Peugeot sells iconic headquarters
As part of efforts to decrease debt, PSA/Peugeot-Citroen agrees to sell its iconic Paris baseLess than a week after PSA/Peugeot-Citroen finalised its 1 billion-euro share agreement with General Motors, the company has announced that it will sell its iconic 48-year-old Paris headquarters in a bid to reduce debt. The sale was revealed as part of a wider property disposal program announced in February, when the company declared net debt of 3.4 billion euros.
The office, located less than a kilometre from the Avenue des Champs-Elysees and Arc de Triomphe will be sold for 245.5 million euros to property management and development company Ivanhoe Cambridge. The building houses around 1900 staff members, the majority employed by PSA’s corporate holding company and the Peugeot brand unit. PSA/Peugeot-Citroen said it will lease back the building under a renewable nine-year lease.
The news comes as French car manufacturers received a double blow to March sales. Vehicle registrations fell 23.5 per cent year-on-year in March to 197,033 units as the home market shuns PSA/Peugeot-Citroen and Renault SA products in favour of cheaper imports. PSA/Peugeot-Citroen posted a 33 per cent decline to 59,290 deliveries (total) in March while Renault fell 30 per cent to 42,908 units.
In recent times PSA/Peugeot-Citroen has also shed over 6000 jobs and withdrawn from Le Mans racing as a part of broader efforts to stay afloat.
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