Compagnie De Suez finalizes sale of real estate portfolio.PARIS--(BUSINESS WIRE)--Jan. 27, 1997-- -- Net Real Estate Position Reduced to FRF FRF The ISO 4217 currency code for the French Franc. 4.9 billion, Cut by 84% in Three Years -- Credisuez, a unit of Compagnie de Suez, and the Whitehall Street Real Estate Limited Partnership VII, a fund managed by Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , have finalized an agreement for the fund to acquire Credisuez's portfolio of loans to real estate professionals and all its own property development projects. The portfolio has an estimated value of FRF 4 billion (approximately $727 million), net of provisions. The transaction, which was carried out under the initially proposed conditions, will result in Compagnie de Suez recording a capital loss of FRF 1 billion it its 1996 financial statements. The entire price of the sale will be paid in cash. Additionally, Compagnie de Suez has created a property trust to manage its remaining owned real estate assets. These assets, 90% of which are occupied under rental leases Rental lease See: Full-service lease , represent a net value of FRF 3.1 billion. They are mainly located in Paris and carry a gross of rental yield of 7.5%. After the sale to Whitehall and the creation of the property trust, Suez has reduced its net real estate position to FRF 4.9 billion, from FRF 14.1 billion on January 1, 1996. In three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time net real estate position has been reduced by 84% from the FRF 30.2 billion held as of December 31, 1993. The remaining assets are scheduled for "piecemeal" divestment divestment to strip one's investment from an entity. by 2001. The impact of the company's real estate exposure on 1996 results is expected to total FRF 2.5 billion. Net income estimated at FRF 800 million for 1996 After taking FRF 500 million in reserves on the Axa-UAP investment and the impact of real estate exposure, Compagnie de Suez expects to report consolidated net income of approximately FRF 800 million in 1996, compared with a loss of FRF 3.9 billion in 1995. The return to profit was driven by a 25% increase in consolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and by the capital gains realized as part of the strategic refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus program. In 1997, Compagnie de Suez will carry on with the development of its two core businesses: utilities and public infrastructure and retail financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . CONTACTS: Compagnie de Suez Press: Michele MEYZIE, 33.1.40.06.64.25 Investors: Josette JOLIBOIS, 33.1.40.06.64.93 Eric TAUPIN, 33.1.40.06.64.84 or Morgen-Walke Associates Investors: Lynn Morgen/Betsy Brod/Jeff Majtyka Press: Terry Rooney/Brian Maddox 212/850-5600 |
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