SFL unwinds the Village Victor Hugo financing ahead of term

Société Foncière Lyonnaise (SFL) has reimbursed ahead of term the VVH Mandatory Convertible Bonds issued to Prédica and Pacifica (Crédit Agricole Goup), by converting the bonds into shares of SCA Village Victor Hugo (SCA VVH).

As a result of this operation, Prédica and Pacifica now have total control - through SCA VVH - over the 72,000 m² Village Victor Hugo estate, consisting mainly of residential properties located around Place Victor Hugo in the 16th district of Paris.

By unwinding the financing ahead of term, SFL has reduced its debt by € 275 million - corresponding to the issue value of the Mandatory Convertible Bonds - and significantly lowered tis loan-to-value ratio.

The transaction has no impact on SFL´s NAV or net profit since the operation is backdated to 1 January 2004.

Post reimbursement, and based on 31 December 2003 valuation, SFL´s property portfolio amounts to € 2.4 billion of which below 5% is now residential.

Source: SFL

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