Brainsre compiles below the weekly news highlights.
Residential – Paris 17th: Oscar Développement sells 8 rue Léon Jost
- The building at 8 rue Léon Jost in the 17th arrondissement of Paris has been sold as a whole by Oscar Développement to Solifap and AG2R La Mondiale.
- The 500 m2 property, consisting of twelve units including two commercial spaces on the ground floor, will be rehabilitated to accommodate individuals with mental health disorders.
- The project, managed by the Fondation Falret, is expected to be completed in the last quarter of 2024 and promotes inclusive, ecological, and virtuous housing principles.
Companies – Norma Capital committed over €100m to its SCPIs in Q1
- Norma Capital acquired over €100 million worth of assets for its SCPI funds in the first quarter of 2023. This includes 19 new assets for Vendôme Régions and Fair Invest SCPIs in various locations across France, as well as the first asset for the European NCap Continent SCPI in Madrid, Spain.
- Vendôme Régions SCPI added 18 new assets, including commercial spaces, offices, and industrial buildings, with a total value of over €96 million. Some notable acquisitions include retail spaces in Isère and Cabries, as well as industrial premises in Cormontreuil.
- Fair Invest SCPI acquired a nearly 600 m2 medical center in Fontainebleau/Avon and secured a promise of sale for a 165 m2 daycare facility in Lyon. Meanwhile, NCap Continent SCPI made its first acquisition in Madrid, consisting of a renovated 2,700 m2 industrial building occupied by Volta Trucks.
Market – The market is sliding into crisis in the Paris region
- The real estate market in the Paris region (Ile-de-France) has experienced a significant decline in sales volumes, with a 22% decrease in the first quarter of 2023 compared to the same period in 2022.
- The main causes of this downturn are attributed to difficulties and increased costs in obtaining housing loans, along with an inflationary context impacting purchasing power. Sellers are also hesitant to accept significant price reductions, further affecting the market.
- While the market in central Paris appears relatively stable, with an average price per square meter above €10,000, the outer suburbs and surrounding areas have seen a decline in sales and a slight decrease in prices. The market in the Seine-et-Marne and Essonne departments is particularly affected.
Offices – 186 Victor Hugo on the market
- Atenor, a Belgian real estate developer, has decided to sell the 186 Victor Hugo property in Paris due to financial difficulties and a prolonged real estate crisis. The building is pre-leased to InSitu for 11 years and is expected to receive permit approval soon.
- Atenor’s stock has been declining since 2019, dropping below €30. In response to the ongoing real estate crisis, the company plans to sell 10% of its project portfolio, totaling around 130,000 square meters of office space, even at a lower profit margin or potential loss.
- To improve its cash flow, Atenor intends to bring in partners for existing projects, recognizing the value created at an intermediate stage of development.
