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14 February 2012
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22 February 2012
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03-04 May 2012
Vienna, Austria
French FdR deal with France Télécom includes e133m asset sales
French SIIC Foncière des Régions has signed an agreement with its largest single tenant, France Télécom, for the latter to take longer leases for 108 buildings and to purchase 65 properties from FdR for e133m. The deal marks the latest step in FdR's 2010 action plan. The result is to extend lease terms and increase security in rental cash-flows, and it also implies that the annual asset sales target of e500m will be exceeded, FdR said. The extended leases cover properties valued at e754m at year-end 2008 for an annualised rent of e65m, giving a current yield of 8.6%. Average new term is seven years firm, versus two-year residual terms across the portfolio previously. (Details in PFE 127, due for publication on Monday 29 June)