Paris $790 Million Skyscraper Sale Said Weighed by FdR

Fonciere des Regions is weighing the sale of CB21, an office skyscraper in Paris’s La Defense district, according to two people with knowledge of the matter.

The 41-story tower is valued at about 700 million euros ($790 million) and tenants include American International Group Inc., said the people, who asked not to be identified because the process is private.

Fonciere has a 75 percent stake in the building, while CNP Assurances SA owns the rest, according to the people. Spokeswomen for Fonciere des Regions and CNP declined to comment.

Values in La Defense are rising as investors seek to take advantage of increasing occupancy and to avoid record-high prices in central Paris. Tenant demand for offices in the skyscraper district is increasing as companies seek modern space in refurbished and newly constructed buildings. The amount of unoccupied space is falling as a result, though rents for workspace are largely unchanged, Norway’s oil fund said in a report on Thursday.

More than 74,000 square meters (797,000 square feet) of office space was leased in the first quarter, making it the best first-quarter performance since 2009, according to data compiled by Cushman & Wakefield Inc. That included Deloitte’s lease of almost 30,500 square meters of space in the Majunga Tower, completed two years ago by Unibail-Rodamco SE, Cushman said.

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