PSA Peugeot-Citroen has sold its 48-year-old Parisian headquarters for 245.5 million euros ($311.3 million) in an effort to aid the company’s debt woes.

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The building, positioned near Paris icons the Arc de Triomphe and Avenue des Champs-Elysees, hosts about 1900 staff and was snapped up by Ivanhoe Cambridge - the real estate division of a Canadian pension fund management company Caisse de depot et placement du Quebec.

Despite the deal, PSA Peugeot-Citroen will lease back the building for at least the next nine years.

Cost cutting measures are nothing new for PSA. In 2011, job cuts were announced; in January 2012 it pulled out of Le Mans racing; and in February, fiscal measures were released that included an ‘asset-disposal plan’ after net debt reached 3.36 billion euros ($4.26 billion) at the end of 2011.

In a deal aimed at strengthening finances, PSA last week entered into an alliance with General Motors that saw the US company buy up one billion euros ($1.27 billion) of shares, giving GM a seven per cent stake in the French manufacturer.

And while one American car giant enters an agreement with PSA, another is in the process of exiting one - Ford has announced that while the two companies will continue with shared development of small diesel engines, its larger-capacity engines will become an individual affair.

The two currently share diesel engines ranging from 1.4 to 1.6 litres as seen in the Citroen C1 and DS3, Peugeot 107 and 308 and Ford Fiesta and Focus.