A consortium of French property investors including Primonial REIM, La Française and EDF Invest have agreed to buy the Shift office building in Paris from Unibail-Rodamco-Westfield (URW) for €620 mln.
The asset, which was acquired by URW in 1999, underwent a significant refurbishment last year. Following the revamp, it was fully let to Nestlé as its new French headquarters on a 12-year lease.
URW said that the disposal price represented a premium to the 30 June book value, and that the deal was expected to close in January 2021.
Shift is located in the business district of Issy-les-Moulineaux in the Paris region, and comprises a gross leasable area of 47,200 m2.
Originally designed by architectural firm Arte Charpentier, the property includes 4,400 m2 of terraces, balconies and loggias as well as 3,000 m2 of shared spaces.
URW said that the sale was part of its €9+ bn disposal plan to strengthen the group’s balance sheet, which includes €4 bn of sales earmarked for completion within 2021.
The sale brings URW's disposals since June 2018 to €5.3 bn, at an average net initial yield of 4.5% and an average premium above-book value of 5.6%.
In its recent half year results, URW was forced to devalue its portfolio by 5.1%, as its profits fell 27%.
