PARIS — Real estate company Hines has bought Colette’s former digs on Rue Saint-Honoré, the hottest street in the property market in Paris, adding the future Yves Saint Laurent flagship to its growing list of high-profile transactions.
“This acquisition is perfectly in line with our investment criteria and the acquisition is an excellent addition to our existing portfolio of prime high-street retail as well as office assets,” Peter Epping, senior managing director at Hines and manager of the fund that made the investment, European Core Fund, or HECF, said in a statement.
The transaction covers more than 8,000 square feet on three floors of a corner on the Rue Saint-Honoré and the Rue du 29 Juillet, a section that became a buzzing destination over the years, thanks to the popularity of the concept store run by Colette Roussaux and her daughter Sarah Andelman. The pair closed the store in December last year after a two-decade run. Kering-owned Saint Laurent, which has signed a long-term lease for the space and took on Colette’s staff, is remodeling the space with a view to open early next year.
“This off-market deal shows yet again that we can position ourselves to conduct transactions quickly providing surety to the sellers,” said Xavier Musseau, managing director for Hines in France.
Financial details were not disclosed for the purchase of the space from the Roussaux family.
The Texas-based real estate firm said its fund behind the deal is an open-ended investment vehicle created in 2006 to buy and manage assets in key European cities and is the fourth acquisition in the past year following other transactions in Dublin, Amsterdam and Edinburgh.
Hines was also involved in one of the highest profile transactions in the French capital — the purchase of the future location of an Apple flagship on the Champs-Élysées by German pension fund Bayerische Versorgungskammer, or BVK. The nearly 600 million euro deal pushed the value of prime properties to new levels.
The rise of e-commerce has forced brands around the world to pull back on relentless store expansion that fueled growth in the past and focus instead on fewer, choice locations. High levels of tourism in France have played an extra role in boosting property prices in Paris.