130
130
  • Transaction / Assets
    Sonae Regains Control of Sonae Sierra
  • Seller
    Grosvenor
  • Buyer
    Sonae SGPS
  • € MM
    255

Sonae Regains Control of Shopping Centre Business

14 July 2018

The Grosvenor Group sold a 20% stake in Sonae Sierra for an estimated 255 million euros.

Sonae SGPS announced Saturday that it reached an agreement with the Grosvenor Group to acquire 20% of Sonae Sierra, a company specialising in real estate in the retail sector, principally in shopping centres with a significant international presence. Since 2006, Sonae Sierra was equally owned (50%) by the two groups.

According to an announcement by Sonae, “the agreement provides for the acquisition of 20% of the company’s outstanding capital for the estimated 255 million euros. Sonae will control 70% of the Sonae Sierra after the conclusion of the transaction.”

The partnership with Grosvenor was one of the few businesses in which Sonae’s founder, Belmiro de Azevedo, agreed to share capital. The recovery of control of the company is occurring under the son, Paulo Azevedo, who has developed a capital-light strategy, through the creation of joint ventures, without requiring majority control, and the use of franchising agreements.

The group led by Paulo Azevedo said that Grosvenor, one of the largest private companies in the real estate industry, “will continue to be Sonae’s strategic partner in Sonae Sierra” and that the right to withdraw is guaranteed in line with its future condition as a minority shareholder.”

Sonae, which owns Público, said that the acquisition would allow it to strengthen “its position and influence in a leading company in the sector” and increase “the group’s international profile.” The reason for Grosvenor’s sale of the stake was not revealed.

According to the statement, “Sonae Sierra manages and co-owns 46 shopping centres in Europe and South America, with 1.9 million square meters of Gross Leasable Area (GLA) and a market value of seven billion euros. The company is present in 12 countries, has more than 9,300 contracts with tenants, manages shopping centres that received more than 438 million visits last year and was one of the most lauded companies in the sector in the area of ​​sustainability.”

The conclusion of the transaction, which takes place at a time when real estate assets are rising sharply, “is still subject to evaluation and approval by the relevant competition authorities.”

In 2017, the Sonae Group had a consolidated turnover of 5.71 billion euros, up 7.1% over the previous year.

Original Story: Público – Rosa Soares

Photo: Nelson Garrido

Translation: Richard Turner