Inmobiliaria Colonial SOCIMI SA agreed to purchase a further 22.2% interest in French subsidiary Société Foncière Lyonnaise from the Qatar Investment Authority, for a total investment of €718 million.
The deal involves a noncash capital increase in Colonial, and a share swap and €203 million cash payment to the sovereign wealth fund by the Spanish office real estate investment trust.
The deal will be up for a vote at a forthcoming stockholder meeting. Transaction terms reflect an average acquisition price of €69.6 per share, a 19% discount on the last reported €85.7-per-share net asset value of SFL.
Following the transaction, Colonial will own an 81% stake in SFL.
The deal will lead to a simplification of Colonial's group shareholding structure and a 10% increase in recurring earnings per share, according to a company release.