Gecina sells Paris office asset for EUR 98m

French real estate group Gecina has announced the disposal of a 92,000m² office building located at 2 avenue Gay Lussac in Saint Quentin en Yvelines in Paris' second periphery, for a total of EUR 98 mln.

The building is leased in full to the Thalès Group.

Gecina said that the group has successfully carried out EUR 226 mln of disposals in the first half of the year, despite 'tight' market conditions. Further disposals are in the works and Gecina expects to exceed the upper range for its initial target of between EUR 600-700 mln for the full year 2009.

'The disposals that have been carried out and are currently being completed concern assets which Gecina considers to be no longer compliant with its strategy, notably on account of their size or location,' Gecina said.

Gecina also said it had nearly EUR 300 mln in undrawn credit lines and immediately available facilities. 'In light of the forecasts for disposals, with over EUR 700 mln in 2009, the group will reduce its debt and have the cash required, even without using any new sources of financing, to cover all of its repayments in 2009 and 2010,' the company said.