X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

PARIS-French REIT Foncière des Régions has added five Paris office assets worth €267 million to its portfolio in a stock and warrants-only deal with insurance groups Groupama and Predica, bringing the former for the first time into its senior shareholder base. The group will subsequently offer existing shareholders warrants for €200 million in equity at similar terms.

The deal, which will be submitted for approval by shareholders on 15 December, will be paid by the issue of 3.9 million new FdR shares, of which 1.9m will be issued at a price of €70 for Predica, and 2 million at €65 for Groupama. The deal will thus simultaneously boost FdR equity by €267 million. In addition, however, the group will offer bonus subscription rights to current shareholders to subscribe up to €200 million new shares at similar terms.

“This transaction will let Foncière des Régions grow the quality of its assets as well as boost shareholders’ equity at an opportune time in the real estate cycle,” commented FdR CEO Christophe Kullmann.

The assets comprise five high-quality office buildings in Paris totalling 41,600 square meters – with three representing 74% of portfolio value – plus one 11,290-square-meter asset at Issy-les-Moulineaux, and one smaller asset in Lyon. The overall portfolio yields an average 7%, with residual firm-lease duration of 3.2 years, vacancy rate of 3% and a €459 square meter per annum of rents, in line with market values. “This acquisition allows Foncière des Régions to strengthen its presence in key office markets in Ile-de-France, and to continue diversifying its rental base with large companies such as SNCF and Cisco,” said FdR’s Olivier Estève.

The bonus equity warrants for holders of Fonciere des Régions shares will be offered between 1 January 2010 and at least 31 December under terms similar to €65 per share in the acquisition. One equity warrant will be allocated for each Foncière des Régions share, and 15 will confer the right to buy one new Foncière des Régions share.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.