URW, Credit Agricole and La Francaise form €2bn retail portfolio JV (FR)

URW, Credit Agricole and La Francaise form €2bn retail portfolio JV (FR)

Unibail-Rodamco-Westfield (URW) has received binding offers from a consortium of leading French investors comprised of Credit Agricole Assurances and La Francaise (collectively, the Consortium) to acquire a stake in a new JV to be formed, in which the Consortium will hold 54.2% and URW 45.8%. The new JV will own the following five French shopping centres: Aéroville, So Ouest, Rennes Alma, Toison d’Or and Confluence. These five assets represent 320,800m² of GLA with footfall of 42.5 million in 2019.


Shopping Centre City/Region Complex GLA
URW consolidated GLA
FY19 footfall
Aéroville Paris region 84,900 84,900 9.2
So Ouest Paris region 56,900 52,100 7.6
Rennes Alma Rennes 46,500 32,500 7.2
Toison d’Or Dijon 78,700 49,200 8.3
Confluence Lyon 53,800 53,800 10.2


URW will continue management of these assets on behalf of the JV through long-term management contracts. This portfolio offers solid organic rental growth and significant upside from identified projects. The implied offer price for the assets at 100%, €2bn, is in line with the last unaffected appraisal value and represents a net initial yield of 4.80%. As part of the transaction, a syndicate of banks has underwritten €1bn in secured financing for the JV. Net proceeds to URW are expected to amount to €1.5bn. 


“This transaction is fully aligned with URW’s strategy and is a major milestone in the Group’s disposal programme, as well as a tremendous opportunity to establish a long-term partnership with leading investors who recognize the quality and attractiveness of our shopping destinations. We are thrilled to form this strategic partnership with Credit Agricole Assurances and La Francaise and look forward to working on future growth opportunities with our partners. Our expertise as operators is recognized as we will continue managing the assets owned by the newly formed JV”, said Christophe Cuvillier, Group CEO of URW.

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