Mercialys Enters Negotiations on $140M Sale

PARIS-French retail REIT/SIIC Mercialys, a listed unit of the Casino supermarket group, said it has entered exclusive negotiations on the sale of $140 million of assets by the end of the year. Mercialys said it expects the disposals to realized at an average cap rate of around 6.5% and a total value in line with end-June appraisals, giving a net capital gain of some $40 million.

The assets are mainly service malls, food stores, restaurant buildings and co-ownership lots. The group’s portfolio was estimated at about $3.5 billion at the end of June and the portfolios under negotiation represent 4% of its assets. Mercialys said in August that it planned to start disposing of mature assets from the end of the year, after a period in which it has concentrated on holding onto and developing properties.