La Banque Postale and pbb Deutsche Pfandbriefbank have provided a €480m, long-term loan to the French government for the leasing and eventual purchase of the Tour Séquoia tower in Paris.
The facility, referred to as a finance lease, allows the French government to pay a market rent over the term of the contract and then acquire the building at the end by paying a nominal sum of €1.
In a joint statement, Paris-based La Banque Postale and pbb said “the finance lease is a legal tool which is becoming increasingly relevant for public entities as part of their real estate strategy”.
“While offering a flexibility equivalent to the enjoyment of an owner and total control of the project, the finance lease also allows public entities to keep their own funds for other purposes,” said the banks.
“Furthermore, rents offer economies as public entities benefit from a purchase agreement fixed at closing without additional payment.”
Jean Christophe, general manager of the French branch of pbb, said: “This is the first finance lease transaction for pbb. It demonstrates our capacity to build on synergies between our two business segments, real estate finance and public investment finance, as well as the capacity to meet public sector requirements.”
It is the third finance lease transaction carried out by La Banque Postale with the French government.
The two banks provided the latest facility to France Domaine, the owner and manager of the French government’s real estate assets.
The Ministry of Ecology, Sustainable Development and Energy and the Ministry of Housing, Territories Equality and Rural Affairs will move into the recently renovated, 33-floor Tour Séquoia, located at La Défense in Paris.
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