SFL to sell Paris IN/OUT building to Primonial

French fund Primonial has purchased the IN/OUT office building in Paris from SFL, the French subsidiary of the Colonial Group.

The sales price is estimated to be €400 million ($470 million), according to media outlets.

The IN/OUT office building totals 380,000 square feet located in the Boulogne-Billancourt district in Paris. It is the headquarters of the Organization for Economic Cooperation and Development.

The IN/OUT building was designed and built by SFL through a redevelopment of the historical Phillips headquarters in Paris.

Approximately €2.5 billion ($2.9 billion) was invested in the Greater Paris region over the second quarter 2017, taking the overall investment volume for the first half of 2017 to €5 billion ($5.9 billion), according to JLL. This represents a 27 percent year-on-year decrease.

Decreases were seen across all areas in the Greater Paris Region, apart from the Western Crescent, which totaled €1.5 billion, up 28 percent year-on-year.

There has been a complete lack of mega-deals in the major transactions segment over the first half of 2017, whereas in 2016 there was Beacon Capital Partners’ sale of the “First” tower for an estimated €800 million ($940 million). Amundi Immobiler’s acquisition of “Vivacity” from Blackstone Group for an estimated €370 million ($435 million) was the largest transaction in the first half of 2017. While the number of transactions for lot sizes more than €100 million ($118 million) remained unchanged year-on-year, this segment only secured €2.5 billion ($2.9 billion) in investments over the first half of 2017, compared with €3.4 billion ($4 billion) over the same period last year (–27 percent).

With a high level of activity on the sell side last year, foreign investors remained active over the first half of 2017 with almost €1.8 billion ($2.1 billion) of assets sold (38 percent of activity). American investors were by far the most active (more than €1 billion/$1.2 billion of asset disposals), followed by German investors (€400 million/$470 million), while French investors carried out almost €2.9 billion ($3.4 billion) of disposals.

Offices retained their position as the most sought-after assets and accounted for €4.3 billion ($5.1 billion), or 85 percent, of investments.