French property firm Société de la Tour Eiffel (STE) has sold a portfolio consisting of three office properties to asset management group UFG for EUR 92mln. The French SIIC has disposed of Massy Campus 2, a 13,600 m[sup]2[/sup] fully-let office building in the southwestern suburbs of Paris close to Orly airport; the 13th floor at Tour Maine Montparnasse in Paris providing 1,750 m[sup]2[/sup] of space to be vacated and fully renovated prior to reletting; as well as nine floors within the Tour Crédit Lyonnais with a total 10,500 m[sup]2[/sup] of space. UFG is already a co-owner of the Tour Maine Montparnasse and the Tour Crédit Lyonnais buildings, STE said.
French property firm Société de la Tour Eiffel (STE) has sold a portfolio consisting of three office properties to asset management group UFG for EUR 92mln. The French SIIC has disposed of Massy Campus 2, a 13,600 m2 fully-let office building in the southwestern suburbs of Paris close to Orly airport; the 13th floor at Tour Maine Montparnasse in Paris providing 1,750 m2 of space to be vacated and fully renovated prior to reletting; as well as nine floors within the Tour Crédit Lyonnais with a total 10,500 m2 of space. UFG is already a co-owner of the Tour Maine Montparnasse and the Tour Crédit Lyonnais buildings, STE said.
STE said the disposal is expected to reduce the company's Loan To Value ratio to 53%. Proceeds will be partly used to finance the firm's development pipeline, including a 18,000 m2 green office building for Alstom in Massy and an adjacent plot of land with development potential for 80,000 m2 of office space. Total investment for these projects is estimated at EUR 380mln.
The overall deal was achieved slightly in excess of valuation with a substantial uplift for the Massy property compensating shortfalls on the older buildings where ongoing renovation works are reflected in the transaction price, STE noted.
STE was represented by Awon Asset Management and UFG by Colliers Sogetex.
