Eurocommercial Properties NV signed a binding deal to sell four Italian properties under its asset rotation program to Immobiliare Grande Distribuzione SIIQ SpA for a total of €187 million.
The deal, which will be finalized in the spring of 2018, involves Centro Commerciale Lame in Bologna, La Favorita in Mantova, Centroluna in Sarzana and Centro Commerciale Leonardo in Imola. The properties offer a total leasable area of nearly 37,500 square meters and are expected to generate a gross yield of 6.8% for Immobiliare Grande.
Eurocommercial will use the proceeds to partially fund its purchase of the Woluwe Shopping Centre in Brussels, for which an agreement is anticipated to be signed in early 2018. The company added that it received €180 million from three prior sales deals, comprising one in France and two in Sweden.
Separately, Immobiliare Grande has proposed a preemptive rights issue of up to €150 million to existing shareholders in one or more issuances. The funds will be channeled toward funding a portion of the acquisition of the assets, as well as for lowering indebtedness. Coop Alleanza 3.0 has committed to subscribe to approximately 40.92%, or about €61 million, of the capital increase, which is subject to an approval by shareholders.
Banca IMI, BNP PARIBAS and Morgan Stanley will act as joint global coordinators and book runners for the issuance.
In addition, the company is also planning to carry out a reverse stock split of its ordinary shares, at a ratio of 1 new ordinary share for 10 existing ordinary shares.