Spanish property company Metrovacesa has agreed to sell its remaining 27 percent in French listed company Gecina, which owns a €10.8 billion French portfolio, to a group of investors including Blackstone, Ivanhoe Cambridge and Norges Bank.
In a statement issued on Friday, Gecina said it had become aware of a transaction agreed between Madrid-base Metrovacesa – which took over the French company in 2005 for €5.18 billion – and that the deal was set to be sealed between the end of July 2014 and the end of September.
New York's Blackstone and Canadian pension fund Ivanhoé Cambridge are acting together and are increasing their stake by 6.92 percent having agreed to buy 4.35 million shares. Blackstone and Ivanhoe Cambridge already own 23.03 percent, but in a statement, they said: “Having no intention to hold 30 percent or more of Gecina’s share capital and voting rights, (the concert) will, before the fulfilment of the conditions precedent, sell the appropriate number of shares if required.”
In addition, a Blackstone affiliate has agreed to buy 1.46 percent of shares, Norges Bank has agreed to buy 9 percent, and Crédit Agricole Assurances, 4.68 percent.
Together the investors are paying €92 per share for a total of 16.8 million shares, implying a deal valued at €1.55 billion.
Gecina is a French real estate investment trust (SIIC) listed on Euronext Paris stock exchange that owns, manages and develops property holdings worth €10.8 billion, with 90 percent of that located in the Paris region.
It said it was “pleased with the agreements”, which would “make it possible to continue putting in place a new shareholding structure, confirming the relevance of the strategy implemented by the company”.