Altarea—APG— Predica consortium acquires Aldeta, owner of cap 3000 shopping mall, from Galeries Lafayette

June 30 2010

Having entered into exclusive negotiations on 27 April 2010, Altarea, a REIT focused on shopping centres and a multi-product developer, in association with Dutch pension fund ABP, and Predica, Crédit Agricole Assurances’ personal insurance subsidiary, finalised an agreement on 7 May 2010 concerning the transfer of ownership of Aldeta by the Galeries Lafayette Group. 

Altarea, ABP and Predica will acquire the Cap 3000 Regional Shopping Centre in Saint-Laurent du Var (Alpes-Maritimes), the only property owned by Aldeta, via AltaBlue, with each partner holding one-third of share capital.

Under the agreement, AltaBlue will pay cash, based on a price of €11.08 per share, which may be adjusted according to the definitive financial statements to 30 June 2010, for all of the Aldeta shares
owned by the Galeries Lafayette Group, representing around 99.82% of the company’s share capital. The agreement provides for an exceptional dividend of around €3.97 per share before ownership is
transferred. The deal values Cap 3000 at €450 million, representing an initial net yield of 4.65%.

The acquisition going ahead is subject to the usual conditions precedent, including in particular approval from the relevant anti-trust authorities.

Once ownership of the controlling block has been transferred, AltaBlue will submit a proposed takeover bid to the Autorité des Marchés Financiers for the remaining Aldeta shares in accordance with applicable regulations at a price of at least €11.08 per share.

Cap 3000, France’s eighth-largest shopping centre, is a “core” shopping centre offering a yield per square metre of selling space of over €11,000 per year and an affordability ratio of around 9%. Thanks
to its exceptional location within a catchment area in which it is undeniably one of the main shopping centres, Cap 3000 offers significant potential to enhance its potential rental value and extend its selling space. This acquisition constitutes a strong sign for the investment market, which is showing clear signs of long-term investor confidence in the shopping centre sector.

Philippe Houzé, Chairman of the Management Board of Galeries Lafayette, states, “With the Galeries Lafayette department store and Lafayette Gourmet, our Group will remain the key player in the Cap 300 shopping centre. We are pleased to be entering this partnership with Altarea, Predica and ABP and are counting on their expertise to develop Cap 3000 and enhance its commercial potential, ensuring that it remains the destination of choice in the Cote d’Azur region.”

Altarea Cogedim is thereby continuing with its investment plan, taking a dynamic and secure approach. “With the acquisition of Cap 3000 and our recent investment in developing the shopping centre in
Villeneuve-la-Garenne, Altarea has demonstrated its ability to position itself in regional shopping centres offering considerable potential, fully in keeping with our general strategy based on the ability to create value through the management and ownership of properties of this kind. More than ever, shopping centres are the group’s main focus,” comments Alain Taravella, Chairman and Founder of the Group. 

Bernard Michel, CEO of Crédit Agricole Assurances, adds: “The investment project is part of Predica’s real estate investment policy, which in 2010 is focused squarely on market opportunities for high quality assets. We feel that CAP 3000 meets those objectives perfectly. It is unique in both the French and European commercial real estate sectors.”

Patrick Kanters, Managing Director Global Real Estate of ABP’s asset manager: “The acquisition of CAP 3000 is yet another example of our strategy to co-invest alongside companies in which it already holds a substantial interest. We are pleased to make our first investment alongside Altarea, together with Predica. We believe this partnership offers the right mix of financial resources and property development skills. It ensures that CAP3000 will remain the preeminent shopping center of the Cote d’Azur and, hence, a successful investment for ABP.”

Within the context of this deal, Galeries Lafayette has been advised by HSBC and Baker & McKenzie and the report by 14 Pyramides. The buyer (Altablue) has been advised by De Pardieu Brocas Maffei, Accuracy, the report by solicitors Dechin and DTZ Eurexi. Predica has been advised by Herbert Smith & Associés and Crédit Agricole Corporate Investment Bank, and ABP by Jones Day.

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PR Predica-Altarea-ABP-Predica consortium signs agreement to acquire Aldeta 05-07-2010