WESTBROOK has submitted to GECINA a firm purchase offer on residential real estate assets owned by GECINA and SIMCO for a total amount of EUR 1.2 bln, conditional upon the success of the public offer initiated by GECINA on SIMCO. This offers includes an offer to retain employees of both companies.
Under this agreement, WESTBROOK undertakes to acquire a portfolio of GECINA’s residential assets worth some 600 million euros based on appraisal values (1) increased by 2.5% for a 6 month period. In return, GECINA has granted WESTBROOK an exclusivity period on such assets up to 31 December 2004. GECINA will call its workers’ council as soon as possible so as the council can be informed of WESTBROOK’s proposal and render an opinion on this project.
In addition, WESTBROOK will grant SIMCO an acquisition undertaking relative to a portfolio of SIMCO’s residential assets worth some 600 million euros based on appraisal values (1) increased by 5.0% for a 9 month period. In return, GECINA undertakes to ensure that SIMCO grants WESTBROOK a preemption right on said SIMCO assets up to 31 December 2004.
WESTBROOK’s proposal includes an offer to retain, in case the acquisition undertakings were exercised for all of the targeted assets, some 50 employees of the two groups, in addition to the employees who are dedicated to these assets, at conditions that are at least as favorable as those that are currently offered to employees of GECINA and SIMCO.
For GECINA and SIMCO, WESTBROOK’s offer allows to quickly realize the whole of the announced asset disposal programs, in line with the sum of the asset disposals contemplated by both groups by end 2004 in the context of the dynamic management of their investment portfolios and asset allocation optimization. It immediately guarantees GECINA and SIMCO an attractive price for the residential assets to be sold and allows them to embark sooner upon further development.
For more information please visit www.gecina.fr.
(source: Gecina)
