Simon buys BNP Paribas stake in Klépierre for EUR 1.5b

Simon Property Group (SPG) has acquired a 28.7% stake in French retail REIT Klépierre from BNP Paribas for EUR 28 per share, or a total transaction value of around EUR 1.5 bn.

The deal is expected to close next week, SPG said on Thursday. The US company, which is the largest owner of American malls and outlet centres, has no current intention to acquire additional shares in Klépierre.

BNP Paribas, which previously owned 50.9% of Klépierre, said it will retain 22.2% of the company's capital after the deal, and plans to remain a significant shareholder in the company. BNP said it is committed to keeping this entire stake for at least one year.

Klépierre is a Paris-based real estate company that focuses on the ownership, management, and development of shopping centres, retail properties and offices across Continental Europe. Its portfolio, valued at EUR 16.2 bn at December 31, includes 271 shopping centres in 13 countries, with 50% of its properties in France and Belgium, 25% in Scandinavia, and the balance in Central and Southern Europe.

As part of the transaction, SPG’s CEO David Simon will become chairman of Klépierre’s nine-member supervisory board. Two additional SPG representatives will join the Klépierre board as well.

Commenting on the deal, Simon said: ‘We are very excited to become the largest shareholder in Klépierre, which has a collection of unique retail assets in strong markets in Europe. The investment in Klépierre represents an attractive opportunity for SPG as we seek to broaden our global footprint. We have long been admirers of Klépierre, its pan-European footprint and growth potential, and we look forward to working closely with the Klépierre management team.’

Laurent Morel, CEO of Klépierre, commented, ‘We are very enthusiastic to have Simon Property Group as a significant investor in Klépierre, which will combine Klépierre’s expertise, strong European presence and development potential with the expertise and leadership of the largest global retail real estate company. Simon’s collaboration with the Klépierre team will be a significant asset in driving the profitable growth of our company.’