Morgan Stanley looks for buyers for its 76.7% stake in Compagnie la Lucette
Morgan Stanley is looking to sell its French REIT Compagnie la Lucette.
The US investment bank’s MSREF fund owns a 76.7% stake in the vehicle, which has a market capitalisation of €985.2m. Sources believe Morgan Stanley could sell its stake for more than €2bn.
The sale is believed to have been prompted by the French senate’s recent changes to France’s Société d’Investissement Immobilier Cotée (SIIC). The SIIC 4 amendment, which will take effect in January 2009, rules that shareholders cannot own more than 60% of the share capital and that SIICs must have a freefloat of at least 15%.
The amendment was seen as a clampdown on foreign ownership of SIIC vehicles and as a threat to their tax status. In its 2006 annual report, Compagnie la Lucette said the law change could force it to look at its shareholder structure before the end of next year.
Compagnie la Lucette owns more than 40 properties, mainly offices and warehouses, covering 746,000 m2. Most of those assets are in the Île-de-France area. According to last year’s company’s annual report, it has a property portfolio worth €2.1bn, having made acquisitions totalling €1.8bn in 2006.
Morgan Stanley bought Mines de la Lucette in 2005 as a shell company for €22m. Earlier this year, its board of directors agreed to rename the Euronext-listed company as Compagnie la Lucette.
