Accor Acquires Paris Head Office Building [Download Chain Report]
French hotel giant Accor has finalised the acquisition of its head office building in the southwest of Paris. A 12 year lease on the building was announced in 2015, but the completion of the purchase happened at the end of October. We find out more.
Accor buys Sequana Tower
Paris’ Sequana Tower is located in the southwest of the city in a commercially zoned area. A Class A office building, Accor’s head offices have been located in the tower since 2016, and the hotel company initially signed a lease agreement with international real estate firm Hines for a long lease of 12 years, which was to begin in January 2016 and has a call option included in the terms.
At the time the lease was signed in 2015, the tower was valued at €363m. Its current valuation would stand at more than €500m, but because of the 2015 agreement, Accor was able to finalise the acquisition at the 2015 price. At the time of the signing of the lease, Xavier Musseau, managing director of Hines France, said, “The lease signed by AccorHotels in Sequana Tower marks a significant step forward for Hines France. In 2015, in a real estate market that has been characterized by the absence of large transactions, we are pleased to have secured this major transaction which enables us to create value for our investors by the signature of a long-term lease.”
The acquisition will be executed with the help of a Green Mortgage loan from Credit Agricole CIB, who acted as a Green Structuring Agent and lender. The transaction is financed by an €300m eight year loan that has been established in line with Green Loan Principles, seeing as the tower has been rated “Excellent” by HQE Certification, making it a highly sustainable and ecological building. The outstanding sum of the acquisition price was paid in cash, with an estimated saving of approximately €20m per year coming from rental rates.
― Best Stories for you ―