Tour First office tower in Paris, CoStar News reported.

The seven-year loan reflects a 55 percent loan-to-value ratio and was priced at a tight margin of 155 basis points over three-month Euribor, according to CoStar.

AXA announced the purchase of Tour First, France’s tallest office tower, from a subsidiary of Beacon Capital Partners last week. The investment was made via a share deal on behalf of a club of investors managed by AXA, together with Assurances du Crédit Mutuel.

Tour First had previously been financed in October 2014. Aareal and pbb jointly underwrote a €515 million senior loan to Beacon Capital Partners, which was partially syndicated to M&G Investments and AEW Europe’s Senior European Loan Fund I.

The Tour First and Atria/Axe Etoile deals come during a busy period in the Paris office market. Earlier this month, Aareal wrote an €80 million loan to Primonial REIM to finance the Noda office building in the southwestern suburbs of the French capital. The 22,000 square metre Noda is let to tenants including Coca-Cola.