Generali Real Estate has completed, on behalf of two Generali Group entities, the acquisition of a portfolio of 53 assets operated by Monoprix, the French high street retailer, for approximately €600 million.
This operation allows the company to further strengthen and diversify its presence in France by adding a portfolio that offers long term secured revenues and a balanced geographical diversification in prime locations, with around 47% of the value from assets located in Paris, 27% in Paris Region, and the remaining 26% in other cities across France.
The deal was financed by three major French banks, Société Générale, Crédit Agricole CIB and Natixis. Generali Real Estate was advised by PwC, Catella, Workman Turnbull, DLA PIPER, De Pardieu Brocas Maffei AARPI and Etude Oudot.
Following this acquisition, Generali Real Estate’s portfolio under management in France is worth around €9.5 billion, out of a total of nearly €30 billion at a global level as of year-end 2018.
Monoprix owner Casino confirmed that it had finalised with Generali and AG2R La Mondiale the sale of respectively the walls of 53 and 14 stores under the Monoprix brand. After deduction of the registration fees, the total amount of these transactions amounts to €742 million, for a total annual rent of €35.4 million.
With the completion of these operations, which bring asset disposals to €1.1 billion, the Casino Group has exceeded the target of disposals at the end of 2018, set on 11 June, the company said.
In addition, the Group confirmed that it had achieved all of its 2018 objectives, stating: “The continuation of good operational performances and the progressive deployment of new profitability levers (new alliance with Horizon purchases, continued monetisation of data, accelerated external development of Green Yellow) will enable the Casino Group to improve its current operating income in France in 2019 at a rate comparable to that of 2018, including the effect of additional rents.”
RPA Perspective The move comes as, after snubbing Paris for decades, Leclerc is opening a second store in the capital. It will open a ‘pedestrian drive’ store next week called E. Leclerc Relais, where customers will collect online orders by foot rather than car (the popular Drive format).
For Leclerc, it's a new attempt to win the battle for Paris, after its first store and especially the opening in the spring of 2018 of its site Chez Moi Leclerc.
Michel-Édouard Leclerc said in September: "Ten years ago, I did not believe that a price offer E Leclerc was possible in Paris given the operating expenses of the stores. But today, it can become less expensive to deliver in a building than to sell in stores.”
The battle will be tough, Carrefour has deployed a dozen pedestrian drives, Monoprix has partnered with Amazon and Intermarché has installed lockers.
