SCBSM Acquires Building on Rue du Louvre, Expanding Portfolio by Over 20%
Paris-based real estate company SCBSM has announced the acquisition of the building at 34-36 Rue du Louvre and 112 Rue Saint-Honoré, located in the 1st arrondissement of Paris. This transaction represents an increase of over 20% in the total value of the group's assets, which will exceed €550 million by the end of the fiscal year.
Historic Building with Prestigious Location
The Saint Frères building, constructed at the end of the 19th century, benefits from dual exposure on Rue du Louvre and Rue Saint-Honoré, offering visibility, accessibility, and prestige in the heart of a district where similar assets are rare. Characterized by its Eiffel-type structure, it is an iconic piece of the Parisian urban landscape. The acquisition is in line with SCBSM's investments over the past five years, focused on prestigious addresses such as Boulevard des Capucines, Boulevard Haussmann, Boulevard des Italiens, and Avenue de l'Opéra. This positioning meets the expectations of occupants looking for a recognized and immediately identifiable address.
Substantial Space Meeting Modern Standards
The property encompasses approximately 8,200 square meters, with 6,600 square meters above ground, providing volumes and a configuration suited to the current standards of major users. Originally designed as a corporate headquarters, the building offers optimized functionality and logistics. It houses top-tier tenants, enhancing the group's rental profile. SCBSM plans a value-enhancement program similar to those already implemented in its other properties, aimed at restoring the asset's historical charm while improving usability and energy performance in accordance with the tertiary decree.
Partially Financed by a Seven-Year Bank Loan
The transaction is partially financed by a seven-year bank loan of €78.5 million from Banque Européenne du Crédit Mutuel and BNP Paribas. The estimated loan-to-value (LTV) ratio remains below 50% following this acquisition, indicating a manageable level of debt. Full-year rents are now estimated at over €25 million, while the group's assets will exceed €550 million by the end of the fiscal year, with nearly 95% of assets in 'Paris QCA'. SCBSM has a potential liquidity reserve through the disposal of assets outside Paris, valued at €30 million by the end of 2025, whose gradual sales will help accelerate future debt reduction.
