The Hamburg-based fund company Union Investment has sold the 'Les Grands Prés' shopping centre in Mons, Belgium, as part of a share deal. The purchaser of the retail property is the listed Dutch real estate company Eurocommercial Properties, which focuses operationally on shopping centres. The purchase price for all shares in the property amounts to around EUR 265 million. The sale represents the highest-volume shopping centre transaction in the Belgian market since 2018. Completion of the transaction is expected to take place on 4 November.
The shopping centre was acquired in 2004 shortly after its completion for approximately EUR 109 million for the open-ended real estate retail fund UniImmo: Europa. Over the 22-year holding period, the asset underwent continuous development. Between 2014 and 2016, Union Investment invested around EUR 70 million in a comprehensive modernisation and expansion. In the process, 8,200 square metres of retail space and a new IKEA store were added.
Strategic portfolio rejuvenation and performance contribution
As Roman Müller, Head of Investment Management Retail at Union Investment, explained, turnover at the site increased by more than 30 per cent compared to pre-pandemic levels in 2019. The disposal was carried out on strategic grounds to rejuvenate the fund portfolio according to plan. In future, the focus will increasingly be on more fungible assets with small to medium lot sizes. Müller emphasised that the successful sale makes a significantly positive contribution to the performance of UniImmo: Europa and sustainably strengthens the fund's liquidity position.
Built in 2003, the 'Les Grands Prés' centre is situated south-west of Brussels in the immediate vicinity of the French border and forms part of an established commercial agglomeration. The property currently comprises around 100 retail shops across a total area of 26,900 square metres and is almost fully let.
Key data and advisory mandates of the transaction
- —Property: 'Les Grands Prés' shopping centre in Mons with 26,900 square metres of lettable area and around 100 shops
- —Purchase price: Around EUR 265 million as part of a full share disposal
- —Purchaser: Eurocommercial Properties, a specialised property company based in the Netherlands
- —Transaction advisory: JLL and Ceusters acting as brokers, with Linklaters and Clifford Chance advising on legal and tax matters
Union Investment was supported in the preparation and execution of the sales process by property service providers JLL and Ceusters, with the latter also responsible for the long-standing on-site centre and property management. Legal and tax advice for the vendor was provided by the law firms Linklaters and Clifford Chance.
