PSA Peugeot Citroën has decided to sell its head office building in Paris for €245.5 million to lower its debt which stood at €3.4 billion last year. A subsidiary of Ivanhoé Cambridge, the real estate arm of Caisse de dépôt et placement du Québec, will buy the property and will lease back the building under a renewable nine-year lease.

The sale is part of the property disposal programme announced by PSA Peugeot Citroën last February during the presentation of its 2011 financial results.

PSA Peugeot’s decision to sell its HQ building follows the completion of a €1 billion share sale or a 7 percent stake sale to General Motors as part of an alliance between the two majors.

The French automobile major has delayed its India entry plan due to the financial crunch it is grappling with currently.