
Mandarin Oriental completes the purchase of property on Rue St Honore in Paris.
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.“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,” states Chief Executive, Mandarin Oriental Hotel Group, Edouard Ettedgui. “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 transaction was partly funded by new five-year €150 million debt facilities, with the balance from the group’s cash reserves.The property is located on the prestigious Rue St Honoré, within walking distance of the city’s famous tourist attractions and shopping precincts.The five star rated property, which opened in June 2011, has a net lettable floor area of approximately 17,400 m², and a rental income of €10.7 million for the entire year 2012.
