Bail Investissement & GE to Acquire $1.9 Billion France Telecom Portfolio

PRNewswire-FirstCall - November 28, 2005

Bail Investissement, a Fonciere des Regions subsidiary, has approved the acquisition from the CGW consortium (Ixis, Whitehall and GE Real Estate) of Technical SAS, owner of a large portfolio of mixed use offices and light industrial properties leased to France Telecom.

A memorandum of understanding has been signed with CGW for the acquisition of Technical's entire capital. The properties in the portfolio represent a total of 1,034,000 square metres and are valued at EUR1.6 billion ($1.9 billion). They are leased to France Telecom under a lease expiring in 2011 at an annual rent of EUR124 million as of 31 December 2005, nearly half of which coming from Paris. The transaction is part of an investment policy that gives priority to teaming up with other investors to acquire property portfolios leased to first class covenants.

Bail Investissement and GE will sign a memorandum of understanding to enable GE to retain an interest in the portfolio. To this end, GE Real Estate France will purchase mandatory convertible bonds issued by Technical, which will eventually give it a direct stake of 32.5%. Technical's debt will be refinanced through a new EUR950 million bank loan. Sphere: Related Content