Apsys-led JV buys Parisian mall for €700m

A consortium led by developer-investor Apsys has signed a preliminary agreement to acquire the Beaugrenelle shopping centre in the French capital.

France's Apsys is joining forces with private firm Groupe Madar and Financiere Saint-James to buy SCI Beaugrenelle, the company owning the shopping centre in the 15th district of Paris.

Under the deal, Apsys and Groupe Madar will each control 40% of the scheme while Financiere Saint-James, the holding company of businessman Michael Benabou, will own the remaining 20%.

The scheme was previously 75% owned by Gecina. Apsys, Foncière Euris and Paris Orléans held the remaining 25% interest.

The transaction price comes to around €700 mln including transfer taxes, Paris-based Gecina said in a statement. 'This is the largest single property transaction ever carried out on the French shopping centre market,' Gecina said.

The landlord announced in July last year that it intended to sell the 45,000 m2 mall in the medium term. The French REIT hired banks Morgan Stanley, CACIB and HSBC to sell the scheme which had a development cost of some €450 mln.

The mall, which was expected to fetch some €800 mln, opened at the end of October after a comprehensive redevelopment. Designed by architects Valode & Pistre, the project was part of the redevelopment of the Front de Seine district of Paris.

Gecina has been selling off non-core assets including its hotel and logistics portfolios after two key Spanish shareholders filed for bankruptcy in October 2012. The company said that with the sale of the non-strategic Beaugrenelle asset it has completed the restructuring of its portfolio.

Gecina owns, managed and develops property holdings worth €10.7 bn at June 30, 2013, with 90% located in the Paris Region.

Gecina was advised by Morgan Stanley, HSBC and CACIB as financial advisors, by law firm De Pardieu Brocas Maffei for legal advice, and by notary's office Cheuvreux & Associés, with Convergences CVL providing real estate advice.