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.