Gare du Nord: A first legal victory for the SNCF against Ceetrus, Auchan property owner

This is one of three disputes between the two companies since SNCF broke, two years ago, the modernization and concession contract for the Gare du Nord that it had concluded with Ceetrus.

The property company, which became New Immo Holding, was ordered on Friday to pay the company SNCF Gares et Connexions the sum of 47 million euros, "in execution of the independent guarantee on first demand", as well as interest, according to the judgment with “provisional execution” consulted by AFP.

New Immo Holding announced Friday evening that it would appeal "this inexplicable and unmotivated decision", in a statement sent to AFP. The property company also considers that this decision "is of limited scope since it does not rule on the merits".

“The concessionaire has in fact asked the administrative judge to repair the consequences of an irregular and unfounded decision made to its detriment as well as that of users and Paris,” believes New Immo Holding.

For its part, SNCF Gares et Connexions welcomed this “first significant legal victory in its dispute with Ceetrus over the Gare du Nord”.

Two years ago, the railway company abandoned its ambitious but controversial expansion project for this station, which is the busiest in Europe with 700.000 travelers per day.

Chosen in 2018, Ceetrus signed the contract at the beginning of 2019, entrusted to a joint company owned 66% by the Auchan property company and 34% by SNCF Gares et Connexions.

But in September 2021, the railway company denounced this contract linking it to Ceetrus, citing a lack of control of the project, soaring costs and very significant delays.

Accusing the Auchan property company of "serious failure", the SNCF had accused it of "unbearable deviations from commitments", with a tripling of the cost of the work (to 1,5 billion euros) and delays.

Ceetrus, for his part, had accused his ex-partner of lacking “loyalty”.

Two other disputes

The work initially planned was to considerably expand the Gare du Nord in anticipation of the 2024 Olympic and Paralympic Games in Paris. The renovated station was to house new businesses. The project was considered pharaonic and disconnected from its urban environment by elected officials and associations.

A long controversy with the Paris town hall - which had initially approved the file - led to the adoption in November 2020 of a less imposing and commercial version of the project. But not all of the work could be completed in time for the Games.

Since the final abandonment of the project, the SNCF has launched much more modest developments at the Gare du Nord, for a total amount of 50 million euros. This project must be completed in April 2024.

SNCF Gares et Connexions explained on Friday that it had asked the court for payment of the “guarantee of 47 million euros to enable it to finance the first works” of its new “renovation program” of the Gare du Nord launched “with a view to the 2024 Olympics”. But the railway company "obviously did not wait for the decision of the commercial court to begin the work necessary for all travelers for the Paris Olympics by financing them from its own funds", she underlined.

The former partners face each other in two other disputes before the administrative court.

One was hired by Ceetrus to contest the breach of contract. The other is led by SNCF Gares et Connexions which said it wanted to “obtain compensation of 300 million euros from Ceetrus”.