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Covivio — M&A Activity 2016
Apr 21, 2016
1222_iss_2016-04-21_72197970-10f1-47aa-bdf3-5d173049c8b3.pdf
M&A Activity
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PRESS RELEASE
Acquisition of an office complex let to Vinci in the heart of the Greater Paris region
Foncière des Régions has purchased the head office of the Vinci Group in the heart of one of the most dynamic business districts of Greater Paris, Rueil-sur-Seine in Rueil-Malmaison.
The offices complex is located next to the Rueil-Malmaison station of the RER (the Paris regional rapid transit system) and is visible from the A86 motorway. It currently comprises 36,000 m² of floor space split between three independent buildings, ideally located in the heart of Rueil-sur-Seine, and 978 car parks.
With 750,000 m² of office space occupied by over 180 companies, Rueil-sur-Seine is one of the most dynamic and attractive business poles in Greater Paris for large corporate groups to locate their premises.
With this investment (of around €129 million, rights included), Foncière des Régions has guaranteed rental income for 4 years (€10 million per year, representing an immediate yield of 7.8%). The group will take advantage of this period to define the redevelopment of the site to be implemented after the departure of the Vinci Group.
Foncière des Régions will thus deliver a new flexible and innovative building complex by 2022, corresponding to best market standards. This will improve asset quality and strengthen the group's exposure to an area popular with key accounts.
"With this acquisition, Foncière des Régions again illustrates its ability to position itself in complex real estate transactions, in which it can utilise its know-how as an integrated real estate operator to generate value over the duration of the project", emphasised Olivier Estève, Deputy General Manager of Foncière des Régions.
This move also strengthens the group's territorial coverage of the major services areas in Paris such as Saint-Denis (delivery of Green Corner in 2015), Levallois-Perret (acquisition of Oméga B at the end of 2015, development of the Thaïs complex under way), Issy-les-Moulineaux (redevelopment and extension of the Edo complex in progress) and Paris-Gare-de-Lyon (ongoing redevelopment of the Traversière complex). The attraction of these areas is characterised by their excellent rental income/quality relationship and very good road and public transport connections (Paris underground/RER).
Contacts
Press Relations Géraldine Lemoine Tel : + 33 (0)1 58 97 51 00 [email protected]
Investor Relations Paul Arkwright Tel : + 33 (0)1 58 97 51 85 [email protected]
Foncière des Régions, co-créateur d'histoires immobilières
As a key player in real estate, Foncière des Régions has built its growth and its portfolio on the key and characteristic value of partnership. With a total portfolio valued at €18Bn (€11Bn in group share), located in the high-growth markets of France, Germany and Italy, Foncière des Régions is now the recognised partner of companies and territories which it supports with its two-fold real estate strategy: adding value to existing urban property and designing buildings for the future.
Foncière des Régions mainly works alongside Key Accounts (Orange, Suez Environnement, EDF, Dassault Systèmes, Thales, Eiffage, etc) in the Offices market as well as being a pioneering and astute operator in the two other profitable sectors of the Residential market in Germany and Hotels in Europe.
Foncière des Régions shares are listed in the Euronext Paris A compartment (FR0000064578 - FDR), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100 indices, in the "EPRA" and "GPR 250" benchmark European real estate indices, and in the FTSE4 Good, DJSI World and Euronext Vigeo (World 120, Eurozone 120, Europe 120 et France 20) ethical indices. Foncière des Régions is rated BBB/Stable by Standard and Poor's.
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