A joint venture of French retail specialist Altarea, Dutch pension fund ABP and Crédit Agricole Assurances' Predica unit has acquired the Cap 3000 shopping centre in Saint-Laurent du Var, near Nice from Galeries LaFayette. The transaction price of EUR 450 mln reflects a yield of 4.65%.

A joint venture of French retail specialist Altarea, Dutch pension fund ABP and Crédit Agricole Assurances' Predica unit has acquired the Cap 3000 shopping centre in Saint-Laurent du Var, near Nice from Galeries LaFayette. The transaction price of EUR 450 mln reflects a yield of 4.65%.

As part of the acquisition, Altarea, ABP and Predica have formed AltaBlue, a joint venture with a share capital of EUR 100 mln, with each party holding an equal share. As additional capital, ABP and Predica have provided EUR 200 mln of equity on which they will receive interest at a preferential rate. A long-term bank loan will cover the remaining financing requirements.

The transaction comes shortly after the signing of an exclusivity agreement on April 27.

Cap 3000, France's eighth-largest shopping centre, offers 126 stores across 66,000 m2 of gross lettable area and is anchored by a Galeries Lafayette department store. The fully-let mall was designed and built by Nouvelles Galeries in 1969 and currently offers 'significant potential' to enhance its rental value and extend its selling space. Altarea and its partners said that they are planning an extensive redevelopment of the shopping centre to bring it up to standards after 40 years in operation.

'This acquisition constitutes a strong sign for the investment market, which is showing clear signs of long-term investor confidence in the shopping centre sector,' the companies said in a joint statement on Friday.

'With the purchase of Cap 3000, Altarea has demonstrated its ability to position itself in regional shopping centres offering considerable potential. More than ever, shopping centres are the group's main focus,' said Alain Taravella, chairman and founder of Altarea.

Patrick Kanters, managing director global real estate of ABP Asset Management added: 'The acquisition of Cap 3000 is yet another example of ABP's strategy to co-invest alongside companies in which it already holds a substantial interest. We are pleased to make our first investment alongside Altarea, together with Predica.'

Galeries Lafayette was advised by HSBC and Baker & McKenzie. The buyer was advised by law firm De Pardieu Brocas Maffei. Predica was advised by Herbert Smith & Associés and Crédit Agricole Corporate Investment Bank, and ABP by Jones Day.

Galeries Lafayette, through HSBC, launched a tender process to sell the landmark property in February 2010. In March, the company shortlisted eight parties for the second bidding stage.