At the end of last week, Place Saint-Michel, in Paris' fifth arrondissement, was the scene of a major deal, according to our information. The buyer, Magellim REIM, has been seduced by this "picture-postcard" location, just a stone's throw from Notre-Dame.
The historic subsidiary of the Magellim Group, chaired by Steven Perron, has acquired a large part of the building at number 3, which also has an entrance at 36 rue de la Huchette. The acquisition, signed with a private party, covers the entrance and upper floors of this 2,060-square-meter Haussmann building. The ground-floor retail space, still owned by Generali Real Estate, is home to a Sephora cosmetics chain store.
Magellim REIM paid €32 million for this mixed-use development of residential and office space, according to our sources. However, its investment doesn't stop there. It is preparing to invest €14 million in capex to convert this unoccupied asset into a boutique hotel, thereby raising it to the select group of five-star hotels in Paris.
As part of this operation, the real estate investment and asset management specialist is acting on behalf of a value-added fund, accessible from €100,000 and targeting a net investor IRR of over 9%. The transaction has been facilitated under the watchful eye of Armen Asset Management, a hotel management specialist and Magellim Group shareholder since 2024.
"All planning permissions have already been granted," stresses Steven Perron, contacted today by Business Immo. As the designer, ASL Paris is expected to start refurbishing the property next June, with completion expected "18 months later," notes the founding president of Groupe Magellim, who unveiled his strategy two weeks ago.
The 39-room establishment will also include a bar, spa and swimming pool. It will be operated independently, without a franchise. "We will thus control the risk chain from A to Z and... value creation from A to Z," explains Chairman Perron of Magellim REIM.
"This acquisition, carried out with Armen Asset Management, illustrates our expertise in the evaluation of urban assets with excellent fundamentals," summarizes Perron. He promises that "This is the first investment in a long series," and proof that he believes in this asset class. "We have other projects in the pipeline in Paris. In line with our DNA, we are also targeting major cities. Two additional acquisitions are thus targeted for 2025."
'The value-added professional fund hosting this future boutique hotel is still being marketed." "The fund's operations create financial and extra-financial value," notes its owner, who is delighted with the funds currently being raised. "The views are breathtaking, and so is the project."
For this acquisition, Magellim REIM obtained financing from Crédit Agricole Île-de-France and BPI France, for a leverage effect of between 50% and 60%. The Magellim Group subsidiary was also advised by C&L Notaires, Orfeo and Galm Avocats.