This is a transformative operation in which FREY holds a majority interest. It creates value for a portfolio of retail assets developed by FREY while also optimizing its capital allocation and freeing up shareholders’ equity, which will then be reinvested in new growth projects.
A portfolio of attractive, first-rate retail assets
The partnership concerns a portfolio of mature retail real estate assets with a total GLA of more than 92,800 m2 that FREY has developed and operated from the very outset. It consists of three major shopping destinations:
Shopping Promenade Cœur Picardie located in Amiens (Picardy) with a surface area of 38,097 m², opened in 2017 and hosting 45 brands
Green7 located in Salaise-sur- Sanne (Isère) with a surface area of 25,870 m², opened in 2012 and hosting 34 brands.
BeGreen located in Troyes (Aube) with a surface area of 28,897 m², opened in 2013 and hosting 33 brands.
Under the agreement, FREY has transferred this portfolio to the partnership for a total value of over €170 million excluding transfer tax, a valuation in keeping with the latest appraisal values.
The partnership vehicle is being financed by means of a 7-year mortgage totalling €86.5 million arranged with a banking pool made up of Crédit Agricole Corporate & Investment Bank, LCL and Société Générale.
Optimized capital allocation to foster stronger growth
This operation enables FREY to fulfil several of the objectives set out in its growth plan:
- To strengthen its balance sheet and liquidity position;
- To consolidate ties with key players in the real estate investment universe;
- To capitalise on its expertise in managing and developing retail parks;
- To free up shareholders’ equity, which can then be used for future investments that will create value for shareholders.
FREY will own a 51% interest in this joint venture which will be fully consolidated in its consolidated financial statements, reflecting the Group’s continued strategic and operational control over the assets and the value they create.
