PSA Peugeot Citroen, Europe’s second biggest carmaker, signed an agreement to sell its 48-year-old headquarters in Paris as part of a broader effort to raise cash and decrease its growing debt pile.
The office, located about 700 meters (765 yards) from the Arc de Triomphe and the Avenue des Champs-Elysees, will be sold for 245.5 million euros ($327 million) to Ivanhoe Cambridge, the real estate arm of Caisse de depot et placement du Quebec, the Paris-based carmaker said in an e-mailed statement today.
The 50,900-square-meter (548,000-square-foot) building, has about 1,900 staff members, mainly working for the corporate holding PSA and the Peugeot unit. The French carmaker will lease back the building for at least nine years, the company said in the statement.
Peugeot in February announced plans to sell assets after net debt more than doubled in the second half to 3.4 billion euros. Peugeot last week also completed a 1 billion-euro share sale through which General Motors Co. took a 7 percent stake in the French automaker as part of an alliance between the two.