Globe Newswire


Paris, November 24, 2020 Press release In the absence of bank financing as well as contributions by other shareholders, the company FIPP, shareholder of the company FONCIERE PARIS NORD (FPN), has been ensuring the financing of the company PAMIER for several years, the sole subsidiary of FONCIERE PARIS NORD, by conditioning its loans by granting strong guarantees, in particular a pledge on PAMIER shares. On October 27, in view of the inability of the PAMIER company like that of its shareholder FONCIERE PARIS NORD to repay its debts to FIPP, to finance the heavy restructuring of the real estate site located in Blanc-Mesnil (Center d’Affaires Paris Nord) or even to finance the expenses necessary to allow the disposal of the site as it stands (asbestos removal work in particular), the company FIPP has decided to exercise its pledge on the PAMIER securities. FONCIERE PARIS NORD recalls that the Local Urban Planning Plan (PLU) which entered into force at the beginning of July 2016 changed the destination of the site of the Paris Nord Business Center to a residential area. FPN had submitted to the Combined Meeting of July 20, 2017 a resolution relating to the disposal of the main asset, a resolution approved by a very large majority. This disposal project was absolutely necessary given the very significant financing needs and the carrying costs (in particular the property tax) that such a restructuring would generate. The sale mandate given to the company CATELLA in March 2018 did not result in any firm offer, an asset held in co-ownership and an exorbitant annual amount of property tax of € 1.2 million discouraging Investors. The consolidation of the property was too expensive for FPN, highlighting the strong position of the co-owners in the implementation of a disposal project. As for the intransigence of the Tax Administration in reviewing its rental bases, it could only discourage investors. On the strength of its mandate received from the Joint Meeting, FPN nevertheless continued to negotiate financing with its shareholder FIPP during this period in order to continue its work of demolition and asbestos removal from the site. FIPP considered, however, that the new investments to be made on the site covered a risk of not being able to collect its debts. FONCIERE PARIS NORD has taken note of the various alternative strategies for transforming the site into a logistics platform, with offices or various tertiary activities, offered publicly by investors. It observes that these projects were disseminated on the basis of expert reports taking into account neither the PLU, nor the will of the town hall and the prefecture, nor the blocking power of the co-owners who can only be associated with the sale. of the site. It further notes that the initiators of these broadcasts never presented an offer to acquire, let alone a firm offer to buy back the site, their plans, quite simply coming up against the reality of the matter explained above. The company FONCIERE PARIS NORD also notes that valuations of the FPN share were disseminated by a financial analysis firm, being presented as “commissioned and financed” by the company itself. FONCIERE PARIS NORD would like to point out that it has neither commissioned nor financed these expertises. On the contrary, it considers that these expertises, clearly inspired by the promoters of the alternative strategies described above, give erroneous information to the market by mistakenly suggesting that the company has the power to have the PLU modified again to accommodate activities. tertiary sector and ignore the aspirations of the town hall of Blanc-Mesnil, which has an urban pre-emption right. Following the pledge exercised by FIPP, the company FONCIERE PARIS NORD no longer owns the PAMIER shares, but it is also and indirectly released from the debt that its ex-subsidiary carried towards FIPP and towards of the tax administration. FONCIERE PARIS NORD is now back to a healthier financial situation, which will allow it, in a troubled health period, to build a new operational strategy, prospect the real estate market, some of whose players have been undermined by the current situation, and seek to raise new funds to be placed on investment opportunities. The Chairman and CEO Richard Lonsdale-Hands

FPN – Press release on PAMIER-V24122020