The story of the “Jeuneurs” office building and Raiffeisen Immobilien KAG got off to a slightly frightening start in 2006, when a fire broke out in a 5th-floor kitchenette on the day of closing, when the purchase price was to be transferred. Ultimately, however, Immo-KAG was able to successfully complete the transaction for one of the real estate funds it manages, albeit with a slight delay.

The six-story building was originally erected in 1972 with approximately 5,800 square metres of floorspace, as well as a separate, seven-level underground car park providing 300 parking spaces, which – rather unusually – was jointly owned. Basically, the property was in its original condition when it was purchased, i.e. it had never been thoroughly renovated. The massive concrete curtain-wall façade was typical for the architecture of the 1960s and 1970s. Despite the condition of the building, it was fully leased out thanks to the good location: it is situated in the so-called “Sentier” neighbourhood, a historical part of town in the second district of Paris, near the city’s old stock exchange. Over the last 250 years, this part of town was mainly characterised by textile trading, but starting from the 1990s it also became home to many Internet start-up companies thanks to the good data connections. Nonetheless, at the time of purchase, it was not part of central business district (CBD) in Paris, and most of the tenants were from the IT sector.

Due to the mounting pressure on rents and considering the age and condition of the building, in 2014 there was an architectural tender for the renovation of the property, which was won by Axel Schoenert Architectes. The very good construction quality of the load-bearing structure from the early 1970s and the fact that the building plot was already fully utilised made it easy to decide in favour of full renovation, rather than a new build.

Along with economic considerations, the following sustainability aspects were also defined as parameters for the renovation project in 2014:

• Preserving the existing structure as much as possible (cost savings)

• Ensuring maximum flexibility in utilisation (leaseability)

• Asbestos-free building (health and reuse)

• Optimising energy efficiency (reducing operating costs)

• Certification of the property (quality certification)

Although building certifications were not such a common feature on the real estate market in 2014, even back then Immo-KAG was interested in certifying its properties in the interests of sustainability, as a long-term investor.

However, before the project could be carried out, it was necessary to go through a very meticulous process of agreeing with the majority of the roughly 120 co-owners of the car park and also terminating the existing leases to enable timely execution. Once this work was done, the project development and construction permitting could get underway. In 2016, an application for the renovation including a completely new glass façade was submitted to the authorities. However, the Commission du Vieux Paris (a commission of experts advising the construction authorities on historical preservation matters) insisted that the façade from the 1970s be preserved. At a number of meetings, it was finally possible to convince the Commission and the authorities that a new façade was preferable, in particular so that the task of removing the asbestos from the building was not left to future generations. In order to establish a link to the appearance from the 1970s, a new façade was designed in agreement with the Commission. The project was then finally approved in 2017, and the last remaining tenant left the property shortly before construction began at the end of 2017.

Comprehensive renovation work started in 2018, with only the load-bearing structure (skeleton) being left in place. The car park with its roughly 300 parking places remained in operation throughout the project. During the same year, a lease was concluded with a single tenant for all of the office floorspace. One key point in this regard was certification of the lease contrast as a “green lease” for its whole duration. An agreement was also reached to have a say in the tenant’s selection of finishing materials, so for example no PVC may be installed.

Nowadays, five years later, this is completely normal, and certifications documenting the quality of the property and the careful selection of building materials are a fundamental prerequisite for sustainable project development, in the interests of both the property owner and the tenant. Back then, it took a lot of hard work and convincing to reach such an agreement.

After the project was completed, the entire property was transferred to the tenant on 15 March 2020, which just happened to be the day that the first COVID lockdown started. The successful transfer amidst these difficult conditions once again underlines the commitment and dedication of both the tenant and the lessor, as well as the quality of the building itself.

Now, in 2023, the difficulties and enormous efforts required have faded into the past and “UFO Paris” is one of the flagship properties in the portfolio managed by Immo-KAG. UFO Paris ranks among the most modern office buildings in the centre of Paris and is also one of just five buildings with a Platinum certification by WiredScore. This downtown area has developed into an excellent location and is now also a prime business location as part of the CBD (“location, location, location!”).

DI Alfred Hajdu MSc
Senior Asset Manager bei der Raiffeisen Immobilien KAG