Mandarin Oriental has completed the purchase of
the freehold interest in the building housing Mandarin Oriental,
Paris and two prime street front retail units from Société
Foncière Lyonnaise for 290 million (US$388.9 million).
transaction was partly funded by new five-year 150 million
(US$201.1 million) debt facilities, with the balance from the
groups cash reserves.
Edouard Ettedgui, Mandarin Oriental Hotel 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.
is located on the prestigious Rue St Honoré, within walking
distance of the citys famous cultural attractions and world class
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 31 December
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