Foncière des Régions buys EUR 102m offices, enters in 'exclusive talks' on Coeur d'Orly project

French property company Foncière des Régions has acquired from Eiffage a property portfolio worth some EUR 102 mln. The 109,000 m² portfolio consists primarily of offices and light industrial premises (75%) rented to Eiffage with firm nine-year leases. The remaining properties are leased to third parties. The assets generate an annual income of EUR 8.7 mln. A third of the assets are located in the Ile-de-France region, with the remainder in the French regions.

Under the terms of a partnership established as a part of the transaction, Eiffage will continue to outsource most of its operating property portfolio in France, while Foncière des Régions will take over the management of the assets. The deal is similar to other partnerships established by Foncière des Régions with its main tenants, including France Telecom, EDF and IBM.

In a statement, the company said that it plans to reduce the vacancy rate of the properties leased to third parties.

Additionally, the French firm announced that it has entered in 'exclusive negotiations' with Aéroports de Paris for the construction of the first phase of the Coeur d'Orly business district project. The project envisages the development of a 13.5-hectare business district which will include some 160,000 m² of offices, a conference centre, a four-star hotel and a commercial, services and entertainment centre for an estimated cost of EUR 400 mln (excluding hotel
and conference centre). Aéroports de Paris plans to co-invest half the amount in offices and shops while Foncière des Régions and its project partner Altarea would provide the remaining equity.