Benson Elliot, GCI seal EUR 138m refinancing for Paris' Opéra Portfolio

Private equity real estate firm Benson Elliot Capital Management (Benson Elliot) and Générale Continentale Investissements (GCI) have clinched a EUR 138 mln debt restructuring of the 36,000 m² Opéra Portfolio in the first refinancing of securitised debt to be completed in France since the start of the credit crisis.

The EUR 138 mln loan facility was provided by a syndicate of three banks: Landesbank Hessen-Thüringen (Helaba), Aareal and Credit Foncier de France, with Helaba acting as facility and security agent. The flagship property in the portfolio is the well-known Opéra Italiens building in Paris' Central Business District. Once the headquarters of French daily Le Monde, the property is today occupied in its entirety by the Justice Ministry. The portfolio also includes a property in the 13th district (L'Olympique) and two office buildings in the popular western suburb of Issy Les Moulineaux.

Since acquiring the portfolio in 2007, the partners have increased occupancy from 65% to 99%. Major leases have been extended with the Justice Ministry and French publisher Editis, which has expanded to 8,000 m² in L'Olympique, on a fixed-term lease expiring in 2020. New leases have been completed with companies such as Socotec, Oracle and France Telecom. In addition, the partners profitably sold two assets in 2008: Matignon and Belles Feuilles.

'This refinancing is a major milestone for the French market and for Benson Elliot. It shows that banks remain enthusiastic about funding quality assets, in major markets, with strong sponsors,' said Joseph De Leo, partner and head of Portfolio Management at Benson Elliot. 'Our business plan remains on track and we look forward to working with GCI to create further value in the Opéra Portfolio during the coming years.'

Benson Elliot Capital Management (Benson Elliot) is a leading independent private equity real estate fund manager with over EUR 700 mln of assets and EUR 850 mln of equity under management. The firm has a pan-European investment approach and has transacted in the UK, Germany, France, Hungary, Slovakia, Spain, and Denmark.

Générale Continentale Investissements (GCI) was created in 1975 by Paul Raingold and has been involved in real estate investments totalling over EUR 2.5 bn and amounting to more than 1 million m² of top quality office and other commercial property space in the main business districts of Paris, the greater Paris region and other major French cities.