Lone Star has put its Coeur Défense office complex in Paris up for sale for €1.8bn (£1.6m).
The private equity firm has appointed Rothschild, Morgan Stanley and JLL to find a buyer for the 1.9m sq ft building. The asking price reflects a yield of between 5% and 5.5%. The company is looking to undertake a refinance ahead of a sale, which will take place after the French election in May.
Coeur Défense is around 20% vacant. Its biggest tenant is HSBC, which occupies around 500,000 sq ft.
The giant office has been under Lone Star’s control since 2014 when it bought the building from Lehman Brothers in a €1.3bn deal. The asset had become distressed after its valuation fell substantially below the €1.6bn of debt held against it, which included a CMBS issued by Goldman Sachs.
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