Citadel, a unit of UK property group CLS Holdings, has sold a portfolio of 15 office buildings in the Paris area. The AIM-listed subsidiary sold 14 of the assets to French property company Fonciere LFPI for EUR 44mln in cash. The French company is also taking on about EUR 83mln of debt as part of the deal. But the total transaction volume of EUR 127mln is still lower than the appraised value of EUR 133mln in end-2007.

Citadel, a unit of UK property group CLS Holdings, has sold a portfolio of 15 office buildings in the Paris area. The AIM-listed subsidiary sold 14 of the assets to French property company Fonciere LFPI for EUR 44mln in cash. The French company is also taking on about EUR 83mln of debt as part of the deal. But the total transaction volume of EUR 127mln is still lower than the appraised value of EUR 133mln in end-2007.

The properties, which comprise 50,309 m2 of office space, were purchased by Citadel over the past 10 years for a total of EUR 88mln. The assets generate an annual net rental income of EUR 9mln from 58 current tenants. The deal reflects a net initial yield of 6.9%.

In addition, Citadel's sold its property located at 2 Boulevard Georges Clemenceau in Courbevoie for EUR 7mln to Immovalor, part of insurance group AGF Allianz. Citadel bought this 1,972 m2 building in 2004 for EUR 5mln. The building is fully let to three tenants and generates an annual net rental income of EUR 500,000.

'This acquisition is perfectly in line with the growth plans of the company aimed at expanding our office portfolio in the French region,' said Frédéric Lemos, managing director of Foncière LFPI. The deal brings the value of Foncière LFPI's portfolio to around EUR 600mln.

Atisreal Expertises advised Fonciere LFPI, while Orrick Rambaud Martel acted for the seller. Banks Saar LB, BNP and CFF are financing the deal.