MRM has signed agreements to acquire shopping malls in Flins-sur-Seine (Yvelines) and Ollioules (Var), France, from Altarea Commerce for €90.4 mln (including transfer taxes).
The deal would see MRM increasing capital to €50 mln, with Scor and Altarea each subscribing to €25 mln, while the remainder would be financed by a €42 mln bank loan.
Besides extending geographical presence in two fast-growing regions, the acquisition would increase the size of MRM’s assets by 52% from €163.0 mln to €247.3 mln and improve the company’s profitability.
François de Varenne, chairman of the Board of Directors of MRM, commented: ‘The acquisition of these two shopping centres would mark a real change of dimension for MRM, representing an increase of more than 50% in the value of our asset portfolio. Altarea is a key player in the real estate industry. Its entry in the share capital of MRM is a mark of recognition of our know-how and confidence in our ability to create value.’
François Matray, CEO of MRM, added: ‘Having gradually refocused our portfolio on retail properties, enhanced the value of our properties by means of an apt investment plan and then over the last two years stepped up our active portfolio management under complex conditions, this acquisition would open up new prospects, allowing us to roll out our proactive management policy on the basis of a larger portfolio. It would enable us to aim for annualised net rents of over €16 mln and make us more profitable thanks to better absorption of fixed costs.’
The two properties are both attached to Carrefour hypermarkets and are leading shopping centres within their catchment area, with physical occupancy rates of 97% and 92% respectively as at 30 June 2022.
They also combine yields and potential for value creation, given MRM’s asset management expertise (refurbishment, partial redevelopment, proactive rental management, changes in the retailer mix).
The Flins regional shopping centre has 56 stores covering a floor area of 9,972 m2 with a 97% occupancy rate, while the Carrefour Ollioules mall includes 44 stores extending for 3,124 m2, with a 92% occupation rate.
The deal, approved by MRM’s Board of Directors, is subject to the fulfilment of various conditions, including approval by MRM shareholders expected in Q4 2022.
The acquisition will boost MRM’s annualised net rents from €9.5 mln to €15.0 mln, increasing the company’s target from €10 mln to €16 mln.
