Arcandor AG

euro adhoc: Arcandor AG
Strategic management decisions
Ad hoc notification in accordance with § 15 of the German Securities Trading Act: Arcandor AG: LOI to sell 49 % interest in real estate joint venture Highstreet signed -Strategic alliance ...

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Essen (Germany) - December 12, 2007. Essen-based Arcandor AG has signed a letter of intent (LOI) to sell its 49 per cent interest in the real estate company "Highstreet". It will be acquired by a bidder consortium of RREEF, the alternatives investment management arm of Deutsche Asset Management, Milan-based Pirelli Real Estate and Borletti Group. The total value of the transaction, comprising the sale of the interest in Highstreet and the termination of the existing Joint Venture, is expected to amount to EUR 800 million. Accordingly Arcandor will part from the entire department store real estate portfolio and in the future will only appear as the tenant of the operating units. A further essential component of the agreement is a one-off annual increase in the department store rent of EUR 20 million.

Arcandor has thus managed to successfully negotiate a complex transaction under attractive conditions, despite an extremely difficult market environment.

Furthermore, in a letter of intent (LOI), Arcandor and the before mentioned syndicate have concluded a strategic alliance for the department stores in the Premium Group through mutual investments. The consortium of RREEF, Pirelli RE and Borletti Group will hold an interest of up to 25 per cent in Karstadt´s Premium segment. Karstadt is to assume an interest of up to 25 per cent in the La Rinascente (Italy) and Printemps (France) department store chains. One representative of each partner is to occupy a seat on the supervisory boards of Karstadt and La Rinascente/ Printemps.

The aim of the alliance is to create a unique European department store portfolio in the Premium segment and to leverage the high synergy potential. A further goal is clear market leadership in Europe´s luxury segment.

The Management Board

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ots Originaltext: KarstadtQuelle AG
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Further inquiry note:
Detlef Neveling
Phone: +49 (0) 201 727-9816

Branche: Retail
ISIN:      DE0006275001
WKN:        627500
Index:    Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
              Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / regulated dealing
              Börse Hamburg / regulated dealing
              Börse Stuttgart / regulated dealing
              Börse Düsseldorf / regulated dealing
              Börse Hannover / regulated dealing
              Börse München / regulated dealing

Weitere Meldungen: Arcandor AG

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