Information on the Target

Abenex Value I, an SRI-certified real estate fund, has successfully acquired a property located at 69-71-73 rue Archereau & 91-93-95 rue de l’Ourcq in the 19th arrondissement of Paris. This acquisition was executed through a newly established dedicated vehicle managed by Abenex, with the backing of prominent institutional investors.

The asset is strategically positioned between the La Villette district and the Canal de l’Ourcq, within a vibrant residential and commercial area that includes a variety of educational institutions and catering establishments. Notably, the site benefits from excellent public transport access, situated just 350 meters from metro line 7 and 550 meters from RER E, enhancing its connectivity.

Industry Overview in France

The real estate sector in France has displayed robust growth, particularly in urban areas like Paris, where demand for residential and commercial spaces continues to rise. As one of the largest property markets in Europe, France’s real estate values have been buoyed by a combination of low interest rates, high foreign investment, and favorable government policies aimed at promoting housing supply.

In recent years, sustainability has become a primary focus within the real estate industry, with an increasing emphasis on energy efficiency and environmentally friendly development. This shift is driven by both regulatory frameworks and the preferences of eco-conscious investors and tenants who prioritize green buildings.

The Paris region, in particular, has witnessed significant investments in infrastructure, including transportation links and public amenities. Such developments further enhance the desirability of properties in the area, making it a hotspot for both residential and commercial investment.

Additionally, as cities evolve, there is a growing trend toward repurposing existing structures and optimally utilizing underdeveloped lands for mixed-use projects. This trend aligns closely with Abenex's value-add investment strategy, emphasizing renovations that improve energy efficiency and overall asset performance.

The Rationale Behind the Deal

The acquisition of this real estate asset aligns seamlessly with Abenex's core investment strategy. First, the location and intrinsic qualities of the property present a balanced risk profile, suitable for an existing asset. Secondly, the potential for value creation through comprehensive upgrades in energy efficiency positions the investment for future growth and sustainability.

Moreover, the property offers substantial opportunities for additional construction, including converting existing parking spaces into usable floor space, adding a zenithal glass roof, and developing a roof terrace. These enhancements are expected to further increase asset value and appeal.

Information About the Investor

Abenex is a distinguished investment firm with a strong commitment to responsible investment practices. As a certified B-Corp organization, Abenex integrates social and environmental considerations into its business model, placing a focus on creating value beyond mere financial returns. With a diverse portfolio, Abenex actively engages in real estate investment and management, targeting properties that present opportunities for sustainability and community impact.

Currently, Abenex Value I manages a portfolio that includes a total of nine projects, of which seven are undergoing repositioning or transformation initiatives. With a goal to surpass €150 million in assets under management, Abenex continues to expand its investments in resilient and liquid assets, which is crucial in the prevailing market environment.

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The acquisition of the property at rue Archereau and rue de l’Ourcq appears to be a promising investment for Abenex Value I. The combination of a prime location in an area undergoing revitalization, coupled with plans for significant renovation, suggests that the asset is poised for appreciation in value.

Abenex's commitment to sustainability and energy-efficient upgrades not only meets current market and regulatory demands but also aligns with the preferences of modern tenants. In a city like Paris, well-located and energy-efficient properties are becoming increasingly sought after, which bodes well for future occupancy rates and rental income.

Furthermore, the opportunity for additional construction and repurposing provides a strategic advantage in maximizing the asset's potential. By enhancing the current infrastructure and amenities, Abenex can create a more attractive offering for tenants, thereby driving demand and increasing long-term revenue potential.

Overall, with a well-structured plan and a focus on responsible investment, this acquisition represents a strategic move that could yield favorable returns while contributing positively to the community and the environment.

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