Deutsche Pfandbriefbank (pbb) has provided a €68 million medium-term loan to Orchid, a joint venture between InfraRed Capital Partners and Générale Continentale Investissements to finance a recent office acquisition in Paris.
The loan finances the purchase of the 42,000 square metre T9 office tower, located in the eastern Paris suburb of Montreuil. The building was bought by the joint venture in October from a fund managed by The Carlyle Group for an undisclosed sum.
T9 was refurbished in 2009 and is around 50 percent let to three tenants; Yellow Pages, AFPA and France Active. It is located close to a metro station and the surrounding area has been subject to recent development including a new shopping centre, cinema and theatre as well as residential buildings.
At the time of the purchase in October, InfraRed investment director Cédric Vallin said that the strategy for the building is to re-position it in the market and improve the services and common areas. The new owners are also aiming to set more competitive rents, Vallin added.