METRO GROUP places second real estate fund

29 September 2011

METRO PROPERTIES, the real estate company of METRO GROUP, has contributed 20 Italian locations of the sales division Metro Cash & Carry to a closed-ended real estate fund named "M Due" and completely divested all fund shares to institutional investors. The gross proceeds from the transaction amount to approximately €300 million and the EBIT contribution before portfolio measures and valuation effects exceeds €100 million. 

"The divestment of the locations via the real estate fund "M Due" forms an integral part of our active portfolio strategy that is oriented towards a long-term value enhancement of all real estate assets of METRO GROUP", said Thomas Ziegler, CEO of METRO PROPERTIES. "With the proceeds from the transaction we will finance acquisitions of new locations in the emerging markets in Eastern Europe and Asia and thereby contribute to accelerating the international expansion of METRO GROUP. Presently, we are examining whether we will also launch real estate funds in other European countries". 

Business of Metro Cash & Carry is not affected by the transaction. The Italian subsidiary of Metro Cash & Carry leased back the 20 wholesale stores which are mainly located in northern and central Italy under long-term lease agreements. Already last year, METRO PROPERTIES had contributed 20 store locations to a fund named "Venti M" and placed it with institutional investors. 

The new "M Due" fund will be managed by the French bank BNP Paribas. Banca IMI from Italy acted as leading advisor. 

METRO GROUP is one of the largest and most international retailing companies. In 2010 the Group reached sales of around € 67 billion. The company has a headcount of some 280,000 employees and operates more than 2,100 stores in 33 countries. The Group's performance is based on the strength of its sales brands which operate independently in their respective market segment: Metro/Makro Cash & Carry - the international leader in self-service wholesale, Real hypermarkets, Media Markt and Saturn - European market leader in consumer electronics retailing, and Galeria Kaufhof department stores.