Listed French commercial real estate company Mercialys has confirmed the acquisition of five shopping centres on the French island of La Reunion in the Indian Ocean. The shopping centres, with a total surface area of 28,700 m2, are being bought from Vindemia, a wholly owned subsidiary of French retail group Casino, for just over EUR 73 mln. The centres comprise 127 shops and mid-sized specialty stores. Gross rental income for the properties comes to EUR 5.3 mln for 2007. The deal was originally signalled on 19 October.
Listed French commercial real estate company Mercialys has confirmed the acquisition of five shopping centres on the French island of La Reunion in the Indian Ocean. The shopping centres, with a total surface area of 28,700 m2, are being bought from Vindemia, a wholly owned subsidiary of French retail group Casino, for just over EUR 73 mln. The centres comprise 127 shops and mid-sized specialty stores. Gross rental income for the properties comes to EUR 5.3 mln for 2007. The deal was originally signalled on 19 October.
Mercialys' total investment will amount to EUR 73.3 mln, and as a leasing contract is in place on one of the malls, Mercialys will pay a total of EUR 70.1 mln net of debt. Mercialys expects to acquire one of the five centres, based in Saint Benoit, on 21 December for EUR 9.9 mln in cash.
The other four centres are to be purchased with more than 2.2 million new Mercialys shares, with an agreed value of EUR 27 per share. Mercialys is a tax-friendly retail property company with SIIC status, the French equivalent of a real estate investment trust. Casino Group holds a 60% stake in the company.
