Eurocommercial announced that it was in advanced discussions for the sale of the 8,115 m² Passy Plaza shopping center in Paris. Eurocommercial signed a contract on 4 June 2013 to sell Passy Plaza to an institutional insurer at a price of €141 million, 4.7% above its December 2012 valuation. The sale is expected to complete at the end of September 2013. Eurocommercial bought the center in 1999 and has achieved an internal rate of return of 15% per annum since then. Jones Lang LaSalle advised Eurocommercial on this transaction.
Some of the proceeds from the sale will be reinvested in the previously announced acquisition of the 23,400 m² Val Thoiry shopping center and Leroy Merlin brico store which are located in the ‘Grand Genève’ area of France, one km from the Swiss border. The purchase of Val Thoiry from Vastned Retail N.V. was completed on 13 June 2013 for a gross cost of €111.5 million, representing a net initial yield of 5.6%. This purchase is being funded through the use of short term credit lines which will be repaid once the sale proceeds for Passy Plaza are received. Work is starting immediately on the refurbishment of the center and on designs for a significant expansion, subject to all the usual planning consents.