Patron Capital has sold its recently bought Malakoff Paris office building to Société de la Tour Eiffel in return for an 8.4% stake in the French company.
While some international investors have cooled on the French market, Patron allocated €500m of its fourth private equity fund to French property.
Patron bought the 20,000m2 building at Malakoff in the south of Paris in July with a loan from ACOFI Loan Management’s debt fund. It is let for the next eight years.
Elsewhere in Paris, AXA Real Estate has sourced development finance from three French banks for the first, speculative 46,000m2 phase of a campus office scheme in Balard. The equity is from AXA’s third Development Venture fund, which seeks value-added returns.
Laurent Vouin, AXA’s head of opportunistic funds, said the banks backed AXA’s London and Paris development track record through two previous funds and cycles. “For this reason, banks have been willing to finance us,” he added.
The same fund speculatively developed 210,000 sq ft ‘Sixty London’ in Holborn – which, as announced in May, was let to Amazon – with equity only.
“We had some debt financing proposals but they weren’t right for creating the performance we expected,” said Vouin.