SFL Sells Its Stake in SIIC de Paris

Regulatory News:

SFL (Paris:FLY) today signed an agreement with EUROSIC for the sale of the whole of its 29.63% stake in the capital of SIIC de Paris (i.e. 12,769,538 shares) at a price of €24.22 per share (less any future distribution). This sale is conditional on the effective acquisition by EUROSIC of the SIIC de Paris shares held by REALIA.

The price of 309 million euros is consistent with the liquidation NAV of SIIC de Paris on 31 December, 2013, and with the value of this stake in the consolidated accounts of SFL at the same date. It represents a significant increase relative to the purchase price of €18.48 per share that was paid by SFL.

This operation is the culmination of a process that began in December 2010 when SFL contributed two buildings at La Défense (the Coface and Miroirs towers), with a value of €286 million, to SIIC de Paris. These were paid for in SIIC de Paris shares, a portion of which were immediately sold to REALIA for €50 million (see the press release of 27 December, 2010).

The proceeds of this sale will enable SFL to improve its debt ratios and significantly increase its investment capacity.

ABOUT SFL:

Leader on the prime segment of the Parisian tertiary real estate market, the Société Foncière Lyonnaise stands out for the quality of its property portfolio, which is valued at 4.1 million euros and is concentrated on the Central Business District of Paris (Louvre Saint-Honoré, Edouard VII, Washington Plaza, etc.), and for the quality of its client portfolio, which is composed of prestigious companies in the consulting, media, digital, luxury, finance and insurance sectors.

STOCK MARKET:

Euronext Paris Compartment A – Euronext Paris ISIN FR0000033409 – Bloomberg: FLY FP – Reuters: FLYP PA

S&P RATING: BBB- Stable outlook

www.fonciere-lyonnaise.com