Unibail-Rodamco has entered into an agreement to acquire Simon Ivanhoe for €715 mln. Under the deal, Europe's largest listed real estate company will gain control of a portfolio of shares in seven shopping centers in France and Poland. Simon Ivanhoe is the jointly held European subsidiary of the Simon Property Group and Ivanhoe Cambridge.
Under a separate joint venture agreement with the Simon Property Group and Ivanhoe Cambridge, Unibail-Rodamco will jointly retain 50% of Simon Ivanhoe's interests in five retail development projects in France, including Les Portes de Gascogne in Toulouse which has been authorized. Unibail-Rodamco will develop these five projects on behalf of the joint venture.
Unibail-Rodamco said it expects to finalize the takeover of Simon Ivanhoe during the first half of 2010, subject to customary closing conditions and antitrust approval. The company will fund the acquisition from existing bank facilities.
Guillaume Poitrinal, Chairman of the Management Board and CEO of Unibail-Rodamco, said: 'This transaction represents a unique opportunity to reinforce further our presence in the large shopping center segment, in French and Polish capital cities. These assets and the development projects offer excellent growth prospects and we are pleased and honoured to be partnering with Simon Property Group and Ivanhoe Cambridge in those developments.'
The largest asset in the portfolio is Arkadia which complements Unibail-Rodamco's existing portfolio in Warsaw, Poland. The Arkadia shopping center opened its doors in October 2004 and is currently among the largest shopping centers in Central Europe, with a total retail area of 103,128 m².
Source: Unibail-Rodamco
