Barings picks up historic Paris buildings for build-to-core strategy

Global investment management firm Barings has acquired an office refurbishment opportunity in a prime location at 163 rue Saint-Maur in Paris’ 11th arrondissement, France, from Groupe Financière JL, represented by its family office Family Partners. Financial details were not disclosed.

Barings, which has made the acquisition on behalf of a pan-European core strategy, intends to fully reposition and upgrade the property once it receives vacant possession.
Located on the corner of 163, rue Saint-Maur and Rue Darboy and originally constructed as a school in 1875, the building has a distinctive historic facade. The building has been used as an office since 1995 and comprises  2,600 m2 of lettable space across five floors.  Around 1,000 m2 of the property is configured as workshops and showrooms for the current sole tenant, a luxury fashion brand which has been based there since 2004 and whose lease expires at the end of 2021.
Barings will seek to improve the property’s ESG credentials, targeting a minimum BREEAM / HQE excellent.
Barings has appointed Nexity to undertake the refurbishment works which are currently expected to complete late 2023 early 2024.  This will be Barings’ third project with Nexity.
‘This transaction gave us an exciting opportunity to undertake a full refurbishment of an unusual and historic property and reposition it into a Grade A office,’ said Séverine Maumy-Laffineur, managing director and country head real estate France at Barings. ‘With a focus on high quality office and amenity space, occupier wellbeing and excellent environmental credentials, we have designed this building to meet the specific demands of the modern occupier in a post Covid world.’
Gunther Deutsch, head of Transactions Europe at Barings, added:  ‘This transaction underlines our belief that there is continued robust demand for newly repositioned Grade A offices.  Refurbishment and development opportunities such as this one remain a key area of investment for us both in France and across our other target geographies across Europe, where we can utilise our expert on the ground local teams to source and deliver projects and drive returns for our investors. We are also targeting further transactions in purpose built student accommodation and Build to Rent as we aim to reach our European investment target of €2 bn in 2021.’
Barings was advised by Oudot & Associés (Notary), Delpha (technical and environmental), Linklaters (legal, tax & structuring), LPA (financing), Delsol (development contract), JLL (real estate buy-side). La Banque Postale, who has provided financing, was advised by Wargny & Katz and Depardieu Brocas Mafféi.
The Holding Financière JL, represented by its family office Family Partners, was advised by Cushman & Wakefield and BNP Paribas Real Estate (co-exclusive mandate), and Roquépine Notaires.


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