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Tokoro Capital, a next generation real estate investment manager set up by Sanjay Sethi and Max Bassadone, has acquired 86 Rue De Courcelles, an office building in a super prime location in the iconic 8th Arrondissement of Paris, from a JV between Angelo Gordon and S2i Partners. The property is currently vacant following a major refurbishment, with Tokoro Capital having already begun to sound out potential interested occupiers.
The off market acquisition is the first made by Tokoro Capital since it launched in April 2020 having closed its maiden Fund, TKO-I LP with c. €250 million of investable capital, assuming leverage. It is targeting office opportunities in the €20 million to €100 million value range with an initial focus on Paris and London, Europe’s two most liquid and transparent real estate markets, but will consider assets in other European gateway cities.
Formerly a Hotel Particulier dating back to c. 1864, the recent refurbishment included a new roof, windows, internal stairwell and amends to the internal floorplates, delivering c. 1,100 sqm of best in class Grade-A office space, across four floors behind a carefully restored external façade. Following signficant landscaping and external works, the building also benefits from an abundance of outside space including an 86 sqm terrace on the second floor and 110 sqm courtyard.
The property is designed to achieve a BREEAM ‘Very Good’ rating and is in an outstanding freehold location in the 8th Arrondissement, Paris’ main commercial sub market which is home to more than 33,000 businesses. Less than 200 metres from Parc Monceau, one of Paris’ premier parks, the property is ideally located a short walk from Charles de Gaulle–Étoile metro station which is beneath the Arc De Triomphe and connects directly to both Charles De Gaulle and Orly airports.
Tokoro believes that the recent renovation positions the office to benefit from the favorable long term Paris CBD office market characteristics. Whilst a short term pause in take up as a result of Covid-19 is forecast to lead to a small increase in what were historically low vacancy rates, a deficit of available investment grade stock and tenant demand for Covid-proof buildings will support both income and capital value growth over the longer term.
Source : Company