Foncière Paris France: Quarterly Report for the Period Ended September 30, 2007

PARIS--(BUSINESS WIRE)--Regulatory News:

• Asset portfolio value – excluding transfer costs: €390 million
• Gross rental revenue: €15.6 million

Foncière Paris France (Paris:FPF) today released its quarterly report for the period ended September 30, 2007.

In € millions		Nine months to September 30, 2007		Nine months to December 31, 2006		% Change
Assets		390		250		+ 156%
Gross rental revenue*		15.6		7.1		+ 220%
*From January 1 to September 30 in 2007, as opposed to April 1 to December 31 in 2006.

ASSET PORTFOLIO

During the third quarter, Foncière Paris France acquired four new properties representing a total value of €20.1 million.

At September 30, 2007, the portfolio comprised 32 properties with a total value of €390 million, excluding transfer costs, and a gross rental yield of 6.9%.

New leases were signed during the quarter for a total of 7,500 square meters of surface area. They primarily concerned two recently acquired properties, one of which was leased to a trucking company and the other to a smart card manufacturer.

Over the first nine months of the year, new leases were signed for a total of 14,000 square meters.

A building permit was issued for the Mediacom 3 development in Saint-Denis on October 17, and construction is expected to get underway in first-half 2008.

FINANCIAL INFORMATION

• Consolidated gross rental revenue amounted to €15.6 million for the first nine months of the year, a 220% increase that was led by the acquisitions drive underway since early 2006.
• Consolidated debt stood at €164.7 million at September 30, 2007. Loan-to-value was less than 33%, while cash and cash equivalents stood at more than €80 million.

The interest-rate hedging strategy implemented in early 2007, which involves swapping variable for fixed rates, has ensured that 84% of bank borrowings are now at fixed rates. As a result, fluctuations in short-term money-market rates - particularly the increase observed in recent months - have only a limited impact on the Company's finance costs.

The average rate on bank borrowings is currently 4.8%.

OUTLOOK

• The commercial rental market has not suffered from the disruptions in financial markets over the past quarter and remains on an upward trend. The investment market has recently seen a decline in transaction volumes, with prices expected to flatten out or slightly decline. As a result, Foncière Paris France has reduced its 2007 investment target to €160 million from the previously forecast €200 million.
• Backed by its strong cash reserves, Foncière Paris France intends to pursue its strategy of fast, selective growth and is ready to seize any investment opportunities that may arise in 2008.

ABOUT FONCIÈRE PARIS FRANCE

Foncière Paris France is an SIIC specialized in commercial real estate in the greater Paris area. The Company was founded in May 2005 by Jean-Paul Dumortier, President of the Fédération des Sociétés Immobilières et Foncières.

Foncière Paris France has been listed since March 27, 2006 on NYSE-Euronext Paris’ Eurolist by Euronext™ market, compartment C (symbol: FPF, ISIN: FR0010304329).

www.fonciereparisfrance.com