Hermes Real Estate Investment Management has acquired a 75% interest in a package of French wholesale stores from Metro Cash and Carry France (MCCF) as a part of its strategy to expand internationally.
Hermes Real Estate Investment Management has acquired a 75% interest in a package of French wholesale stores from Metro Cash and Carry France (MCCF) as a part of its strategy to expand internationally.
Financial details were not disclosed. However, Hermes said the investment reflects a total equity commitment in the low three-digit million range.
German lender Helaba, together with Crédit Agricole Corporate and Investment Bank, and Société Genérale are providing a loan of €87.5 mln for the portfolio. Helaba manages the consortium, acting as agent, co-arranger and hedge provider.
The portfolio, worth some €500 mln, consists of 43 core stores spread across France, representing 50% of the French store network. The stores are owned by an OPCI property fund managed by Amundi Real Estate and leased back to Metro Cash&Carry France on 12-year leases.
'We are delighted to have secured this portfolio of well-located properties leased to one of Europe's top retailers at a time in the cycle when few other investors are active, yet in a market where planning is restrictive and supply constrained,' said Chris Taylor, chief executive of Hermes Real Estate Investment Management.
'After having done an identical transaction in 2012, we are now happy to have gained Hermes as the main investor in our second French fund,' added Jürgen Schwarze, CFO of Metro Properties.
JLL acted for HREIML, while Societe Generale Corporate and Investment Banking acted as exclusive placement agent and financial adviser to Metro Properties.
