URW announces sale of Gaîté-Montparnasse Office

Unibail-Rodamco-Westfield (ASX:URW) has agreed to sell the office component of the Gaîté-Montparnasse mixed-use complex in Paris, France, to a joint venture between Norges Bank Investment Management and Swiss Life Group for a Total Acquisition Cost of €172.5 Mn. The transaction reflects a 4% discount to the latest unaffected book value. The 12,500 sqm office space, fully let to Wojo, an Accor group coworking operator, was completed in 2022 as part of a major redevelopment which includes the URW owned and operated Les Ateliers Gaîté shopping centre, the refurbished Pullman Paris Montparnasse hotel, residential units, as well as community-oriented retail and amenities. The transaction is subject to standard conditions precedent and is expected to be completed during Q4- 2024. With this transaction, URW has now completed or secured €0.8 Bn of transactions in 2024, which will reduce the Group's proportionate net debt by the same amount. In addition, the Group remains engaged in active discussions with potential buyers on a further €0.6 Bn of disposals.

Executive Commentary on the Sale

This sale is in line with our strategic focus on optimizing our portfolio and strengthening our financial position. The sale of the office component of the Gaîté-Montparnasse complex allows us to realize value and reduce our net debt, which is consistent with our commitment to enhancing shareholder value and financial flexibility. We remain committed to actively managing our portfolio and pursuing opportunities that align with our long-term objectives.

Summary of URW Announcement

Unibail-Rodamco-Westfield (ASX:URW) has announced the sale of the office component of the Gaîté-Montparnasse mixed-use complex in Paris, France, to a joint venture for a Total Acquisition Cost of €172.5 Mn. The transaction reflects a 4% discount to the latest unaffected book value and is expected to be completed during Q4- 2024. This sale forms part of URW's strategy to optimize its portfolio and strengthen its financial position. With €0.8 Bn of transactions completed or secured in 2024, URW aims to reduce its proportionate net debt and is actively engaged in discussions for further disposals. The company remains committed to enhancing shareholder value and financial flexibility through strategic portfolio management.