By on April 3, 2012

GM’s new partner PSA Peugeot Citroen needs more cash. To raise money, PSA sells its headquarters building in Paris and will turn into a renter. Signing GM as a new 7 percent partner apparently hasn’t improved PSA Peugeot Citroen’s cash position. Au contrair, PSA’s credit rating had gone to junk.

PSA told Reuters that it will sell its head office building in the fashionable 16th arrondissement in Paris to institutional fund manager Caisse de depot et placement du Quebec for 245.5 million euros ($326.54 million) as part of a property disposal plan announced in February.

The building is said to have 540,000 sq ft, PSA will lease back the high rent building under a renewable nine-year lease,.

 

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2 Comments on “PSA Peugeot Citroen Liquidates Own Headquarters...”


  • avatar
    obruni

    this kind of thing happens all the time. Its not clear what PSA’s lease payments are, but €240mm is a princely sum for an office building.

  • avatar
    analoca

    I guess this has nothing to do with GM and the 7% stake. Sale & lease back is a very common practice of most corporations irrespective of their financial health, as besides serving to raise cash, it uses to have some fiscal benefits…

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