Singapore’s GIC buys Grade A office tower in Paris for reported $592m

Photo: Reuters

Singapore’s sovereign wealth fund GIC announced its acquisition of PB6, a Grade A office tower in La Defense, the high-rise business district west of Paris, for an undisclosed amount.

French media reports pegged the deal value at €530 million ($592 million).

For GIC, the PB6 acquisition comes a year after it agreed to acquire Tour Ariane, a 40-storey office tower in the same district, for $537.1 million.

In the latest deal, GIC said PB6, an iconic 40-storey asset, represents “attractive value creation opportunities” that it wants to capture by investing to enhance the asset and service offering.

PB6, also known as Tour EDF, was built for and is fully leased by Electricite de France (EDF), France’s main electricity company. It is the tallest skyscraper built in La Defense business district in Paris.

The tower features 60,000 square meters of prime office space. The acquisition is in line with GIC’s strategy, as a long-term investor, to acquire and add value to quality assets in gateway cities, the firm said.

In October last year, GIC acquired Tour Ariane, another 40-storey office tower in the heart of the La Defense business district in Paris. The property was acquired from Unibail-Rodamco-Westfield, a European commercial real estate company.

GIC is one of the biggest overseas private equity investors in Europe. According to a PitchBook report, GIC invested $14.13 billion in Europe in the second quarter of 2018, emerging as the largest foreign PE investor during that period, overtaking 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.

GIC has also been actively investing in the global real estate space. Recently it acquired a 25.1 per cent stake in Lendlease International Towers Sydney Trust (LLITST) from Canada Pension Plan Investment Board and Australia-based property developer Lendlease.

LLITST holds assets located in the Barangaroo Office Precinct in the Sydney central business district (CBD) – close to Darling Harbour.

Early this month, it agreed to acquire four hotels in the US for $249 million through its recently formed joint venture with NYSE-listed real estate investment trust Summit Hotel Properties.

It is also nearing a deal to buy a majority stake in Oxford Properties Group’s Fairmont portfolio, which consists of four of Canada’s most iconic hotels, according to people familiar with the matter.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.