French property company Klepierre could be badly affected if Carrefour moves to sell off its estimated EUR 20 bn property holdings, said analyst Boudewijn Schoon at Dutch merchant bank Kempen & Co. The analyst noted that Klepierre’s recent share price losses were more than likely due to the uncertainty surrounding Carrefour since US private equity firm Colony Capital and French billionaire Bernard Arnault acquired a 9.1% stake in the French retailer. Colony has been pressuring Carrefour to sell off its real estate holdings to finance growth.
French property company Klepierre could be badly affected if Carrefour moves to sell off its estimated EUR 20 bn property holdings, said analyst Boudewijn Schoon at Dutch merchant bank Kempen & Co. The analyst noted that Klepierre’s recent share price losses were more than likely due to the uncertainty surrounding Carrefour since US private equity firm Colony Capital and French billionaire Bernard Arnault acquired a 9.1% stake in the French retailer. Colony has been pressuring Carrefour to sell off its real estate holdings to finance growth.
Klépierre has signed contracts with Carrefour on the development of hypermarkets anchored by Carrefour. Schoon noted that Carrefour usually owns most of the land in such developments, but may look for another construction if it bows to pressure from Colony.
The danger for Klépierre is that it may have to renegotiate its deal with Carrefour for the property it is developing and already manages for Carrefour. On the other hand, Klépierre could at least acquire part of Carrefour’s property assets, which would be a positive move for the French company, Schoon said.
