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 ...
Essen (Germany) -
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
12.12.2007
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
end of announcement euro adhoc
Further inquiry note:
Detlef Neveling
Phone: +49 (0) 201 727-9816
E-Mail: detlef.neveling@arcandor.com
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