Foncière Euris, Rallye, Sonae Sierra sell 91% of German mall

French listed property firm Foncière Euris, retail investor Rallye and shopping centre specialist Sonae Sierra have finalised the sale of their 91% stake in the Loop5 shopping centre in Weiterstadt, Germany to Deutsche Asset Management.

Financial details were not disclosed.

Sonae Sierra, which previously owned 50% of the mall, will remain a shareholder of the property company retaining a minority stake of 9% while continuing to be responsible for the management of the shopping centre.

This disposal enabled Foncière Euris and Rallye to receive respectively proceeds of €14 mln and €19 mln for their respective interests which come to a combined 40%, with the potential to receive additional earn-outs by 2020 based on the performance of the shopping centre.

Loop5, which ranks among the largest shopping centres in Germany, is located in the retail park of Weiterstadt, in the south of the Frankfurt agglomeration. The centre, which opened to the public six years ago, provides 56,000 m2 of gross lettable area with 175 tenants including H&M, Mango, C&A or Saturn.

'This successful transaction reflects the quality of our assets and Sonae Sierra’s ability to implement its active capital recycling strategy to reinvest in new projects. This commitment is enhanced by the fact that Sonae Sierra will remain responsible for the centre management of Loop5. At the same time, Sonae Sierra continues to maintain a solid presence in Germany, with seven shopping centres under management, three owned and four of them for third parties,' said Fernando Guedes Oliveira, CEO of Sonae Sierra.

The sellers were advised by JLL, Berwin Leighton Paisner and Hogan Lovells.