Thursday, July 10, 2014

Group Acquires Property Portfolio in Central Paris

On June 25, The Olayan Group, in association with Chelsfield, completed the purchase of the Paris real estate portfolio from Risanamento S.p.A., the Italian publicly listed real estate company.  The value of the acquisition makes this the largest single real estate deal The Olayan Group has undertaken to date.

The portfolio comprises eight real estate assets in central Paris with 70,000 square meters (more than 750,000 square feet) of prime office, retail, and residential space.  The assets are located predominantly in the 8th arrondissement in the prestigious area of Avenue Montaigne, Rue Francois 1er, and Rue du Cirque. The acquisition may subsequently include additional assets.

Debt financing was provided by ING, Société Générale, BNP Paribas, and CACIB.  ING acted as global coordinator and financial advisor, Société Générale as the hedge coordinator, and BNP Paribas Real Estate as an investment advisor.  CACIB will be the facility agent. The four banks were mandated lead arrangers.

The Olayan Group was advised by Chelsfield, the law offices of Baker & McKenzie, Carnelutti Studio Legale Associato, Loyens & Loeff, and the notary offices of Le Breton & Associés. BNP Paribas Real Estate will be the property managers and Chelsfield, the asset managers.