French REIT Altarea Cogedim and Allianz Real Estate have established a long-term partnership on a portfolio of five French retail assets held and managed by Altarea.
French REIT Altarea Cogedim and Allianz Real Estate have established a long-term partnership on a portfolio of five French retail assets held and managed by Altarea.
The alliance will run for an initial term of 10 years, renewable every five years thereafter, Altarea said.
The portfolio includes Bercy Village, Toulouse-Espace Gramont, Les Boutiques Gare de l’Est and Genevilliers-Espace Chanteraines, as well as the Toulon-La Valette development project, representing a total asset value of over €800 mln.
Under the partnership, the German insurance companies of the Allianz group will take a 49% minority stake in each of the assets, for a total investment of €395 mln. Altarea Cogedim will continue to control and manage the assets, which will remain fully consolidated in the group’s financial statements.
Altarea Cogedim said the transaction will enable it to reduce its debt and unlock ‘significant’ financial resources for reinvestment.
The company also reported funds from operations (FFO) fell 1.3% to €69.9 mln in the first half of 2013 on revenues up 8.2% at €787.6 mln compared with the year-earlier period.
Net asset value per share – after dilution resulting from the share issue associated with the absorption of Areal – slipped to €137.9 compared with end-2012. The Loan to Value dropped 170 bps to 47.6%.
