SFL to sell Paris hotel to operator for EUR 290m

French REIT Société Foncière Lyonnaise (SFL) is selling a hotel property to the operator in the heart of Paris. The net sale proceeds will come to EUR 290 mln.

SFL announced that it has signed an agreement to sell the property at 251 rue Saint-Honoré to the Oriental Hotel Group. The transaction is subject to approval by Mandarin's shareholders and the Paris authorities. It is expected to close by the end of the first quarter of 2013.

The building is occupied by the hotel and two luxury boutiques.

SFL said the combination of proceeds of the sale and a recent EUR 500 bond issue will provide it with the resources to position itself as a leading player in the French capital's prime commercial property market.