A true gem of neoclassical style located in the 8th arrondissement of Paris, the Cercle National des Armées (CNA), better known as the Cercle Militaire, will benefit within five years from a complete makeover for half of its surface area. Carried out at the expense of the new concessionaire, the Duval group, for an announced amount of 50 million euros, the work will concern 12,000 square meters out of the 24,000 square meters of this building dating from 1928.
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The project was launched on October 22, in the presence of Christophe Mauriet, secretary general for administration of the Ministry of the Armed Forces, and Eric Duval, CEO of the eponymous real estate complex. The project is closely scrutinized by the ministry, due to the unique architecture of the assembly.
Neutral addition for the Ministry of the Armed Forces
« The dealership model is original and atypical, because it encompasses not only renovation work, but also operation and services, and finally, upkeep and maintenance, which are the responsibility of the dealership.explains Etienne Caudy, project director at the Department of Territories, Real Estate and the Environment (DTIE) at the ministry. Thus, the Armed Forces will not have to pay anything in terms of investment and operating budgets. In addition, they will receive a percentage of the dealership’s turnover. ».
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The annual royalties should, in this case, be between 100,000 and 200,000 euros. In return, the Duval group will operate the so-called “fruiting” part of the building. This is made up of businesses at the foot of the building, and offices on the upper floors.
“Given the heritage value of the architectural ensemble, approximately 100 million euros, we have surrounded ourselves with maximum guarantees so that it is renovated and operated according to the rules of the artassures Sylviane Bourguet, boss of the DTIE. The financial strength of the Duval group, generating self-financing capacity from its own funds, was decisive in our choice “. Several other candidates, including NGE, a subsidiary of the Vinci group, were also in the running.
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Presented as a first by Etienne Caudy, the assembly implemented at the CNA should be applied in 2025 to two other prestigious buildings owned by the Ministry of the Armed Forces.
First of all, this concerns the Cercle Naval de Toulon, the Var prefecture where the French base for nuclear attack submarines (SNA) is located. This art deco style real estate asset with an area of 3,500 square meters is currently decommissioned and could thus be valued. A call for applications should be launched in the short or medium term.
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The Récollets barracks at Versailles in Yvelines, built in the 17th century, could also be subject to the same concession model. In the longer term, it should concern other prestigious real estate, located outside Defense activities, which are currently being identified in Brittany, Center-Val de Loire and the Lyon region.
First occupant of the public domain
Since 2015, the State Real Estate Department (DIE), dependent on Bercy, has undertaken a new policy relating to the management of State assets. It can be summed up in three instructions: optimizing the occupancy of buildings, enhancing real estate, and accelerating their energy renovation.
Looking for savings to drastically reduce the state’s lifestyle, Michel Barnier’s government intends to accelerate this strategy. If the Armed Forces act as a good student, they are intended to be imitated by other ministries.
The fact remains that the head start they have taken can also be explained by their leading real estate situation. Sitting on a land base of 275,000 hectares including 33 million square meters of buildings, the Ministry of the Armed Forces alone occupies a third of the French public domain.
