French insurance group Scor has diversified its property portfolio with the acquisition of a majority stake in local real estate investment trust MRM.
French insurance group Scor has diversified its property portfolio with the acquisition of a majority stake in local real estate investment trust MRM.
As part of the deal, Scor will inject between €41 and €54 mln in the company through a capital increase which will give it up to 59.9% of the share capital of MRM.
In a statement, the company said the acquisition was made with a view to refocusing MRM's business on the retail sector and divesting the office assets.
MRM currently owns a portfolio of around €270 mln, equally split between retail and offices. The company is managed by CBRE Global Investors.
'The new strategy that Scor would like to implement for MRM aims to improve the occupancy rate of its assets, to bring the debt ratio back to a reasonable level in order to avoid any liquidity problems in the medium term, and to restore the profitability of the company,' Scor said.
The transaction is due to be completed by the end of the second quarter of 2013.
''This transaction enables Scor to take control of a company holding a retail property portfolio, with strong potential for increasing value thanks to the new business plan, and to benefit from the opportunities on the real estate market presented by the current economic and financial climate,' said François de Varenne, CEO of Scor Global Investments.
