Schroder European Real Estate sells two French supermarkets – Schroder European Real Estate Investment Trust says that the Casino Group, the French retailer, has exercised a buy-back option on the fund’s 70% share in two retail assets in France. The sale price reflects a 10% premium to current valuation.
Schroder European Real Estate acquired the grocery retail assets, in Biarritz and Anglet, in June 2016 by way of a joint venture, acquiring 70% of the investments and the vendor Mercialys, a subsidiary of Casino Group, retaining a 30% interest. The sale price of Schroder European Real Estate’s 70% interest equates to EUR44.8 million. Under the option, the re-purchase will exercise on 31 July 2018. The Casino Group will take over the fund’s share of the existing debt facility on the assets which amounts to EUR18.2 million and hence the net equity proceeds to the company from the sale are approximately EUR26.6 million.
Following the disposal, Schroder European Real Estate will have a combined equity and debt investment capacity of approximately EUR70 million and as stated at the Full Year Results, it continues to advance discussions on a number of acquisitions within its identified pipeline and remains confident of achieving full deployment in the short term.
SERE : Schroder European Real Estate sells two French supermarkets