has inked a deal with a consortium of French institutional investors (Primonial REIM, La Française and EDF Invest) for the sale of its SHiFT office building for €620 million.
The price represents a premium to the June 30, 2020, book value.
SHiFT is located in the business district of Issy-les-Moulineaux (Paris region) with a Gross Lettable Area of 47,200 square metres. The property is fully let to Nestlé for its new French headquarters on a 12-year lease.
The transaction is part of URW’s €9 plus billion reset plan to strengthen the Group’s balance sheet which includes €4 billion of disposals to be completed by year-end 2021. Upon closing of this deal, the group will have generated €5.3 billion of net disposal proceeds since June 2018, at an average net initial yield of 4.5 per cent and an average premium above book value of 5.6 per cent.
Shares in Unibail-Rodamco-Westfield (ASX:URW)
are trading 2.9 per cent higher at $2.89.