One of Paris' historic palaces for sale

Mr Claude Cayla, MD at Catella Residential in Paris, Catella France, is pleased to have been commissioned to sell one of the few historic palaces in Paris. Karl Lagerfeld rented the facility for 27 years up until last year. He has now relocated.

WHAT IS THE BACKGROUND TO CATELLA FRANCE IN PARIS BEING COMMISSIONED TO SELL THE PALACE IN THE 7TH ARRONDISSEMENT?

"I got to know the owners - the Pozzo di Borgo family - during an advisory commission for an Italian client. She was studying the possibility of buying the two companies that own the property (share deal) for EUR 75 million. Unfortunately, the transaction was not completed due to the potential imposition of French tax (ISF). Following this, the owners decided to invite five estate agents in Paris to submit tenders. Our tender won, thanks to the fact that we proposed a new configuration based on two components:

International: we are building a network worldwide, to collect all possible buyers in an invitation to bid, not only the "known buyers" familiar with the Paris market.

Invitation to bid: organized and opened for a 6 weeks period, this invitation that we call in French "gré à gré encadré" runs as follows: if any potential buyer in the 6 weeks period reaches the target amount of 100 M€, the sale is over, he/she is the new owner and the actual owner has to sell. If the target amount is not reached, the owner has the right to accept any offer, during the process. At the end of the process, the owner can also decide to pick the 4 or 5 best offers, and make them compete.

We already made a great experience with the sale of the "Hotel Titon".

HOW LONG DO YOU ESTIMATE IT WILL TAKE UNTIL THE RIGHT BUYER OCCURS?

If all goes well, we expect to collect the offers in November / December 2009, and close the deal in March 2010.

WHAT DO YOU THINK THE BUYER PROFILE LOOKS LIKE?

Although it's difficult to say for sure, as we are opening new doors in the search of potential customers, let's say that the normal target area for such an asset is either Russia or the Golf countries. It could also be somebody from the international jet set; Actors, singers, leader of a famous rock band, TOP hundred of main Fortunes or Embassies.

WHO OWNS THE PALACE TODAY?

The Pozzo di Borgo family.

HOW MUCH DO YOU ESTIMATE THIS PALACE TO BE WORTH?

We estimate it to be worth approximately 100 000 000€. Of course we can expect some offers between 85 and 100 m€. But we think the weighted price of approximately 20 000 €/sqm is competitive. Some transactions in Paris or in London were done to more than 30 000 € / sqm . This place is unique and we consider it is the most beautiful private property in Paris. The price could be between 75 M€ or 125 M€. There are not two hotels like this one and somebody won't miss the opportunity to buy this property. Our objective is clearly 100 M€. It is the price to pay to be sure to get it.

HOW MANY OF THE CATELLA FRANCE EMPLOYEES ARE INVOLVED IN THIS BUSINESS DEAL?

Three including me. We are going to produce a four minute video clip just for this property. A famous photographer Jean Francois Rauzier has accepted to make a work on this property. Benoit Delaumez (an other photographer) did a work on the hotel Titon.

source : Catella