Target Information

EDF Invest has acquired the remaining 20% stake in Campus Cristal from AG Real Estate France, having previously purchased 80% of the shares in 2014. This transaction was finalized at the beginning of January 2023, marking the complete ownership transfer of the asset to EDF Invest.

Campus Cristal, located in Gennevilliers within the Carré92 business park, was developed by AG Real Estate France. The property encompasses approximately 90,000 m² and is recognized for its BBC (low energy building) certification. The campus comprises nine buildings primarily utilized as office spaces that surround a picturesque water garden. Since its completion in August 2012, the site has been leased to Thales Communication & Security, accommodating 4,200 employees on a firm lease through to 2030.

Industry Overview in France

The French real estate market has shown resilience, particularly in the commercial and office space sectors, despite global economic challenges. As companies adapt to hybrid working models, the demand for flexible office spaces has surged, yet prime properties, especially those offering energy-efficient solutions, remain highly sought after.

Urban areas like Paris and its suburbs, including Gennevilliers, are increasingly attractive to investors due to their robust economic infrastructures and burgeoning tech and finance sectors. The Carré92 business park, where Campus Cristal is situated, benefits from excellent connectivity and offers businesses a strategic location to thrive.

The trend towards sustainability in real estate has led to increased investment in low-energy and environmentally friendly buildings. Properties with certifications such as BBC are appealing to investors and tenants alike, aligning real estate portfolios with contemporary demands for sustainability and economic efficiency.

Furthermore, the evolving landscape of telecommuting and digital transformation has prompted businesses to reassess their physical space needs, thereby influencing investment strategies in the commercial real estate sector.

Rationale Behind the Deal

This acquisition aligns with EDF Invest's strategy to enhance its portfolio of sustainable and efficient properties. By acquiring the remaining stake in Campus Cristal, EDF Invest not only solidifies its presence in the desirable Gennevilliers market but also ensures long-term rental income through its lease agreement with Thales Communication & Security, which is secured until 2030.

Additionally, the investment is poised to benefit from the growing trend toward eco-friendly office spaces, making Campus Cristal a valuable asset in EDF's real estate strategy.

Investor Information

EDF Invest is the investment arm of the EDF Group, focusing on long-term infrastructure investments with an emphasis on sustainability and environmental responsibility. The firm has a strong portfolio that includes various real estate assets across Europe, and it aims to invest in properties that provide stable cash flow and strategic growth opportunities.

With its commitment to sustainable development, EDF Invest is well-positioned to capitalize on the increasing market demand for energy-efficient commercial properties, thereby enhancing its investment offerings.

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The acquisition of the remaining stake in Campus Cristal by EDF Invest is viewed as a strategically sound investment. The property’s firm lease agreement with Thales Communication & Security until 2030 ensures a steady cash flow, mitigating investment risks typically associated with commercial real estate.

Moreover, EDF Invest's focus on sustainability aligns with current market trends, as the demand for energy-efficient buildings continues to grow. The BBC certification of Campus Cristal enhances its attractiveness to environmentally conscious tenants, positioning it favorably within the broader investment landscape.

Given the strategic location of the campus within the thriving Carré92 business park and the enduring demand for quality office space in the Greater Paris region, the decision to consolidate ownership of Campus Cristal appears to be a prudent move for EDF Invest.

In summary, this deal not only strengthens EDF Invest's real estate portfolio but also reflects its commitment to sustainable, long-term investment strategies, making this acquisition a potentially favorable opportunity in the current market context.

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