Icade completes La Lucette takeover, posts 70% rise in profits

French SIIC Icade said it has completed the purchase of the 94.5% stake in Compagnie La Lucette from Morgan Stanley's MSREF vehicle. The operation, which was first announced in December, envisaged the exchange of two Icade shares and EUR 32.5 in cash for 21 Lucette shares. As a result of the transaction, the US financial institution has become the second largest shareholder in Icade after Caisse des dépôts et consignations, holding a 4.5% stake.

Icade said it will launch an offer for the remaining shares of Compagnie la Lucette held in public ownership. In the event that following the offer Icade holds at least 95% of La Lucette, the company will implement a squeeze-out in order to buy out the remaining shareholders.

'This transaction enables Icade to strengthen the expansion of its commercial real estate investment division by fully reflecting Icade's strategy aimed at delivering sustainable growth of its cash flow and portfolio valuation', the company added. As part of the merger between Compagnie la Lucette and Icade, La Lucette's CEO Thomas Guyot has joined Icade's executive committee.

La Lucette holds EUR 1.5 bn of assets mainly consisting of offices located in Ile-de-France.

In a separate statement last week, Icade said it posted profits of EUR 527 mln for 2009, up nearly 70% on 2008's volumes. The company began the sale of its housing portfolio last year 'to reinvest in commercial property at the bottom of the cycle'. In 2010, Icade will complete the sale of residential units for over EUR 2 bn for a yield of about 4% while taking control of Compagnie la Lucette for a yield of about 8%.