Oxford Properties has signed a €182.5 million green loan with Aareal Bank to refinance 32 rue Blanche, a 21,000 square metres office building in the 9th arrondissement of Paris.
For the real estate arm of Omers, the pension fund for Ontario municipal employees, this refinancing operation follows an extensive €20 million renovation program, the costs of which were shared by the investor and its tenants, and aimed at upgrading the asset to meet new user expectations. The operation also enabled the property to obtain WiredScore "Platinum" certification and upgrade its Breeam rating from "Good" to "Excellent".
This repositioning, completed by the signing late last year of a 2,800 square meters lease with Swiss company EOS Imaging, has also enabled the property, acquired in 2014 from Carlyle, to increase its rental income by around 30%. Value creation began with the renewal of leases signed with Criteo (9,300 square meters), which has reduced its presence in the building in 2021 to consolidate it on the upper floors, and Mutuelle Interiale (2,200 square meters), and continued with the marketing of vacant space to Sodexo (5,300 square meters).
"The loan we have signed with Aareal Bank confirms the value we have created at 32 Rue Blanche on behalf of our members through the complete renovation of the property and the completion of a successful leasing program," commented Tina Pristovsek, Vice President, Real Estate Finance & Capital Markets - Europe, at Oxford Properties.
Martin Vest, Managing Director Euro Hub at Aareal Bank, added: "The sustainability of a property is not only measured by consumption data. It's also an aspect of good architecture that guarantees long-term use and maintenance of value. The 32 Blanche is an excellent example of this, and we're proud of our long-standing partnership with Oxford Properties."