The sale of the 77 avenue des Champs-Elysées property agreed on 31 March 2003 has now been completed. Located in the 8th arrondissement of Paris, the property has a lettable area of some 1,700 square meters, comprising retail, office and residential space. The buyer is a Danish investor.
The sale price of €24,500,000,- excluding transfer costs, is some 5% above the
year-end valuation, and will add approximately €3 million to 2004 consolidated net
profit. The vendor was advised by Soprec and Philippe Pelletier (from the Lefevre Pelletier et Associés law firm). The buyer was advised by Cushman & Wakefield and
represented by Dan Schefet.
In accordance with the agreement signed with Sophia on 27 February, SFL last month completed the acquisition of three office buildings. One of the office properties is located in the 2nd arrondissement of Paris in the financial district. The second is in the 12th arrondissement close to the Gare Lyon, SFL has also taken over the financial lease of the property. The third is the Coface building at La Défense. The transaction represents a total investment of € 534.1 million, including transfer costs.
The properties represent a total area surface of 77,000 m², all fully let. They generate annual rental revenues of € 36 million and the net yield is in excess of 6.75% on a full year basis. To finance the acquisitions, as well as taking over an existing financial lease, SFL has drawn on its available cash reserves and financial authorizations, raising the loan-to-value ratio to around 43%. At the same time, the value of the property portfolio has increased to nearly € 2.8 billion.
In view of the favorable financing terms, the acquisitions are expected to lead to more than 10% growth in current cash flow in 2004, compared to 2003.