SFL, the benchmark in the Paris prime commercial property market, has sold the 9 avenue Percier building in Paris’ 8th arrondissement to Deka Immobilien, for €143.5m excluding transfer costs. The Art Deco building, comprising 6,300m² of rental space, was acquired by SFL from Eurosic in 2015 for €67.6m including transfer costs. Over the next four years, (2016-2019) extensive work was undertaken by SFL to redevelop the building and enhance its market value, leading to a 13% IRR on a 6 years period.
“This transaction attests to our teams’ ability to create value through carefully targeted work to reposition the Company’s assets and take advantage of the resilient prices commanded by the French capital’s best prime properties despite the Covid-19 crisis,” said Dimitri Boulte, SFL's Managing Director, adding that: “Having completed our repositioning work, we decided that the time was right to cash in the value created on this medium-sized building ideally located in the centre of Paris’ 8th arrondissement, which represented a poor strategic fit with our portfolio of major business centres.”
