Pension fund manager Caisse de dépôt et placement du Québec says its real estate subsidiary Ivanhoe Cambridge has agreed to buy the Paris head office of PSA Peugeot Citroën for $350-million.
Ivanhoe Cambridge said the deal gives it a foothold in a very sought after area of France's capital.
The office is located in Paris's central business district, on one of the main avenues leading to the Arc de Triomphe. There is a huge opportunity for growth in the property's value owing to the arrival of future metro lines to service Porte Maillot, Ivanhoe Cambridge said.
"We are pursuing our strategic plan to acquire high-quality buildings in the best markets," said Bill Tresham, president of global investments at Ivanhoe Cambridge.
"Investment opportunities such as this one are quite rare these days."
The Caisse subsidiary also said the deal gives it the opportunity to assume ownership of a building that is fully leased for nine years by the well-known auto maker.
Ivanhoe Cambridge, through its subsidiaries, owns a portfolio of 14 office buildings and seven shopping centres in Europe.
It is one of the 10 largest real estate companies in the world, with more than $30-billion of assets in the shopping centre, office and multiresidential building segments in 24 countries.