KanAm Grund Group acquires the BREEAM-certified Opéra Italiens building in Paris for a specialized real estate fund

• The building is in an excellent location and has architectural merit.
• Long-term tenant is WeWork Paris I Tenant SAS, a leading company of the co-working sector.

KanAm Grund Institutional has purchased the Opéra Italiens property for the KanAm Grund European Cities, a specialized real estate fund launched for a northern German pension scheme in 2018. The office building has an area of 7,543 square meters. It is located in Paris’ Opéra district, the heart of the financial industry in the French capital’s center. Seller is Générale Continentale Investissements (GCI). The parties have agreed not to disclose the transaction price.

Opéra Italiens was built in 1911. The property is accessible from three streets and is located at 5-7, Rue des Italiens/14-16, Rue du Helder/11, Rue Taitbout in Paris. The Opéra district has been regarded as a prestigious location for major French banks and insurance companies since the beginning of the 19th century. Over the years, they have been joined by respected companies from the public sector and the print media. Various luxury labels, new economy firms and international co-working operators have further increased the attractiveness of the location. The department stores Galeries Lafayette and Printemps are in the immediate vicinity of the Opéra Italiens building. There are also numerous restaurants, bars and cafés close by.     
The office complex is located on two major traffic routes, Boulevard Haussmann and Boulevard des Italiens. It can be easily reached by metro lines 3, 7, 8 and 9. The urban train station Auber/Opéra, served by the RER A line, is at a walking distance of 300 meters. And the rail station hub Saint-Lazare (with the metro lines 3, 12, 13 and 14, the RER Eole line and domestic train connections) is in the vicinity of the building. The property is also located in the middle of the well-developed network of bike paths.

Architectural re-design of the building in the years 2019 to 2021     
In addition to its attractive location, the building also has architectural merit. On the side facing Rue des Italiens, the façade is executed in typical Haussmann architecture, while on the side facing Rue Helder, the façade consists of Art Deco elements. The Opéra Italiens originally housed the former French newspaper Le Temps, which is still shown by the large clock on the façade. It then served as the headquarters of the newspaper Le Monde and subsequently as the seat of the Paris regional court for financial affairs. 
The building was extensively renovated between November 2019 and June 2021. This included an overhaul of the technical equipment and the elevators. On floor level, all existing partition walls were demolished and the space was completely re-designed. All exterior windows and doors of the building were restored and blinds were installed. The tiling and flooring were also replaced. Additional emergency exits and new staircases were built facing the streets. The Opéra Italiens has seven floors, a mezzanine, a landscaped courtyard and three basement levels. In addition to a bright lobby with lounge, library, bicycle storage and cloakroom, there is also a fitness room. The building can be used barrier-free and is fully air-conditioned. The building has 78 parking spaces and two roof terraces. 

Building meets high quality and environmental standards    
After its modernization the property meets high quality and environmental standards. A BREEAM In-Use Very Good certification and a WiredScore certification have been awarded. In addition, the building complies with the French regulation on improving the energy performance of buildings (décret tertiaire or ‘tertiary decree’) with regard to thermo-technical aspects. Since 2012, owners accordingly have to closely monitor the energy consumption of service buildings with more than 1,000 square meters, with the aim of achieving a specified real reduction in the buildings' energy consumption. 

Long-term tenant of the building is WeWork
The building is rented on a long-term basis to WeWork Paris I Tenant SAS, a leading company of the co-working industry. The first co-working center was established in the city center of Paris in 2016. Since opening in September 2021, the Opéra Italiens center has exceeded expectations, with a current occupancy rate of almost 100 percent. 

City center of Paris has the lowest vacancy rate in Europe
The rental market in central Paris remains resilient despite the impact of the COVID-19 crisis. The key criteria that Parisian users are increasingly looking for when choosing a location include a central location, together with the benefits of an urban mix and vibrant neighborhood life in close proximity to transport hubs. The vacancy rate should remain at a low level of less than three percent in the short, medium and long term. Rental prices in central Paris have risen overall in recent years, due to the low supply of new space. A further upward trend is expected.    
KanAm Grund Institutional was advised in the transaction by SBKG and Victoires Notaires Associés.