Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, confirmed today that it has entered into a purchase agreement with PSA Peugeot Citroën to acquire its historical head office at 75 Avenue de la Grande Armée in Paris’ 16th arrondissement. Located on one of the main avenues leading to the Arc de Triomphe, onto Avenue des Champs Élysées, the office building represents a CAD $350 million (€245.5 million) investment.
“We are pursuing our strategic plan to acquire high-quality buildings in the best markets. Investment opportunities such as this one are quite rare these days,” said Bill Tresham, President, Global Investments, at Ivanhoé Cambridge.
The office building, 362,000 square feet (33,660 m2) in size, is located in the heart of Paris’ central business district. Its value-creation potential is considerable due to the future arrival of new metro lines to service Porte Maillot.
“This acquisition is important because it gives Ivanhoé Cambridge a foothold in a very sought-after district,” said Méka Brunel, Executive Vice-President at Ivanhoé Cambridge Europe. “This is also an opportunity to assume the ownership of a building that is fully leased for nine years by French industry leader PSA Peugeot Citroën.”
Ivanhoé Cambridge, through its subsidiaries, owns a portfolio of 14 office buildings and seven shopping centres in Europe. It also owns the T1 tower located in the La Défense district.