French SIIC Terreïs is buying EUR 209 mln worth of Paris assets in a deal which 'significantly increases its asset size and its financing structure'. The company said it is taking over Dab Expansion from the holding company of businessman Jacky Lorenzetti for EUR 19.50 per share.
French SIIC Terreïs is buying EUR 209 mln worth of Paris assets in a deal which 'significantly increases its asset size and its financing structure'. The company said it is taking over Dab Expansion from the holding company of businessman Jacky Lorenzetti for EUR 19.50 per share.
Dab Expansion is the owner of an 89% interest in SCI Avenir & Investissement (A&I), which controls a portfolio of 16 Haussmanians residential buildings. The properties comprise a total of 30,400 m2 of space in the seventh, eighth, ninth, 15th, 16th and 17th districts of Paris as well as three office buildings offering 13,000 m2 in the cities of Paris, Tours and Nancy.
Terreis is financing the purchase with a EUR 100 mln capital increase which will be led-arranged by Crédit Agricole Corporate and Invest Securities. The transaction is due to be voted on an extraordinary shareholder meeting scheduled for 10 January 2011.
Ovalto, the holding of the Lorenzetti family, said the operation is part of its long term real estate development strategy.
'The merger will allow Terreis to strengthen its balance sheet creating a company with a real estate portfolio valued at EUR 575 mln and debt of EUR 229 mln,' it said. The operation brings the total acquisitions carried out by Terreis in 2010 to EUR 700 mln.
