Dutch listed property company Wereldhave has sold its remaining office building in Paris for total net proceeds of €50 mln.
Dutch listed property company Wereldhave has sold its remaining office building in Paris for total net proceeds of €50 mln.
Wereldhave said it ‘capitalised on the vibrant Paris investment market’ to sell Le Cap, located in Saint Denis, marking the company’s exit from the French office market.
The sale price of €50 mln is €5.9 mln or 13.4% above the book value at end-2014, and €3.4 mln or 7.3% above the book value as at end-June this year. It represents a net exit yield of 5.6%.
The transaction brings Wereldhave's divestment volume for 2015 to the mid-point of the targeted range of €350–450 mln and secures the targeted year-end LTV below 40%.
Net proceeds from the disposal in 2015 of Wereldhave’s three French office buildings were €20.2 mln higher than the book value as at end-2014.
Wereldhave's retreat from the office sector goes hand-in-hand with its strategic focus on dominant but mid-sized shopping centres in larger provincial cities in the northwest continental Europe. During the summer Wereldhave completed the acquisition of nine shopping centres in the Netherlands from Paris-listed Klépierre for €770 mln. Klépierre, which focuses on larger centres, inherited the nine assets as part of its takeover of Amsterdam-listed Corio.