Spanish group wins €759m French property deal

Spanish real estate company Inmobiliaria Colonial has taken a €759m controlling interest in French property group Societe Fonciere Lyonnaise (SFL).

The deal is seen as significant as SFL represents the last available big French property firm.

Colonial said it would acquire 55.6% of the Paris-based firm from controlling shareholders, which include Aviva, Exor, Grosvenor and Societe Generale.

The Spanish group said it would make a €38-per-share cash offer for the outstanding shares, valuing SFL at €1.64bn, including €262m of convertible bonds.

Colonial said SFL would more than double its size, increasing asset value from €2.6bn to €5.1bn.

France will become its biggest market, with 57% of its combined assets in Paris, against 25% in Barcelona and 18% in Madrid.

Colonial will then control some of Paris's most prestigious office and retail buildings, including Galerie des Champs-Elysees, Washington Plaza and the Louvre business centre.