PSA/Peugeot-Citroen is selling its Paris headquarters to Ivanhoe Cambridge, which is the real estate unit of Caisse de depot et placement du Quebec, as part of the automaker's initiative to lower its rising debt pile and to raise cash. Under a signed agreement entered into by the parties, the 48-year-old office will be sold for 245.5 million euros or $327 million.
The office is located around 700 meters from the Avenue des Champs-Elysees and the Arc de Triomphe. The headquarters employs around 1,900 people, most of which are working for the Peugeot brand unit and the PSA corporate holding company. The French vehicle manufacturer will lease back the office for at least nine years, the company disclosed.
In February, PSA revealed plans to put its assets up for sale after net debt increased more than twice to 3.4 billion euros in the second half. Last week, PSA also entered into a 1 billion-euro share sale wherein General Motors Co. obtained a 7% share in the French vehicle manufacturer as part of a partnership between the two parties.