Cegereal is not being taken private as suggested in a headline in PropertyDay on Tuesday. As announced earlier, the French office REIT is transferring the company's entire portfolio to Prothin, a new wholly-owned subsidiary, following approval by its shareholders in late December.

Cegereal, which is controlled by German fund manager Commerz Real with a 60% stake, said that the operation is aimed at securing better conditions for the refinancing of roughly EUR 400 mln of debt backing the assets. The company owns three office properties in Paris - Europlaza, Rives de Bercy and Arcs de Seine - valued at EUR 860 mln.

‘This move will allow for optimal conditions for the refinancing of the EUR 400 mln financial debt maturing in March 2013 ,' said Raphaël Tréguier, deputy CEO of Cegereal. FCC Opera France One, the mutual debt fund which refinanced Cegereal's debt by issuing a CMBS facility in 2006, succeeded in maintaining its AA and AAA investment grade ratings upon the transfer to Prothin, confirming the defensive profile of the new subsidiary, Tréguier added.

The transfer of real estate assets and their related debt to a dedicated vehicle works as a safety net for bondholders because it protects them from future creditors.