URW, Crédit Agricole, La Française to form partnership for €2bn shopping centre portfolio

URW, Crédit Agricole, La Française to form partnership for €2bn shopping centre portfolio

Unibail-Rodamco-Westfield (URW) has received binding offers from a consortium of leading French investors comprised of Crédit Agricole Assurances and La Française (collectively, the Consortium) to acquire a stake in a new JV to be formed, in which the consortium will hold 54.2% and URW 45.8%.

The new JV will own these five French shopping centres, Aéroville in Paris region, So Ouest in Paris region, Rennes Alma inrennes, Toison d’Or in Dijon and Confluence in Lyon. These five assets represent 320,800 sqm of GLA with footfall of 42.5 million in 2019.

URW will continue management of these assets on behalf of the JV through long-term management contracts. This portfolio offers solid organic rental growth and significant upside from identified projects.

The implied offer price for the assets at 100%, €2,037mn, is in line with the last unaffected appraisal value and represents a net initial yield of 4.80%. As part of the transaction, a syndicate of banks has underwritten €1.0 bn in secured financing for the JV. Net proceeds to URW are expected to amount to €1.5 bn. This amount will increase as other investors join the Consortium now that this transaction is public.

“This transaction is fully aligned with URW’s strategy and is a major milestone in the Group’s disposal programme, as well as a tremendous opportunity to establish a long-term partnership with leading investors who recognize the quality and attractiveness of our shopping destinations. We are thrilled to form this strategic partnership with Crédit Agricole Assurances and La Française and look forward to working on future growth opportunities with our partners. Our expertise as operators is recognized as we will continue managing the assets owned by the newly formed JV”, said Christophe Cuvillier, Group CEO of URW.