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Icade has acquired the remaining 49% stake in SAS Tour Eqho, the company that owns the Eqho Tower estate in Paris, from South Korean investors. With this transaction, the French real estate company has taken full ownership of the asset. The company said the acquisition is expected to generate a return of more than 8% and improve its net operating cash flow. The move aligns with Icade’s strategy of strengthening its investment portfolio through selective acquisitions of high-quality commercial assets.
French real estate company Icade has completed the acquisition of the remaining 49% stake in SAS Tour Eqho, the entity that owns the Eqho Tower estate in Paris, from South Korean investors. With the completion of the transaction, Icade now owns 100% of the landmark office asset.
The company said the acquisition was made as an opportunistic investment and is expected to generate a return of more than 8%. It also stated that the deal is expected to have a positive impact on the group's net operating cash flow.
Eqho Tower is one of the prominent office buildings located in La Défense, Paris' largest business district. The tower has long been part of Icade's investment portfolio, and acquiring the remaining minority stake gives the company complete control over the asset, including future leasing, asset management and redevelopment decisions.
The acquisition comes as several European property companies continue to look for opportunities created by changing real estate valuations and evolving investor strategies. Institutional investors from Asia, including South Korea, have been active investors in European commercial real estate over the past decade, although many have recently been reviewing and reshaping their overseas property portfolios amid changing market conditions.
Icade has also been focusing on strengthening the quality of its portfolio while improving recurring income and cash generation. Full ownership of Eqho Tower is expected to support these objectives by allowing the company to capture the property's entire income stream and manage the asset more efficiently.
Source Reuters
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