Gecina offloads EUR 444m of housing assets

French real estate investment trust Gecina has announced the sale of two residential portfolios for a total of EUR 444 mln.

Paris-listed Gecina said it has signed a preliminary agreement with an unnamed French institutional group to sell 10 residential buildings in Paris and the Inner Rim for EUR 395 mln (excluding duties). The sales price represents a 0.7% premium to the appraised value at end-June 2011.

In addition, Gecina has divested a residential building in Lyon for EUR 49 mln (excluding duties), representing a 19.4% premium to the asset's value at end-June, 2011.

The company also said it is in an 'advanced negotiation stage' regarding the disposal of a further two assets for a combined price of EUR 55 mln. If completed, the sale would enable Gecina to achieve its EUR 500 mln target for housing portfolio sales.

Gecina's sales are aimed at increasing its financial flexibility. Last month, the office-focused REIT closed roughly EUR 209 mln worth of sales, reflecting a net exit cap rate of 5.5%. The divestments involved four office schemes totalling 27,000 m² in Paris.