Mandarin Oriental to sell retail units next to Paris Hotel for €148m

The prospective buyer is Lavender Propco SNC, an entity controlled by Blackstone Europe LLP.

Mandarin Oriental International Limited, the parent company of Mandarin Oriental Hotel Group, has signed an option to sell its interests in two retail units adjacent to the Mandarin Oriental, Paris, located at 251 rue Saint-Honoré.

The prospective buyer, Lavender Propco SNC, an entity controlled by Blackstone Europe LLP, has offered $216m (€148m) for these units.

Mandarin Oriental International Limited originally acquired the building housing both the retail units and the hotel in 2013. Recently, the company split the property into separate titles and sold the hotel to Statuto Group for $299m (€205m) on 29 April. The proceeds from the pending sale of the retail units are earmarked to support the company's broader development initiatives.

Finalisation of the sale is subject to conditions, including Paris City's right of preemption, with completion expected by 30 June.