SFL Signs an Agreement to Sell the Mandarin Oriental Building

  SFL Signs an Agreement to Sell the Mandarin Oriental Building

Business Wire

PARIS -- November 29, 2012

Regulatory News:

Société Foncière Lyonnaise (Paris:FLY) has signed an agreement with the
Mandarin Oriental Hotel Group (Paris) for the sale of the building at 251 rue
Saint-Honoré (Paris 1) that is occupied by the Mandarin Oriental Paris hotel
and two luxury boutiques, Ports 1961 and Dsquared2.

The sale, which is subject to approval by the buyer’s shareholders and to the
Paris City’s waiver of its preemption right, should be completed no later than
15 February. The net sale proceeds will amount to €290 million, representing a
significant capital gain for SFL.

This exceptional transaction in the heart of Paris is a further demonstration
of SFL’s unique skill in creating value by enhancing its properties.

Full details of the transaction will be published as soon as the sale is
confirmed.

Bertrand Julien-Laferrière, Chief Executive Officer of Société Foncière
Lyonnaise, expressed his satisfaction with the agreement, stating that the
Mandarin Oriental Group was the buyer best able to guarantee the enduring
success of this luxury hotel and contribute to developing the French capital’s
appeal as a business centre and tourist destination.

The proceeds from this sale and from the recent €500 million bond issue
provide SFL with significant resources to finance its growth and consolidate
its position as the leading player in Paris’s prime commercial property
market.

With an exceptional portfolio of properties valued at €3.4 billion including
transfer costs, essentially located in the Paris Central Business District,
SFL is a preferred vehicle for investors wishing to invest in the Paris office
and retail property market. As the leading player in this market, the Group is
firmly focused on pro-actively managing high-quality property assets. SFL has
elected to be taxed as an SIIC since 2003.

STOCK MARKET:

Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg:
FLY FP – Reuters: FLYP PA

S&P RATING: BBB- /A-3 Stable outlook

www.fonciere-lyonnaise.com

Contact:

SFL
Nicolas Reynaud, + 33 (0)1 42 97 01 65
n.reynaud@fonciere-lyonnaise.com
or
Media contact:
INFLUENCES
Catherine Meddahi, +33 (0)1 44 82 67 07
c.meddahi@agence-influences.fr