Published on : Monday, February 11, 2013
Mandarin Oriental Hotel Group announced today that it has completed the purchase of the freehold interest in the building housing Mandarin Oriental, Paris and two prime street front retail units (collectively, the ‘Property’) from Société Foncière Lyonnaise for €290 million (US$388.9 million).
The transaction was partly funded by new five-year €150 million (US$201.1 million) debt facilities, with the balance from the Group’s cash reserves.
Edouard Ettedgui, Group Chief Executive, said “This transaction has provided our Group with a rare opportunity to own a prime piece of real estate in a key gateway city which is an important destination for our luxury brand. The acquisition is expected to be earnings enhancing and to bring a number of additional benefits including single ownership and the opportunity for future expansion for the hotel.”
The Property is located on the prestigious Rue St Honoré, within walking distance of the city’s famous cultural attractions and world class retail.
The Property has a net lettable floor area of approximately 17,400 sq. m., and had rental income of €10.7 million (US$14.3 million) for the 12 months ended 31st December 2012.