Impact: PSA Peugeot Citroen sells Head Office Building image

French car-maker PSA Peugeot Citroën said on Monday it had agreed to sell the property complex located 69 to 81 avenue de la Grande Armée and 6 to 8 rue Pergolèse in the 16tharrondissement of Paris.

The Group will lease back the building under a renewable nine-year lease.

The sale, for a total amount of Eur 245.5 million ($326.54 million), was part of the property disposal programme announced by PSA Peugeot Citroën last February during the presentation of its 2011 financial results.

French new car registrations totaled 197,033 in March, a drop of 23.5% on the year in nominal terms, the sector group CCFA said Monday. Taking account of the extra working day last year, the annual fall came to 20.0%.

PSA Peugeot Citroen (UG) and Renault SA (RNO), the two largest French automakers, declined after reporting weakening demand last month in their main home market.

PSA Peugeot Citroen, Europe’s second-biggest automaker after Volkswagen, posted a 33 percent decline to 59,290 car deliveries last month, while smaller domestic rival Renault suffered a 30 percent drop to 42,908.

First-quarter deliveries of passenger cars and light commercial vehicles fell 20 percent in France to 610,161.

Top-end manufacturers BMW and Mercedes were unaffected, posting sales increases of 8.4 percent and 24.2 percent.