Foncière des Régions (FdR) has signed an agreement to sell a 25% stake in the Tour CB21 with an unnamed French institutional investor. The EUR 147 mln transaction, which will be completed by the year end, represents one of the largest single investments so far this year in the Paris region office market, which is currently seeing a resurgence of large deals.
Foncière des Régions (FdR) has signed an agreement to sell a 25% stake in the Tour CB21 with an unnamed French institutional investor. The EUR 147 mln transaction, which will be completed by the year end, represents one of the largest single investments so far this year in the Paris region office market, which is currently seeing a resurgence of large deals.
The deal values the property at EUR 588 mln, and annual net rental income is estimated at EUR 34 mln. Although the companies agreed not to disclose the name of the buyer, a FdR spokesperson said on Friday that the buyer is a major insurance company. The deal reflects an initial yield of 5.78%.
In a press statement, the Paris-listed company said the transaction is in line with its plan following the acquisition in 2007 to seek a partner for the property. 'This partnership with a top French investor is a positive signal for the La Défense real estate market and a sign of confidence in the quality of the real estate project undertaken by Foncière des Régions staff,' said FdR CEO Christophe Kullmann.
Two thirds of the Tour CB 21, which was delivered in July 2010, is rented by Suez Environnement, with a 10-year lease for 44,000 m2. In France, it is the first BREEAM-certified tower, a standard that measures the environmental quality of buildings.
