France's Mercialys said on Friday that its board has agreed to acquire five shopping centres located on La Réunion Island, near Madagascar, from Vindemia, a wholly-owned subsidiary of the Casino Group. The malls comprise 127 shops and mid-sized specialty stores, representing a total surface of 28,700 m[sup]2[/sup] and gross rental income of EUR 5.3 mln for 2007. They have been valued by independent appraisers at a total of Euro 77.3 mln including transfer taxes.
France's Mercialys said on Friday that its board has agreed to acquire five shopping centres located on La Réunion Island, near Madagascar, from Vindemia, a wholly-owned subsidiary of the Casino Group. The malls comprise 127 shops and mid-sized specialty stores, representing a total surface of 28,700 m2 and gross rental income of EUR 5.3 mln for 2007. They have been valued by independent appraisers at a total of Euro 77.3 mln including transfer taxes.
The acquisition would be paid partly in cash (about EUR 9.8 mln) and the remainder in newly-issued Mercialys shares. The company forecasts a minimum acquisition price of EUR 73.3 mln, provided it benefits from reduced transfer taxes.
'Mercialys is acquiring a rare portfolio of shopping centres in premium positions in their market and which presents attractive development potential. This would boost Mercialys' growth as soon as 2008, before we see the full effects of existing growth drivers as the Alcudia program and completion of new developments by our partners,' said Jacques Ehrmann, chief executive officer at Mercialys.
Mercialys is a tax-friendly SIIC retail company that is owned 60% by Casino group.
See also our article on Casino's EUR 650 mln property disposals.
