The French department store group Galeries Lafayette, owned by the Moulin-Houzé family, is selling the BHV Marais building. The buyer is an Anglo-American investor specializing in real estate.
“The Galeries Lafayette Group announces that it has entered into exclusive negotiations with an Anglo-American player with recognized expertise in the management of real estate assets,” the statement said. “The aim is to hand over the property of the iconic BHV building to him in January.” At the time of publication, the name of the interested party is not yet known.
This means that Société des Grands Magasins (SGM) will continue to operate BHV Marais. This includes the stores, the employees and the brand. However, SGM will not acquire the building itself.
For Frédéric Merlin, the head of the SGM, this represents a setback. However, it does not come as a surprise. The Banque des Territoire had previously ended the negotiations. The reason for this was the strong resistance to Shein’s settlement on the sixth floor.
Paris mayor loses control
The sale will allow Galeries Lafayette to free up financial resources. According to the newspaper Le Monde, the sale will take place under the conditions agreed with SGM. The price is therefore around 300 million euros.
If the sale goes through, Anne Hidalgo’s wish will not come true. The mayor of Paris had sought to acquire the BHV Marais building for the city. This could only happen if the city administration asserts its right of first refusal for the department store.
Since negotiations have not yet been completed, Galeries Lafayette is not obliged to disclose the name of the buyer. According to CFNEWS Immo, it is said to be a Canadian investor, namely Brookfield. However, this information has not yet been officially confirmed.
A real estate investor is never neutral. He or she decides on rental prices, the term of lease agreements and possible uses for the property. Tolerance of business risks also falls within his or her area of responsibility. Ultimately, he or she determines who can stay, move in or move out in the medium term.
The question of the investor goes beyond the pure real estate aspect. It affects the future direction of the BHV Marais as a whole. In particular, it’s about what place actors like Shein will take and how coherent the department store’s fashion concept will be in the future.
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