PARIS — Galeries Lafayette announced Saturday it is in exclusive negotiations to sell the historic building housing the BHV department store.
The French retail group said the potential buyer was “an Anglosaxon actor with a recognized expertise in property assets” and that the deal could go through “as soon as January.”
The name of the potential new owner of the building was not disclosed.
“The sale of this strategic property asset located on Rue de Rivoli, in the heart of Paris, is being considered under the conditions initially planned with the SGM group,” according to a statement by the Galeries Lafayette group.
“This acquisition will be done by the investor in agreement with the SGM group, which will continue to operate the BHV,” it continued.
When Galeries Lafayette Group sold the BHV Marais department store in 2023 to Groupe SGM (which stands for Société des Grands Magasins), a family-owned firm specializing in city-center retail, the new owner had until the end of 2025 to purchase the building.
The deadline to complete the transaction was Dec. 19.
Initially, the SGM was backed by the Banque des Territoires, a entity of public financial institution Caisse des Dépôts, which dropped out following the opening of Shein within the BHV Marais and the ensuing backlash. The Galeries Lafayette Group also cut ties with the SGM over the ultra-fast-fashion retailer’s arrival.
The fate of the BHV’s historic home has also highly scrutinized by city officials.
According to French press, Paris mayor Anne Hidalgo expressed interest in the building, which is just across from the Paris city hall. A resolution was passed on Tuesday by the city council to put in an offer for the building, valued at some 300 million euros, should it go back on the market.
