A Blackstone-controlled entity has bought two retail units adjoining the Mandarin Oriental, Paris, from Mandarin Oriental International, the publicly listed parent company of Mandarin Oriental Hotel Group, for €148m.
Mandarin Oriental, a subsidiary of Hong Kong’s Jardine Matheson group, which is listed in London with a secondary listing in Singapore, reached a preliminary sale agreement with Lavender Propco SNC, an entity controlled by Blackstone Europe.
The boutiques in rue Saint-Honore are currently leased to high-end fashion houses Versace and Ports 1961. The deal follows Blackstone’s acquisition of a property on London’s New Bond Street in April for €230m.
In a stock exchange filing to the Singapore exchange, Mandarin Oriental said the proceeds would be deployed as part of the group’s general development strategy.
“Mandarin Oriental has a strong pipeline of hotels and residences under development,” it said.
The group purchased the building containing the retail units and hotel in 2013 and divided them into separate titles before selling the hotel to Italy’s luxury hotel operator Statuto Group, for €205m in April.
“The group’s acceptance of the offer for its interests in the retail units is subject to the statutory right of pre-emption by the City of Paris, among other conditions, it is anticipated that final documentation will be signed and completion of the sale of the retail units will take place on or after 30th June 2024,” said the statement.
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