Europe’s top office REIT has taken two large office buildings, in Paris and Lyon, off the market after receiving disappointing offers for them, PropertyEU has learned.
Sources said that Gecina has withdrawn City 2 in Paris and Sky 56 in Lyon from sale. However, the property company is still in discussions over a potential disposal of a third large asset, Octant-Sextant in Paris Levallois.
The most valuable of the three is 28,500 m2 City 2, which accounts for about 40% of the 80,000 m2 CityLights complex in Boulogne-Billancourt, next to the Pont de Sèvres metro station in western Paris.
Gecina put the City 2 tower on the market in Q3 2020 after Allianz Real Estate paid €500 mln to acquire City 1 and City 3 which account for the other 60% of CityLights. It was the largest office transaction that Allianz has closed in Europe.
Allianz bought the two towers from BNP Paribas Cardif which acquired them from sister company and redeveloper of the complex BNP Paribas Real Estate, in 2014. Gecina bought City 2 from BNP PRE in 2015 for €188 mln.
The second withdrawn building, 30,800 m2 Sky 65, was completed two years ago at 128 avenue Félix Faure in France’s second city. It is located at the southern gateway to Lyon’s Part-Dieu business district with about half let to telecoms corporate Orange.
It is thought Gecina was seeking more than €200 mln for the 14-storey, curved building but has now decided to keep the asset after interest did not match the REIT's expectations.
Gecina is believed to be looking for a €200 mln-plus price in its ongoing discussion to sell a third asset, Octant-Sextant.
Comprising 36,500 m2, the property was redeveloped in 2018 and is located at 2-4 Quai Charles Pasqua in Levallois-Perret on the north-west side of the capital.
Gecina owns, manages and develops properties worth €20 bn, 82% of which are offices.
