Singapore’s sovereign wealth fund GIC has agreed to acquire Tour Ariane, a 40-storey office tower, in Paris for $537.71 million (€465 million), according to an official statement. The transaction is expected to close in the fourth quarter of 2018.
Tour Ariane is located in the heart of the La Défense business district in Paris and has a gross lettable area of 64,500 sqm. The property was acquired from Unibail-Rodamco-Westfield, a European commercial real estate company.
According to the statement, GIC plans to enhance the asset which it believes will present value creation opportunities in the long term. The property is expected to benefit from the Grand Paris project, which will reduce connection times to major airports and train stations.
GIC is one of the biggest overseas private equity (PE) investors in Europe today. This week, it picked up a significant minority stake in Denmark-based regional aircraft leasing firm Nordic Aviation Capital (NAC).
According to a PitchBook report, GIC invested $14.13 billion in Europe in Q2 2018, emerging as the largest foreign PE investor during that period. The sovereign wealth fund topped other PE giants including KKR & Co, Bain Capital and Macquarie.
Some of GIC’s investments in that quarter included Helsinki-based healthcare firm Mehilainen, London-based property search platform ZPG, and France-based hotel operator AccorInvest.
Singaporean companies have been stepping up their overseas acquisitions recently. According to data compiled by Bloomberg, companies in the city-state announced $91 billion of overseas deals in 2018 through September. This is more than double the $41.9 billion of transactions from the previous year.
Government-linked investors such as GIC and Temasek have been at the forefront of this buying activity in a push to seek growth opportunities and widen their profile.