Home Progressive Grocer Carrefour Signs MoU with Klepierre to Acquire 127 Shopping Malls in Europe

Carrefour Signs MoU with Klepierre to Acquire 127 Shopping Malls in Europe

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French retailer has announced plans to create a company for shopping malls adjoining its hypermarkets in Europe to recreate an ecosystem that integrates all the components of each commercial site for the benefit of its customers.

The project will lead to the creation of a company that will include 172 shopping malls originating from firstly, the acquisition from for €2.0 billion of 127 sites in France, Spain, and Italy with gross annual rental income of around €135 million, and from the contribution by Carrefour of 45 shopping malls in France with a value of €0.7 billion and gross annual rental income of around €45 million. With over 800,000 sq. m of retail space, assets of €2.7 billion and a value-creating renovation and extension plan, the company is likely to rank among the leading European shopping mall companies.

According to Carrefour officials, the company will be financed through €1.8 billion in equity, 42 percent held by Carrefour with the remainder held by institutional investors, as well as through €900 million in debt. The transaction, which remains subject to final agreement between the parties and the approval of the relevant regulatory authorities, will be submitted for consultation to employee representative bodies and is likely to close in the first half of 2014.