European commercial property owner Carmila has agreed to buy 93% of French shopping centre operator Galimmo and will file a tender offer for the remaining shares.
Galimmo owns and operates 52 shopping centers in France, all anchored to Cora hypermarkets, valued at €688 mln at end-December 2022.
The sites will be managed according to the existing rules of the Carrefour/Carmila ecosystem.
The total consideration for the acquisition of 100% of Galimmo would represent €294 mln, payable in cash, corresponding to a 41% discount, and the loan-to-value ratio should remain below 38%.
Marie Cheval, chair and CEO 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.’
The acquisition price reflects a net initial yield of 9.8% and a 35% discount on the end-December 2022 valuation.
Closing of the deal is expected in the summer 2024 after all the antitrust and regulatory approvals have been obtained and the annual synergies are estimated at €5 mln.
The deal will be completed at the same time as the acquisition by France’s Carrefour Group, which has a 36% stake in Carmila, of the Cora and Match banners in France from Belgium’s Louis Delhaize Group.
The two banners operate 60 hypermarkets and 115 supermarkets, mostly in Northern and Eastern France, and the transaction foresees the acquisition of the real estate of 55 hypermarkets and 77 supermarkets.
