GRAND PARIS, the heart of the European economy

1st Business center

29 HQs of the world’s largest companies listed in the Fortune Global 500, ranking 3rd in the world after Beijing and Tokyo

1st Office stock

Largest commercial Real Estate portfolio with 54 million m2

1st GDP contributor

More than 30% of France’s GDP and 4,6% of European Union’s GDP, ahead of Greater London and Greater Milan

2% of the Office stock of Grand Paris will naturally become obsolete each year generating a pipeline of approx. 1 million m2 for redevelopment or conversion projects
Paris Residential

Creation of an unprecedented porosity between the Office sector and one of the biggest residential markets in Europe

12 million

inhabitants

5.1 million

households

+300K housing units

current shortfall

A unique transportation network that will reset the Paris map

Europe’s biggest ongoing infrastructure project over the next 1O years

  • 200 km of new metro lines 100% automatic
  • 68 stations – 90% underground
  • 2M passengers every day
  • All Parisians connected by high-speed fiber-optic

Objectives

  • Curbing the urban sprawl by promoting the use of public transport
  • Linking all the cities of the inner rim of Paris mainly built after 1950
  • Reducing travel time dramatically , often 2x less than before

Impacts

  • Induced GDP +100bn €
  • 18M m2 of real estate development opportunities
  • Greenhouse gases -27M tons of CO2 by 2050
Kareg SGP Metro Map
Disruptive savings in travel time
Source: Société du Grand Paris (French version)
Societe du grand paris

Since the Elan law passed in 2018, investors can more easily balance their exposure between Offices and Residential. Because 45% of the Office stock is more than 25 years old, the timing of this new law is excellent.

The Residential sector, a new alternative for Institutional Investors

A new deal

Financial equilibrium between restructuring and conversion which facilitates exposure management to the 2 biggest RE sectors

A strong demand

Lack of new supply led to a structural shortfall above 300,000 homes in the Grand Paris

An unprecedented pipeline

The obsolescence of the Office stock could generate an annual pipeline up to 1 million m2

Conversion, an alternative to Restructuring: Why now ?

Kareg Conversion waves

We see now a combination of Key Success Factors creating a strong momentum toward conversion.

Paris City Apartments