Unibail-Rodamco takes control of Mfi in German retail drive

Unibail-Rodamco, Europe's largest listed property company, is expanding in Germany by taking a controlling stake in Mfi, the country's second-largest shopping centre developer-owner, from global asset manager Perella Weinberg Partners.

Unibail-Rodamco will pay Perella EUR 383 mln in a deal that gives it access to German retail assets valued at EUR 1.5 bn, to which an estimated development pipeline of EUR 530 mln can be added. The Paris-based group currently owns one shopping centre in Berlin.

Under the deal, Unibail-Rodamco will acquire a 51% stake in the holding company which owns Mfi for EUR 297 mln. The stake will be taken over from a fund managed by Perella Weinberg. The Paris-based group will also buy a 50% stake in the Ruhr Park shopping centre for EUR 86 mln, reflecting a net initital yield of 4.8% and representing an asset value of EUR 190 mln.

In addition, the deal includes a three-year put option for Perella Weinberg to sell its remaining 49% stake in Mfi to Unibail-Rodamco for EUR 288 mln from the second half of 2014.

Unibail-Rodamco and Perella Weinberg have agreed to work together on future investments in Germany in a bid to create a major player in the shopping centre segment.

'This transaction represents an exceptional opportunity to penetrate one of the largest and most attractive property markets in Europe,' said Guillaume Poitrinal, CEO of Unibail-Rodamco. The transaction with Mfi gives the Paris-based group six malls in Germany. Mfi is building four more centres and manages 20 centres for other companies.

Unibail-Rodamco will pay the total transaction amount of EUR 383 mln in two installments: EUR 316 mln upon closing and EUR 67 mln as of 30 June 2014. The company said the acquisitions are expected to be 'immediately accretive' to its recurring net earnings per share.