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

PARIS-French SIIC Foncière des Régions has signed an agreement with its largest single tenant, France Télécom, for the latter to take longer leases for 108 buildings in the Paris region and other major cities and to purchase 65 properties from FdR for €133 million.

The deal marks the latest step in FdR's 2010 action plan, which adapts strategy to the current economic crisis. The result is to extend lease terms and increase security in the group's rental cash-flows, and it also implies that the annual asset sales goal of €500 million will be exceeded this year, FdR said.

The extended leases cover properties valued at €754 million at year-end 2008 for an annualised rent of €65 million, giving a current yield of 8.6%. Average new term is seven years firm, versus two-year residual terms across the portfolio previously.