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Galeries Lafayette Finalizes Sale of BHV Building With SGM Retaining Operations

A source identifies Brookfield as the buyer, pointing to a rehabilitation push under a new landlord.

Overview

  • Galeries Lafayette said it has completed the sale of the BHV property but did not disclose the purchaser.
  • A source close to the matter told AFP the buyer is Brookfield Asset Management, a North American real estate and infrastructure investor.
  • SGM, which bought the BHV business in 2023, will continue to run and develop the department store and welcomed the prospect of a full building rehabilitation.
  • SGM had been slated to acquire the walls but its financing unraveled after the Banque des Territoires withdrew following the decision to host Shein in the store.
  • The operator faces ongoing commercial strain, including brand departures and weak sales conversion at the Shein space, and Galeries Lafayette has also ended a separate contract with SGM covering seven provincial stores.