An excellent marketing year for SFL in 2012
PARIS -- January 16, 2013
The new lease with Misys for 6,500sq.m in the Washington Plaza signed at the
end of December put the finishing touch to an exceptional year for SFL
(Paris:FLY) in terms of rental activity. With leases on 37,000sq.m signed in
the past 12 months, including new leases on 24,000sq.m, SFL enjoyed its best
marketing performance for five years, and added blue-chip companies to its
tenant base, such as Misys, SJ Berwin, Moneygram, Simon Kucher, GE Energy or
Rents reached excellent levels in 2012, with nominal office rents averaging
€688/sq.m and effective rents at an average €636/sq.m.
SFL is the first property company to act with complete transparency in
disclosing rental incentives and detailing effective rents for new leases.
With the current financial climate driving up the value of incentives offered
to new tenants, the gap between nominal and effective rents is widening and
actual market values are increasingly unclear.
SFL’s strong rental activity in 2012 comes on the heels of a good year in
2011, when the Company let 18,800sq.m of offices for an average effective
rent of €562/sq.m (average nominal rent of €648/sq.m). These results confirm
the good performance and resilience of the prime office property market in
Paris, especially for 1,500sq.m to 3,000sq.m office spaces in upscale
complexes in Paris's Central Business District that offer a comprehensive
range of facilities and amenities.
They also illustrate the increasing trend for companies to move back into
Paris from La Défense or the suburbs, encouraged by the draws of a central
location, good public transport links, proximity to decision-making centres
and a high quality urban working environment.
Notwithstanding the uncertain economic environment in France, Chief Operating
Officer Dimitri Boulte expects rents to hold up in 2013 for offices in the
Central Business District that meet high international standards, due to the
limited availability of this type of property, and the importance placed on
working conditions and employee productivity by companies with a strong front
office presence. “The inherent value of offices and the impact of working
environments on team motivation and performance is becoming a key issue for
companies, and is increasingly a determining factor in their choice of
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.
Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg:
FLY FP – Reuters: FLYP PA
S&P RATING: BBB- /A-3 Stable outlook
Nicolas Reynaud, + 33 (0)1 42 97 01 65
Catherine Meddahi, +33 (0)1 44 82 67 07
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