FdR and France Télécom consolidate partnership

Foncière des Régions (FdR) and France Télécom have signed an agreement to intensify their property partnership in 173 buildings belonging to Foncière des Régions and occupied by France Télécom. The new agreement contains provisions for lease extensions and property sales of buildings occupied by France Télécom to suit the company’s current and future needs, FdR said in a press release.

The 173 buildings were valued at EUR 887 mln at end-2008. The new deal follows an initial agreement signed in 2008 involving 155 buildings.

'This agreement illustrates a real estate partnership with France Télécom lasting several years and demonstrates Foncière des Régions' capacity in finding creative and valuable property solutions both for the lessee and the owner,' said Olivier Estève, managing director of FdR's Office Division.

The agreement centres on three areas: new leases, property sales and more flexibility. In the second half of 2009, FdR and France Télécom will conclude new leases for 8 buildings in the Paris region and in major cities throughout France. These assets were valuated at EUR 754 mln at year-end 2008. Furthermore, France Télécom has decided to purchase 65 properties, mostly outside Paris, for EUR 133 mln. At the term of the new leases, France Télécom will enjoy more flexibility and be able to reorganise technical premises and office spaces according to its needs.