SFL to take 30% of Siic de Paris in EUR 286m deal

Société Foncière Lyonnaise (SFL), the French real estate company controlled by Spain's Colonial Inmobiliaria, is to take a 30% stake in Siic de Paris. The transaction value amounts to roughly EUR 286 mln.

SFL has signed an agreement with Siic de Paris to acquire the stake in exchange for two office towers at La Defense. Siic de Paris is the French property arm of Spanish group Realia Patrimonio.

The exclusive negotiations were first revealed in October.

Siic de Paris is holding an extraordinary shareholder meeting on 27 December to vote on the transaction. As part of the agreement, the company will issue 15.5 million new shares to be subscribed by SFL at a price of EUR 18.48 per share. SFL is paying for the stake with two properties comprising a total of 48,000 m² of space.

Following the operation, Realia Patrimonio's interest in Siic de Paris will be less than the 60% threshold envisioned for French real estate investment trusts. Realia Patrimonio and SFL said they also intend to sign a shareholder accord which will grant them control of Siic de Paris.

'This operation is a key step for Siic de Paris which reaches three main objectives: la consolidation of its positioning in Paris real estate office sector, the strengthening of its capital structure and the preservation of its Siic status,' said Jorge Sanz, managing director of Siic de Paris.

The completion of the transaction is conditional upon approval by the French stock market regulator AMF to relieve SFL from launching a compulsory bid for Siic de Paris.

JP Morgan advised SIIC de Paris while Lazard acted for SFL.