Unibail-Rodamco-Westfield CDI (ASX: URW) shares are edging lower today despite the company advising it has finalised the sale of its French office buildings. At the time of writing, the Unibail share price is trading 0.71% lower at $5.62.
What did Unibail announce?
The Unibail share price is in negative territory after the shopping centre operator provided investors with an update on its divestment.
According to its release, Unibail has completed the disposal of its Village 3, 4, and 6 office buildings. Located in the La Défense (Paris region), the offices were sold to French institutional investors.
This follows the separate office disposal agreements that were entered into in December last year.
An institutional fund managed by La Française Real Estate Managers took the keys to Village 3 on 4 March 2021. Village 4 and 6 followed thereafter with institutional fund manager Perial AM taking ownership on 17 March 2021.
The total global lease area comprised 22,144 square meters, with Orange and Orange Cyberdefense as the main tenants.
For both transactions, the net disposal price to be received is 213 million euros. This includes all transfer taxes and transaction costs from the acquisition.
Unibail stated that with the latest agreements wrapped up, along with the SHiFT disposal, the group has completed 0.8 billion euros of its asset disposal target. The company has its sights set on delivering 4 billion euros via its European asset disposal program.
Quick take on Unibail
Established in 2007, Unibail is a European commercial real estate company headquartered in Paris, France. The company operates flagship shopping centres around the world and has an estimated portfolio valued at around 56.3 billion euros.
About the Unibail share price
Over the past 12 months, the Unibail share price has gained around 30%, with year to date gains sitting at around 10%.
The company's shares have been on a wild rollercoaster ride since COVID-19 came into the world last March. At the end of September, Unibail shares were swapping hands for as little as $2.41, before accelerating upwards.
On current valuation grounds, Unibail commands a market capitalisation of roughly $1.2 billion, with more than 219.4 million shares outstanding.
