NIBM, Swiss Life Buy Paris Asset for $192 Million

Norges Bank Investment Management (NBIM), a unit of Norges Bank and responsible for the management of Norway’s Government Pension Fund Global, and Swiss Life Asset Managers have acquired an asset in Paris through their joint investment vehicle.

While NBIM has agreed to acquire a 65% stake for $125.21 million in the office component of the property Les Ateliers Gaite, a mixed-use mall located in central Paris, through its partnership with Swiss Life Group, the remaining 35% stake for $66.87 million, will be held by Swiss Life Asset Managers of Swiss Life Group.

The agreement was signed with the seller of the property, Unibail-Rodamco-Westfield, on 30 September and the transaction is expected to be concluded in Q4 of 2024, after securing mandatory clearances.

The property is valued at a gross price of $190.97 million and will be unencumbered by debt, and no financing will be involved in the transaction. The property comprises approximately 12,500 square meters of office space.

Launched in 2022, the joint investment vehicle managed by Swiss Life Asset Managers targets core assets in Berlin and Paris, predominantly with commercial use.

This new transaction underlines its ability to source high quality real estate assets through local and specialised teams. Berlin and Paris are dynamic and futureproof cities with exemplary development ambitions in the areas of sustainability and modernisation.

Other Properties

Besides acquisition of Les Ateliers Gaite, NBIM, along with AXA France, sold the Society Lorette property in Paris in 2022. The property was acquired in 2011 and sold to Groupe Industriel Marcel Dassault. NBIM received $143.81 million for its 50% stake in the property.

NBIM and AXA Group have also formed a joint venture to purchase seven properties for $777.73 million, located in the western and central districts of Paris in 2011. The properties consisted of about 156,000 sq. m. of office space.

NBIM, which manages Government Pension Fund global, values its global real estate holdings at over $28 billion across 899 properties. Of these assets, 453 are located in the US and they include 409 industrial assets, 43 offices and one retail property.

The Fund has 439 properties in Europe valued $14 billion and they include 82 each office and retail properties besides 15 residential properties. In Japan, NBIM has four office and two retail properties valued $691.5 million.

While the Fund holds minority stake in 566 of its 899 properties, it owns up to 50% stake in 275 properties and is a majority stake holder in 46 buildings.