AffiParis, which is in the process of merging with French REIT Affine Group, has accepted an investor’s purchase offer for an office building located on the corner of the rue Paul Baudry and the rue de Ponthieu in Paris' eighth district. The transaction price amounts to EUR 96 mln, which is 1.5% lower than the value recorded in the consolidated financial statements as at 30 June 2012.
AffiParis, which is in the process of merging with French REIT Affine Group, has accepted an investor’s purchase offer for an office building located on the corner of the rue Paul Baudry and the rue de Ponthieu in Paris' eighth district. The transaction price amounts to EUR 96 mln, which is 1.5% lower than the value recorded in the consolidated financial statements as at 30 June 2012.
The preliminary sale agreement is expected to be signed in the next few days, with a view to a sale before the year-end. Given the loss recorded by the company on the sale, this transaction will not give rise to any mandatory dividend payment, AffiParis said.
The building, which is located in Paris’ central business district, is a 9,400 m2 fully-let office complex, consisting of seven independent buildings that surround a central garden, with 113 parking lots. The building premises are almost entirely occupied by a corporate law firm since October 2006; the lease was renewed for a fixed six-year term in August 2011.
AffiParis said this deal enables it to sell an asset that accounted for an excessive portion of its portfolio, as it represented around 50% of the company's total portfolio value.
AffiParis owns a portfolio of 10 buildings with an estimated value of EUR 207 mln and a total surface area of 39,000 m2.
