METRO PROPERTIES & ECE form JV for retail parks
The real estate entity of METRO GROUP, METRO PROPERTIES, will contribute its retail park operations to a joint venture with the shopping center developer and operator ECE effective on 1 October 2011. The two partners will each hold a 50 percent share in the future company "MEC METRO-ECE Centermanagement GmbH & Co. KG" (MEC) with registered office in Düsseldorf. In future, MEC is to take over the management including operation, leasing and marketing of 38 retail parks in Germany.
"We are teaming up with ECE and opening up new perspectives for our Center Management function. The business with retail parks remains an important pillar of our overall portfolio and is to be developed further also in future", said Thomas Ziegler, Managing Director of METRO PROPERTIES.
ECE CEO Alexander Otto: "We are convinced that the successful asset management operations of METRO PROPERTIES in conjunction with the expertise of ECE in the fields of center management, marketing and leasing represents a combination with a promising future. In terms of perspective, the new company can look forward to many opportunities for taking over further center management duties and refurbishment projects".
METRO PROPERTIES is contributing its business with a total of 36 retail parks across Germany to the joint venture. The vast majority of the roughly 100 employees working in the Center Management function of METRO PROPERTIES will continue work under the new company. In addition to two own centers, ECE will contribute in particular its management, marketing and leasing expertise to the joint venture.
The designated managing directors of MEC are Jann Robert (until now Head of Controlling at METRO PROPERTIES) and Christian Schröder (until now Regional Director Center Management at ECE). The planned merger is subject to the approval by the pertinent antitrust authority. A decision in this regard is expected by the end of September. The real estate subsidiary of METRO GROUP - formerly METRO Group Asset Management - was recently renamed METRO PROPERTIES.
METRO PROPERTIES is the real estate entity of METRO GROUP and responsible for optimising the complete real estate portfolio. With 688 commercial locations in 30 countries, METRO GROUP owns the largest international portfolio of wholesale and retail properties. METRO PROPERTIES is responsible for the active real estate management in Europe and Asia and for the development and construction of commercial property. Outside Germany, especially in Eastern Europe, the company also provides facility management services for external commercial, office and warehouse locations. In 2010, the Real Estate Segment generated EBIT before special items of € 698 million.
ECE – A strong Partner
Since 1965, ECE has been developing, planning, realising, leasing and managing large shopping centers with now 137 shopping malls under its management and activities in 16 countries. In all ECE centers taken together, around 15,000 retail tenants generate annual sales of around € 15.3 billion on a sales area totalling around € 4.4 million square meters.