PARIS, FRANCE: Altarea announced the launch of a capital increase with preferential subscription rights (PSR) for an amount of approximately €350 million.
Net proceeds of the offering of the new shares will be used by the Company as part of the financing of the acquisition of Primonial Securities, as announced on June 30, 2021.
The final agreements on the acquisition of 100% of the share capital for an enterprise value of €1.9 billion were signed on July 23, 2021 and Altarea confirmed the two-step acquisition planning: the acquisition of a 60% controlling stake to be completed in Q1 2022 and the acquisition of the remaining 40% to be completed by the end of Q1 2024.
Altarea also announced its intention to propose to the annual General Meeting called to approve the financial statements for 2021. The distribution of a €9.75 dividend per share in respect of the current financial year.
Through this transforming strategic transaction, Altarea steps up the implementation of its integrated model across the whole real estate value chain, by creating an unrivaled leader in Europe both in real estate investment and development.
Alain Taravella, Altarea Group Chairman and Founder said, “Altarea is now entering the final stage of the acquisition of Primonial announced last June, making Altarea the European independent leader in real estate investment and development.
Our Group’s growth will be driven by both the positive market trends in urban transformation market, where Altarea is already the leader, and the real estate asset management, in which Primonial is the leading European wealth and real estate asset manager. The operational profile of our Group will combine growth and resilience allowing us to target a potential fully diluted FFO Group Share of €18-20 per share by 2025.
In the short term, the Group is targeting, on its current scope, a FFO Group Share growth of around +10% in 2021 compared to 2020. Moreover, a dividend of €9.75 per share, including for the new shares created during the capital increase, will be proposed for the financial year 2021 at the General Shareholders’ Meeting that will approve the 2021 financial statements.
The purpose of this Capital Increase is to strengthen the Group’s Equity by up to c.€350 million in order to finance Primonial’s acquisition. 83.6% of the transaction is already covered by subscription commitments received from the main shareholders on the date of the approval of the prospectus. My Family Group commits to participate for an amount of around €169m.
More than ever, we have confidence in the Group’s perspectives, and it is entering a new growth cycle.”
Altarea is the leading property developer in France and leader in the urban transformation market. As both developer and investor, the Group operates in the three main property markets (Retail, Residential and Business Property), making it the leading developer of large mixed-use urban renewal projects in France.
The Group has the required expertise in each sector to design, develop, market and manage made-to-measure property products. Altarea is listed in Compartment A of Euronext Paris.
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