Rinascente owners agree EUR 260m sale to Central Retail

Shareholders in the Italian department store group Rinascente have approved the sale of the operational company to Centrail Retail Corporation (CRC), Thailand's largest retail group, for EUR 205 mln in cash and the assumption of EUR 55 mln in debt.

In a statement late on Friday, the companies said the transaction reflects a 'fair price' of 11 times EBITDA. Completion of the sale is conditional upon authorisation by the Antitrust authority.

The Rinascente operational company is 46%-owned by Investitori Associati, with Deutsche Bank's RREEF holding a further 30%, followed by Prelios with 20% and Italian businessman, Maurizio Borletti's Tasso with the remaining 4%. Italian property services group Prelios said the transaction 'will allow it to optimise its investment in a business that is no longer held to be strategic for the company'. The company is realising a total capital gain of more than EUR 30 mln.

With registered office in Bangkok, CRC is the leading operator in distribution in Thailand, and is specialised in the professional management of large warehouses, supermarkets, retail parks and stores. In addition to retail, the group's business also includes property, hotels and restaurants.

Citi, lawyers Gilberti and Pappalettera, and Professor Anelli advised the vendors on the deal.

The disposal process comes hard on the heels of the sale in March of the Rinascente store in Milan's Piazza Duomo for EUR 472 mln. The landmark department store was sold to the Ippocrate investment fund, which is majority-owned by the privatised pension fund for Italian doctors and dentists (Enpam) and is managed by Italian fund manager First Atlantic Real Estate.

The consortium is also in negotiations to sell the other Rinascente department store at Via del Tritone in Rome for a price of around EUR 260-270 mln.