The property has a net lettable floor area of approximately 17,400 sq. m., and had rental income of 10.7 million euros (US$14.3 million) for the 12 months ended 31st December 2012.
HONG KONG – Mandarin Oriental Hotel Group announced 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 Societe Fonciere Lyonnaise for 290 million euros(US$388.9 million).
The transaction was partly funded by new five-year 150 million euros (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 Honore, 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 euros (US$14.3 million) for the 12 months ended 31st December 2012.
