25 November 2021 14:47

The sale of a portfolio of “stand alone” hyper/supermarkets closed

IGD SIIQ S.p.A (“IGD”) announces that today the definitive contract, in execution of the preliminary agreement entered into with Intermediate Capital Group (“ICG”, a global asset management company listed on the London Stock Exchange) disclosed to the market last 21 October, was signed.

The contract is for the sale by IGD of a real estate portfolio of hypermarkets and supermarkets for €140 million, in line with the book value at 30 June.

The portfolio comprises 5 hypermarkets (located in Livorno, Schio, Lugo, Pesaro and Senigallia) and 1 supermarket (in Cecina). All the properties sold are “stand alone” and not connected to IGD’s freehold malls which reflects the Group’s strategy to focus on full ownership of the shopping center (mall + hypermarket), allowing for greater flexibility and speed when responding to market changes and tenants’ needs.

The transaction was finalized by transferring the entire real estate portfolio to “Fondo Juice” – a closed end real estate alternative investment fund (an Italian AIF) managed by Savills Investment Management SGR S.p.A. – of which ICG will hold 60% of the quotas (Class A, with a preferential yield) through Corallo Lux Holdco S.a.r.l. (an ICG Group company) and IGD the remaining 40% (Class B, with a subordinated yield) [1].  The goal is to further enhance the portfolio over the next few years and sell it on the market at the best conditions possible.

Fondo Juice assumed debt of approximately €77 million, equal to 55% the value of the assets sold (obtaining the financing was a condition precedent stipulated in the preliminary agreement).

As a result of this transaction, IGD received roughly €115 million, net of the amount reinvested in Fondo Juice; these financial resources will allow the Group to reduce the Loan-to-Value (45.6% pro forma at 30 September 2021) and, together with the available liquidity, cover almost all financial maturities through 2022.

The deal was followed for all legal aspects by Orrick for IGD, DLA Piper for ICG and Galante & Associati for Savills.

The aspects related to the loan were followed by Orrick for IGD, ICG and Savills and Jones Day for the lenders.

The notarial activities of the deal have been followed by Milano Notai.

[1]The transaction’s yields will also depend on the market conditions at the time of exit from the vehicle,