Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

PARIS-Société Foncière Lyonnaise, one of France's largest REIT/SIICs, has in recent weeks completed disposals totaling €117 million, the first since its former major shareholder, the struggling Spanish property group Colonial, which requested transaction suspensions in 2007/8, sold its SFL stake to private equity group Orion Capital Managers.

SFL Managing Director Nicolas Reynaud told PIE: "We initiated these deals at the beginning of 2009, and the disposals are in line with our 2009 disposal program. They remain modest as they only represent 3% of our portfolio."

Proceeds may contribute to paying back two loans falling due. SFL announced that even with sufficient credit lines, it had entered negotiations in order to extend facilities. "Following changes in the composition of Colonial's management and Board in summer 2008, we are once again free to carry out such transactions, but we remain both selective and assertive," the group said in a release - though it gave no indication if the sales proceeds matched or exceeded the asset prices on book for the five properties.