Unibail-Rodamco-Westfield (URW) has entered into an agreement with a consortium of French institutional investors (Primonial REIM, La Française and EDF Invest) to sell the Shift office building in Paris for €620 million.
Shift office building is located in the business district of Issy-les-Moulineaux (Paris region) with a GLA of 47,200 sqm. The 45,000 sqm of office property is fully let to Nestlé for its new French headquarters on a 12-year lease.
URW said the transaction is part of URW’s €9+ Bn RESET plan to strengthen the Group’s balance sheet and which includes €4 Bn of disposals to be completed by year-end 2021. ”Upon closing of this transaction, the Group will have generated €5.3 Bn of net disposal proceeds since June 2018, at an average net initial yield of 4.5% and an average premium above book value of 5.6%.”
This transaction is expected to close in January 2021.