French listed property company Klépierre has signed an agreement with the Italian group Finiper to acquire an additional 21.3% interest in IGC, the owner of nine shopping centres located in the vicinity of Milan. The EUR 76.5 mln acquisition should be completed by year-end, the Paris-listed company said.
French listed property company Klépierre has signed an agreement with the Italian group Finiper to acquire an additional 21.3% interest in IGC, the owner of nine shopping centres located in the vicinity of Milan. The EUR 76.5 mln acquisition should be completed by year-end, the Paris-listed company said.
The transaction will boost Klépierre's stake in IGC to 71.3% from 50%. The portfolio will provide the French company with nearly EUR 5 mln of additional net rent per annum. In light of existing debt, Klépierre may also have to inject a further EUR 48 mln.
Additionally, the company has signed an agreement to buy the remainder of IGC's capital that can be exercised at the request of the Finiper group until 14 December 2017.
Klépierre has a joint venture with Finiper in Italy called Clivia. This 50/50 partnership recently bought the Vittuone mall providing 32,500 m2 of retail space in western Milan, and also owns the recently opened Lonato mall in eastern Milan and the Verona mall. Finiper has an exit option from Clivia that is similar to IGC's. Klépierre's Italian portfolio consists of a total 35 shopping centres valued at nearly EUR 1.5 bn.
'The disposal programme underway and the financial restructuring that we undertook at the beginning of the year enable us to take advantage of the best acquisition opportunities,' said Laurent Morel, chairman of Klépierre.
