Société de la Tour Eiffel (STE) has completed the acquisition of an office building on the outskirts of Paris for €23 mln. News of the deal coincided with the announcement by French insurance group SMABTP that it now controls just under 90% of the shares in the French REIT.
Société de la Tour Eiffel (STE) has completed the acquisition of an office building on the outskirts of Paris for €23 mln. News of the deal coincided with the announcement by French insurance group SMABTP that it now controls just under 90% of the shares in the French REIT.
STE's acquisition of the 8,300 m2 office building located in the Bagneux district fits in with the company's strategy of disposing of certain assets to refocus its portfolio on the Paris region. The office building is fully let to Orange for a period of over nine years. The rental income of €1.9 mln generates an initial yield of 7.6%.
Assets located in the Paris region now represent close to 75% of STE's portfolio by value based on the valuation at end-June 2014.
Separarely, SMABTP said it now owns 5.6 milllion STE shares, representing 89.88% of the company's share capital and voting rights. During the first seven months of 2014 SMABTP battled with French-Vietnamese investor Chuc Hoang for control of STE.
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