PARIS — Galeries Lafayette has finalized the sale of the building housing the beleaguered Paris department store BHV.
In a statement, Galeries Lafayette group said it had sold the BHV Marais building to the investor with whom it had entered exclusive negotiations in December, without disclosing the buyer’s identity.
Galeries Lafayette said the sale was concluded on the same terms initially proposed to SGM, ending months of uncertainty over one of Paris’ most strategic retail real estate assets.
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Financial terms of the deal were not disclosed. The property is valued at 300 million euros.
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The buyer is said to be Brookfield Asset Management, a Canadian asset manager with a significant global real estate portfolio, AFP reported.
Galeries Lafayette said the SGM Group, which acquired BHV’s retail operations in 2023, would continue to run and develop the department store under the new ownership structure.
Société des Grands Magasins, cofounded by Frédéric Merlin, had initially been expected to buy the building itself and was linked to Galeries Lafayette by a promise to sell, with a deadline of Dec. 19.
However, assembling the financing proved difficult, particularly after state-owned Caisse des Dépots subsidiary Banque des Territoires withdrew its backing following the major controversy over the opening of Shein’s first physical store inside BHV.
On Dec. 20, Galeries Lafayette group announced it had entered into exclusive negotiations to sell the building.
SGM’s decision to welcome the Chinese ultra-fast-fashion giant triggered protests, lawsuits and political backlash. Galeries Lafayette quickly distanced itself from SGM, complicating the transaction, and ended a deal for SGM to manage five regional stores under its brand name.
Paris City officials also scrutinized the sale, with Paris mayor Anne Hidalgo publicly expressing interest in buying the property, and the city council authorized the city to submit a bid should the building be put up for public sale.
After Shein opened inside the department store, longtime partners withdrew from the location, including Dior, Sandro, Maje, Agnès B., Rive Droite and A.P.C., among others.
Merlin has indicated that he will revamp BHV’s retail strategy by adding a pharmacy and grocery store to entice local customers to return.