PARIS-Pramerica Real Estate Investors and Group Hoche have formed a venture to invest about $210.6 million in residential and office developments here. The venture has already spent $35 million to acquire two office properties and a multifamily project.
Pramerica, the European arm of Newark, NJ-based Prudential Financial Inc., entered into an asset management agreement with locally based Groupe Hoche, a private residential and office developer that is owned by Richard Guilhem.
The venture is operating over a two-year period with the assistance of institutional investors, and is looking at properties throughout Paris and the rest of France, including the cities of Lyon and Toulouse.
Guilheim said in a statement that the credit crisis created the need for new residential and office in France. “Mid-market residential properties in greater Paris are highly desirable, given the lack of supply and un-affordability of city center locations, so our aim is to deliver product that will satisfy that demand.”
The three properties already purchased two office buildings totaling about 75,000 square feet in Courbevoie, which may be converted into multifamily units, and a 17,000-square-foot planned multifamily site in Puteaux. The venture expects to submit planning for the first development very shortly, with construction and marketing for pre-sales due to commence later this year, according to a Pramerica statement.
Pramerica’s track record includes finding local partners for development and refurbishment projects in Europe. The company earlier this year announced a $115 million joint venture with Aros in Sweden, and two ventures in Europe totaling $309 million with Panattoni. Pramerica worked previously in Paris with Group Hoche in the purchase of the Rue d’Astorg development in 2002 and the 286,000-square-foot redevelopment of the Tour Qualis office last year.
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