HSBC Assurances has acquired office property Le Viala in Paris from LaSalle Investment Management. The investment volume and the yield were not disclosed but was likely in the region of EUR 100 mln.

LaSalle tested the water with the open-market disposal of the renovated property for its French Fund II. 'We wanted to stir up competition,' Beverley Shadbolt, associate director at LaSalle Investment Management, told PropertyEU. 'There were quite a few bidders - mainly international investment managers which a presence in Paris.'

HSBC Assurances, she said, showed its commitment from the start with its pricing and procedures.

The French insurance arm of global banking group HSBC, is increasing its property holdings. Jean-Pierre Wiedmer, CEO and chairman, HSBC Assurances, said, 'We are delighted with this acquisition which is part of HSBC Assurances’ strategy to develop its corporate real estate assets and to diversify its investments.'

Located in the 15th arrondissement of the French capital, La Viala is the former headquarters of the French department for family affairs. The 12,400 m2 office building with a listed metal structure has been entirely refurbished by the teams at BNP Paribas Promotion and OGIC.

LaSalle acquired Le Viala in 2007 for its French fund II in a forward-purchasing agreement with the developer, BNP Paribas. Refurbishment work was completed in 2009 and the building was leased to naval defence company DCNS for a 12-year term. LaSalle's strategy called for a sale once the property was renovated and leased up as a core property.

The investment team at BNP Paribas Real Estate Transaction France advised on this transaction through a co-exclusive instruction with Jones Lang LaSalle. The notary firm Lavigne Roux advised the vendor and Oudot & Associés the purchaser.

Shadbolt said LaSalle is currently marketing two other office properties in Paris, though both are smaller than Le Viala.