Klépierre S.A. and Corio N.V. announce that they have reached conditional agreement to create the leading pure play retail property company in Europe.
The transaction offers a unique value proposition to both Klépierre and Corio shareholders with gross asset value (“GAV”) in excess of €21 billion and wider combined footprint of prime shopping destinations in key strategic regions of Europe.
The combined group will operate 182 shopping destinations in 16 European countries, with a combined gross asset value of more than €21 billion. The combined portfolio will provide the ideal platform for further expansion of Klépierre’s know-how and positioning to retailers and brands, which in turn will support the objective of being recognized as the most effective shopping center platform across Europe.
Through the contemplated transaction, Klépierre will develop strong bases in three new countries (the Netherlands, Germany and Turkey), and reinforce its positions in France, Italy and Iberia. Corio assets in these regions are mostly located in dynamic urban hubs with strong and sustainable demographic growth (Grenoble, Marseilles, Amsterdam, Istanbul), and above average purchasing power (Rome, Turin, Rotterdam, Utrecht, Madrid, Berlin).
Laurent Morel, Chairman of the Executive Board of Klépierre said “The transaction we propose today will create the leading pan-European pure player retail property company, with an unrivalled footprint in Continental Europe, a consistent portfolio of leading shopping centers and a team of seasoned professionals with deep knowledge of regional retail markets. Leveraging the retail focus, complementary footprint and shared strategic vision of both groups, we will be better positioned to further implement and accelerate the reshaping of our portfolios and seize new development opportunities. We believe this is a unique opportunity to drive change in the retail landscape for the benefit of our clients and our customers, our employees and our shareholders.”
Gerard Groener, Corio CEO said “We are excited to be creating the leading pan-European pure player retail property company. Both companies firmly believe that all of our stakeholders will benefit from the proposed transaction. Size is becoming an increasingly decisive factor in the retail property market in order to create attractive shareholder returns over the long term and being able to compete for larger high-performing retail properties. The combined group is geographically complementary and will benefit from significant scale advantages, synergies and a solid financial position. I am confident it will play a leading role in further consolidating the global real estate investment industry.”
David Simon, Chairman of the Supervisory Board of Klépierre, will remain Chairman of the combined group.