{"id":56483,"date":"2024-06-04T09:30:40","date_gmt":"2024-06-04T07:30:40","guid":{"rendered":"https:\/\/www.gruppoigd.it\/?p=56483"},"modified":"2024-06-04T09:32:37","modified_gmt":"2024-06-04T07:32:37","slug":"an-important-step-along-the-path-to-a-stronger-financial-profile","status":"publish","type":"post","link":"https:\/\/www.gruppoigd.it\/en\/an-important-step-along-the-path-to-a-stronger-financial-profile\/","title":{"rendered":"An important step along the path to a stronger financial profile"},"content":{"rendered":"

The signing of the definitive agreement for the sale of a portfolio comprising 13 assets marks a fundamental step toward improving IGD\u2019s loan-to-value, which pro-forma reached 44.4%, significantly lower than the 48.0% recorded at 31 March 2024.<\/strong><\/p>\n

Thanks to the completion of this high-impact transaction, there is already evidence of the new Board of Directors\u2019 commitment to accelerating the repayment of the debt obtained at higher rates.<\/strong><\/p>\n

Let\u2019s take a look at the immediate benefits this transaction will bring, as well as the positive repercussions this deal might have for the future.\u00a0<\/strong><\/p>\n

 <\/p>\n

A disposal of \u20ac258 million which was close to book value\u2026<\/h4>\n

After the preliminary agreement signed on 23 February 2024, the sale<\/strong> of a portfolio comprising 13 assets (8 hypermarkets, 3 supermarkets and 2 shopping malls) which generate rental income of approximately \u20ac17 million per year, closed <\/strong>on 23 April 2024 at a total valuation of \u20ac258 million<\/strong>.<\/p>\n

The sales transaction, completed for an amount which is very close to the appraised value at year-end 2023, is consistent with the disposals called for in the 2022-2024<\/strong> Business Plan <\/strong>which aim to reduce<\/strong> the Group\u2019s financial leverage<\/strong>.<\/p>\n

As a result of the transaction IGD transferred the portfolio to a closed-end real estate investment fund<\/strong>, the \u201cFood Fund\u201d, established and managed by Prelios SGR. \u00a0No debt was transferred to the fund.<\/p>\n

\u00a0<\/em><\/p>\n

\u2026 generated a cash in of \u20ac155 million<\/h4>\n

IGD then sold 60% of the fund units<\/strong> (class A shares with preferred returns) to a Special Purpose Luxembourg vehicle (held 50% by Sixth Street and 50% by Starwood Capital) for \u20ac155 million<\/strong>. IGD maintained ownership of the remaining 40%<\/strong> (class B shares with subordinated returns).<\/p>\n

 <\/p>\n

The proceeds will be used entirely to repay high-cost debt<\/h4>\n

The \u20ac155 million received as a result of the sale, net expenses, will make it possible to repay<\/strong>:<\/p>\n

    \n
  • \u20ac90 million (therefore, around one third) of the bond issued on 17 November 2023;<\/li>\n
  • \u20ac62.5 million of the green secured loan;<\/li>\n
  • \u20ac0.71 million of the green unsecured loan.<\/li>\n<\/ul>\n

    These are three financial instruments which are currently having a significant impact on IGD\u2019s cash generation<\/strong>: which is also made clear by the FFO <\/strong>recorded in the first quarter of the current year.<\/p>\n

     <\/p>\n

    The sale is a sign that there could be an increase in market transactions going forward<\/h4>\n

    In addition to creating the conditions needed to reduce the cost of debt as of the second quarter of 2024, the characteristics of this transaction also bode well for the future<\/strong>.<\/p>\n

    The nature of the counterparties involved \u2013 large American players \u2013 testifies, in fact, to the renewed interest of international investors in the Italian retail segment<\/strong> and, in general, represents a guarantee of greater liquidity for real estate assets.<\/p>\n

     <\/p>\n

    IGD has the expertise to develop a budding third-party asset management business<\/h4>\n

    IGD was also granted a mandate by Prelios SGR for the project, property & facility management<\/strong> of the 13 properties sold: the goal is to enhance the portfolio over the next few years and then sell it on the market at the best conditions possible. This decision, in addition to generating commission income of approximately \u20ac600 thousand <\/strong>yearly and reducing operating costs (which, overall, should have an estimated positive impact on EBITDA of around \u20ac2 million), confirms the expertise that the Company is known for in the management of retail properties, as was the case when the Juice portfolio was sold in 2021. IGD already has active asset management mandates for 20 more assets.<\/p>\n

    This is a revenue line which does not absorb cash and, as it makes it possible to maintain a significant presence in property management, has potential for future development<\/strong>. By following an entrepreneurial and professional approach, interesting opportunities for interactions and partnerships with important market players could be created for IGD.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The signing of the definitive agreement for the sale of a portfolio comprising 13 assets marks a fundamental step toward improving IGD\u2019s loan-to-value, which pro-forma reached 44.4%, significantly lower than the 48.0% recorded at 31 March 2024.<\/p>\n","protected":false},"author":5,"featured_media":56485,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[210],"tags":[],"class_list":["post-56483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/56483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/comments?post=56483"}],"version-history":[{"count":1,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/56483\/revisions"}],"predecessor-version":[{"id":56487,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/56483\/revisions\/56487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media\/56485"}],"wp:attachment":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media?parent=56483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/categories?post=56483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/tags?post=56483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}