Unibail-Rodamco-Westfield plans to sell the Majunga Tower in Paris' La Défense district early in the new year, EuroProperty has learned.
The 195 metre-high state-of-the-art office tower is expected to fetch a price of around €700-€800 mln which would represent an initial yield in the low 4% range, according to well informed sources.
URW has been selling offices partly to raise cash for investing in its regional mall developments while simultaneously keeping a lid on gearing. Europe's largest REIT completed the disposal of Capital 8 in Paris to Invesco’s flagship Real Estate European Fund for €789 mln in November.
On Thursday, URW said it had also completed the disposal of the Skylight and Lumen office buildings in Warsaw, first announced in October, to Globalworth Poland for a total €190 mln.
Since end-June, the group has disposed of 10 assets, representing a total net disposal price of €2 bn, at a blended net initial yield of 4.6% and with a weighted average premium of 8.4% to the June 30, 2018 book value.
With the planned sale of Majunga, it is thought URW also wants to be in the front of the queue next year as a number of large office assets in Paris will be coming to the market. In January, for example, fellow Paris-listed REIT Icade is expected to launch the marketing ofits Tour Eqho, a 140 metre, 40-storey tower also located in La Défense with 78,974 m2 of space.
Majunga Tower’s main tenants are French insurance giant AXA and accountancy firm Deloitte. In total, the office tower comprises 65,600 m2 and 270 parking spaces. Built in
2014, it has an Excellent BREEAM In-Use rating.
This article first appeared in EuroProperty, PropertyEU's weekly sister publication.
