Blackstone buys $819 million trophy Paris office

By Iain Withers

LONDON (Reuters) -Blackstone confirmed on Wednesday it had bought a trophy office building in central Paris for about 700 million euros ($819 million), in a sign investors are warming to premium office properties after a post-pandemic drop in activity.

The private equity giant said it had agreed to buy the more than a century-old Centre d'Affaires building in Paris' Trocadero district from German investor Union Investments, which had previously bought it for 284 million euros in 2003.

Reuters previously reported Blackstone bid for the asset, which also attracted interest from multiple bidders including U.S. property investor Hines.

Global office prices tumbled after the COVID-19 pandemic, upended working patterns, and while return-to-office mandates have improved the picture, major office sales remain rare as investors scan for signs of improved activity.

"This acquisition underscores our confidence in the European office market and belief that the right assets in prime locations ... continue to offer compelling opportunities," said James Seppala, head of real estate in Europe for Blackstone.

The 41,000 square metre Paris building also contains 57 luxury apartments, catering and cafes. The transaction is expected to close in the fourth quarter of 2025.

($1 = 0.8542 euros)

(Reporting by Iain Withers; Editing by Tom Hogue)