The Grand Paris project, a strong catalyst to accelerate the Urban renewal of the century
The Grand Paris project, a strong catalyst to accelerate the Urban renewal of the century
GRAND PARIS, the heart of the European economy
1st Business center
29HQs of the world’s largest companies listed in the Fortune Global 500, ranking 3rd in the world after Beijing and Tokyo
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
1st Office stock
Largest commercial Real Estate portfolio with 54 million m2
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
Creation of an unprecedented porosity between the Office sector and one of the biggest residential markets in Europe
+300K housing units current shortfall
12 million inhabitants
5.1 million households
A unique transportation network that will reset the Paris map
Europe’s biggest ongoing infrastructure project over the next 1O years
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200 km of new metro lines 100% automatic
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68 stations – 90% underground
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2M passengers every day
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All Parisians connected by high-speed fiber-optic
Objectives
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Curbing the urban sprawl by promoting the use of public transport
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Linking all the cities of the inner rim of Paris mainly built after 1950
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Reducing travel time dramatically , often 2x less than before
Impacts
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Induced GDP +100bn €
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18M m2 of real estate development opportunities
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Greenhouse gases -27M tons of CO2 by 2050
Source: Société du Grand Paris (French version)
Disruptive savings in travel time
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.
Focus on Office-to-Residential conversion
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?
We see now a combination of Key Success Factors creating a strong momentum toward conversion.
