Altarea has sold two shopping centres to fellow French listed real estate company, MSM, and acquired an entity stake in a transaction worth €90.4 mln.
MSM has organised payment in kind via two capital increases – Altarea is subscribing to new shares in Altarea worth €25 mln, while exisitng shareholder, SCOR SE, is also subscribing to €25 mln worth of shares, with the rest of the finance coming from a €42 mln bank loan.
Following the deal, Altarea has a 15.94% share in MRM while SCOR SE owns 56.64%. Altarea is appointing a representative to the board.
As reported in July, the shopping centres in question are Flins-sur-Seine (Yvelines) and Ollioules (Var), both of which are attached to Carrefour hypermarkets.
MRM called it a ‘transformative’ transaction, increasing the value of its portfolio by more than 50%, with potential for improvement in profitability and changing its shareholding structure, while also keeping the company’s net debt at a controlled level.
François de Varenne, chairman, said: ‘The finalisation of this major acquisition, which has a significant structural effect on MRM, marks a real change of dimension for the company. We are delighted to count Altarea, a leading name in the real estate sector, as one of our shareholders. This attests to its confidence in our company’s ability to create value.’
François Matray, CEO, added: ‘We are very pleased that all stages leading to the acquisition of two shopping centres from Altarea have been completed successfully and on schedule. This acquisition has a structural effect and open up new opportunities for growth with the rollout of our proactive asset management policy on the basis of a larger portfolio.’
MRM’s advisors for the whole transaction werr Gimar & Co (financial advisor), De Pardieu Brocas Maffei (legal advisor) and Lasaygues (notary).