GIC buys Paris office tower, takes stake in aircraft leasing firm

The real estate investment involves GIC buying Tour Ariane, a 40-storey office tower in Paris, for €465 million (S$740 million).
The real estate investment involves GIC buying Tour Ariane, a 40-storey office tower in Paris, for €465 million (S$740 million).PHOTO: TAKUJI

GIC has made investments in a Paris office block and an aircraft leasing firm, it announced yesterday.

The real estate investment involves GIC buying Tour Ariane, a 40-storey office tower in Paris, for €465 million (S$740 million).

The building, with a gross lettable area of 64,500 sq m, is being sold by commercial real estate firm Unibail-Rodamco-Westfield.

Tour Ariane is in the La Defense business district and near two main transport hubs and amenities.

GIC said it will also benefit from the Grand Paris project, an urban development initiative to improve transport connectivity.

"Tour Ariane offers quality space at affordable rents," the sovereign wealth fund added. "It presents multiple value creation opportunities over the long term, which GIC expects to capture by investing to enhance the asset."

It will be managed by Baumont Real Estate Capital. The transaction is expected to close by the year end.

GIC has also bought a significant minority stake in Denmark-based Nordic Aviation Capital (NAC).

NAC is the world's fourth-largest commercial aircraft leasing company with a fleet of 468 regional aircraft and a total asset base of US$8 billion.

NAC is the world's fourth-largest commercial aircraft leasing company with a fleet of 468 regional aircraft and a total asset base of US$8 billion (S$11 billion).

The transaction will comprise a partial sale by existing shareholders and new capital. The deal will be executed by a GIC affiliate.

 
 

EQT VI, an investment fund by Swedish private equity group EQT Partners, will remain the largest shareholder.

NAC founder Martin Moller remains a significant investor and will continue as chairman.

Mr Choo Yong Cheen, chief investment officer for private equity at GIC, said: "NAC has a strong track record of growth and market leadership in a segment with secular growth drivers. As a long-term investor, we look forward to partnering with Martin Moller and EQT and supporting the future growth of the company."

A version of this article appeared in the print edition of The Straits Times on October 17, 2018, with the headline 'GIC buys Paris office tower, takes stake in aircraft leasing firm'. Print Edition | Subscribe