STE has signed an agreement with Orion Eleventh Immobilien Gmbh to acquire Locafimo, a property company with a mixed commercial portfolio of some 294 000 m² valued at € 300 million.
This transaction is in line with the STE’s strategic business plan and increases gross assets from € 413 to over € 700
million, enabling the company to surpass its current investment target.
Locafinancière will adopt SIIC status during 2006.
With a geographical diversity between Paris, the suburbs and the Provinces, the portfolio breaks down as follows:
Office properties - 16
Business parks - 10
Warehouses - 9
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Total 35
The current occupancy rate is 92.5%, and the initial blended yield 7.5%, predicated on € 22 million per annum of rent.
The portfolio dovetails neatly into the company’s existing asset base, enabling the company to acquire for the first time central Paris offices on
an acceptable basis.
The Provincial office Parks reflect the company’s strategy of responding to the growing service sector economy in the Regions.
The warehouses complement the existing Post Office sorting centres acquired in early 2004.
With some 450 tenants the portfolio offers a high degree of income security and significant potential for value creation through active asset management. An early disposal of non-strategic assets is to be envisaged.
The successful completion of the transaction confirms the company’s ability to source sophisticated “off market” transactions fired by the fiscal competitivity of its SIIC status.
A capital increase is projected to finance the purchase alongside mortgage debt.
The deal was negotiated on behalf of STE by Awon Asset Management which was advised by Degroux Brugère & Associés, Lacourte Balas &
Associés, IXIS CIB and financed by the Royal Bank of Scotland et Hypo Real Estate.
Orion, the vendor, was advised by Clifford Chance and Jones Day.
Press Office – Teymour Greco
Contact : Solenne Marquet
Tél. +33 (0)1 55 34 09 09
solennemarquet@teymour.fr
Société de la Tour Eiffel
Tél. +33 (0)1 53 43 07 06
Mark Inch - President
mark.inch@societetoureiffel.com
Robert Waterland – Managing Director
robert.waterland@societetoureiffel.com
