Fonciere des Regions sells to France Telecom

Leading French property company Fonciere des Regions has signed an agreement with its largest tenant, France Telecom, regarding the sale and lease of some 155 properties in France.

The company said on Wednesday it has sold a portfolio comprising 58 assets for a total EUR 231.5mln, of which some EUR 136mln worth of assets were transferred at the end of March. The sale is in line with FDR's EUR 1bn disposal plan for the 2008 year, FDR said in a statement. Under the terms of Wednesday's agreement, France Telecom will also have the option to buy other 13 properties that it currently occupies, while FDR will have the right to consider future redevelopment of the assets in the event these will be vacated after the expiration of the lease term in 2014.

Additionally, the company said it signed lease agreements with France Telecom for 84 newly-built assets. The agreement follows discussions carried out in 2007, FDR said, which led to the transfer last year of 11 assets to France Telecom and the signing of 20 new leases with a nine-year term.

The company, which on Wednesday released its first quarter results, has sold EUR 567mln of properties this year, while its Italian subsidiary Beni Stabili has carried out another EUR 119mln worth of disposals.