Carmila, the third-largest listed owner of commercial property in Europe, has signed an agreement with the controlling shareholders of Galimmo, which owns and operates 52 shopping centers in France, to acquire 93% of the company’s capital.
The potential acquisition of Galimmo will be completed simultaneously with the acquisition of Cora France by Carrefour.
According to Carmila, the complementarity of Carmila and Galimmo’s geographical footprints and respective track-records are an opportunity to create a unique player in retail real estate in France.
Galimmo’s 52 assets, mostly located in the North-East of France, were valued at €688 million at end-December 2022. The sites will be managed according to the existing and successful rules of the Carrefour/Carmila ecosystem.
The total consideration for the acquisition of 100% of the shares of Galimmo would represent €294 million, to be paid in cash by Carmila.
The potential transaction offers a compelling value proposition to Carmila’ shareholders, with an implied net initial yield of 9.8% on Galimmo’s portfolio and accretion of both Net Asset Value per share and EPRA earnings per share.
The closing of the transaction is expected to occur in the summer of 2024 once all the related anti-trust and regulatory approvals have been obtained.
Marie Cheval, Chair and Chief Executive Officer of Carmila commented: “The acquisition of Galimmo represents a major milestone for Carmila and marks a further advancement in our longstanding partnership with Carrefour. Building on our experience and success in transforming sites alongside Carrefour hypermarkets, our goal is to capitalize on the potential of the ecosystem across a broader and complementary geographical footprint. This project will create value for Carmila and strengthen our relationships with tenant retailers.”
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