Home / Knowledge / News / Unibail-Rodamco buys interest in German shopping centres‎
Unibail-Rodamco buys interest in German shopping centres‎
18
Jun '12
Unibail-Rodamco announces that it has signed an agreement with Perella Weinberg Real Estate Fund I (PWREF) to acquire a 51% stake in the holding company owning 90.4% of “mfi AG”, Germany’s second largest shopping centre operator, investor and developer. In addition, the Group has agreed to acquire from PWREF 50% of Ruhr-Park, one of the largest shopping centres in Germany.

The total value of underlying real estate assets within the scope of the transaction amounts to €1.5 Bn, to which should be added an estimated development pipeline of €530 Mn. It encompasses 10 standing and future shopping centres, representing 608,291 m².

The total purchase price paid by Unibail-Rodamco for its equity participation in the transaction amounts to €383 Mn to be paid in 2 installments: €316 Mn upon closing and €67 Mn as of June 30, 20141.

The transaction includes:

- The acquisition of a 51% stake in the holding company, which holds 90.4% of “mfi AG”, for €297 Mn. The total enterprise value of “mfi AG” amounts to €1.1 Bn, corresponding to a NIY2 of 5.5% and an average price/m² of €4,636/m² for the 5 standing assets3;

- The acquisition of a 50% stake in the Ruhr-Park shopping centre, for €86 Mn, representing a 100% asset value of €380 Mn. This reflects a NIY2 of 4.8% and an average price/m² of €3,435/m².

The agreement signed with PWREF provides:

- A put option for PWREF on all of its 49% stake from July 1, 2014 until March 31, 2017 at a fixed price of €288 Mn;

- A right of first offer for both shareholders;

- A carried-interest for Unibail-Rodamco at PWREF exit, depending upon value creation over the period.

Unibail-Rodamco and PWREF also agreed to work in partnership for future investments in Germany with the ambition to create a major player in the shopping centre segment:

- Future shopping centre developments to be exclusively performed by jointly controlled “mfi AG”;

- “mfi AG” to act as exclusive property manager for future standing assets acquired;

- Future acquisitions of standing shopping centres or development projects to be done by “mfi AG” or directly by Unibail-Rodamco and PW Real Estate funds.

Unibail-Rodamco and PWREF will have joint control4 of “mfi AG”. Unibail-Rodamco will have the option to gain full control of “mfi AG” between June 30, 2014 and January 1, 2015 through change in governance.

Germany has the highest GDP in the Eurozone with a 60 bps per annum growth overpeformance since 2005. The German economy benefits from strong fundamentals with low household indebtedness, low unemployment and expected wage growth which are expected to drive consumption growth. The German market is one of the most sought after markets for retailers and offers one of the lowest shopping centre density in Europe with 130 m² GLA per 1,000 inhabitants compared to 249 m² GLA5 per 1,000 inhabitants on average in Europe.


Must ReadView All

Textiles | On 20th Jul 2017

Provide safety net for cotton growers: Congress to Trump

A bipartisan Congressional coalition has called attention of...

Courtesy: ITMF

Textiles | On 20th Jul 2017

ITMF'17 themed on tech, trade, climate in disruptive times

The International Textile Manufacturers Federation (ITMF), an...

Textiles | On 20th Jul 2017

RIL’s Q1 FY18 petrochemicals revenue up 22.9% y-o-y

Reliance Industries Limited (RIL) has reported its financial...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X