French property company Klemurs, part of the Klepierre group, has reached agreement with Fonciere Montel on the acquisition of 112 retail outlets for an estimated EUR 153 mln. The retail properties are operated by the Defi Mode chain and other nationwide brands and are either owned outright or held under property financing leases. They are located in the suburbs of mid-sized cities throughout France and cover a total 99,000 m[sup]2[/sup].
French property company Klemurs, part of the Klepierre group, has reached agreement with Fonciere Montel on the acquisition of 112 retail outlets for an estimated EUR 153 mln. The retail properties are operated by the Defi Mode chain and other nationwide brands and are either owned outright or held under property financing leases. They are located in the suburbs of mid-sized cities throughout France and cover a total 99,000 m2.
Since some of the assets are still under construction, the acquisition will be effected in two stages: Klemurs will buy 87 assets (covering a total of 75,650 m2) in the first quarter of 2008 and the remaining 25 assets (covering at total of 23,350 m2) by end-June 2009. The properties are expected to generate a net rental income of EUR 9.1 mln a year.
Parallel to this deal, the Vivarte group, which operates retail clothing and footwear businesses, is in exclusive talks with Defi Mode on acquiring its operations. Both transactions are subject to the usual regulatory approvals.
Defi Mode is a retail clothing chain founded in 1981 by Bernard and Dominique Montel. It has 191 suburban outlets and plans to open 30 more in 2008 with the support of Fonciere Montel.
