ARGAN has completed the acquisition of the "Cargo" portfolio of 1,100,000 m²
for an amount of 900 M € HD
Argan Acquires from CARREFOUR and a group of leading institutional investors SCI "CARGO", which owns 22 PREMIUM logistics platforms, at a price of € 898 million.
Pursuant to the agreement concluded on July 10, 2019 (and communicated the same day) the shareholders of the Company, meeting at the General Meeting on October 15, 2019, approved the contribution in kind of 22,737,976 shares of SCI Cargo made by CARREFOUR, CREDIT AGRICOLE ASSURANCES through its subsidiary ASSURANCE VIE and PRIMONIAL CAPIMMO, and its remuneration through the issue of 5,588,994 new ARGAN shares at a unit issue price of € 50 (including € 2 in nominal value) representing the sum of € 279 million .
ARGAN's share capital thus increased from € 33,245,950 to € 44,423,938 for 22,211,969 shares.
At the end of this operation, CREDIT AGRICOLE ASSURANCES became a shareholder of ARGAN up to 16.77%, CARREFOUR up to 5.21% and PRIMONIAL CAPIMMO up to 3.19%. The LE LAN family now holds 40.03% and the float represents 34.80%.
As a result of this contribution in kind, ARGAN paid € 619 million in cash for the acquisition of 50,348,380 shares of SCI Cargo, for a total of € 898 million HD, with the help of a bridge loan of € 645 million of which € 26 million. € will be used to pay part of the fees.
ARGAN will refinance this € 645m bridge loan with mortgage loans whose agreements with the credit committees of the banks concerned are obtained.
The Assembly also appointed Stephane CASSAGNE (Secretary General of the GEODIS Group), proposed by the LE LAN family and Najat AASQUI (Investment Officer) representing CREDIT AGRICOLE ASSURANCES, as members of the Supervisory Board.
Emmanuel CHABAS, (Head of real estate investments), proposed by CREDIT AGRICOLE, is appointed Censeur as well as CRFP8 proposed by CARREFOUR.
Following completion of the aforementioned contribution, the shareholders' agreement concluded between the LE LAN, CREDIT AGRICOLE ASSURANCES and CRFP 8 families came into force (see AMF notice no. 219C1208 dated July 18, 2019). .
PRESENTATION OF THE CARGO PORTFOLIO
The Cargo portfolio is composed of 22 PREMIUM logistics platforms in France, with an average age of 5 years, representing an area of approximately 1,100,000m², leased to Carrefour on the basis of leases with a residual average maturity of around 6 years to June 30, 2019.
The majority of these warehouses have been developed by Carrefour recently as part of the overhaul of its logistics network in France to serve all its store formats.
CONSEQUENCES FOR ARGAN: 60% HERITAGE GROWTH
At the strategic level, ARGAN acquires a portfolio of PREMIUM assets of the latest generation. These platforms are leased to Carrefour, a major player in global distribution, in historical and strategic activity pools for the group, and consolidates its position as the listed landmark in France dedicated to PREMIUM logistics platforms. .
With this acquisition, which represents 8 years of development, ARGAN is changing its size:
Ø His heritage is growing by more than 60%, from 1,740,000m² to 2,830,000m², for a valuation of 2.6Mds,
Ø Its annualized rental income is up 47%, from € 95M to € 140M,
Ø Its recurring income is growing by 52%, stronger than that of rental income, and represents 74% of the amount of rents.
The cost of debt is decreasing in relative terms, going from 1.90% to 1.65% thanks to the favorable conditions of the loans related to the refinancing of the acquisition.
Jean-Claude Le Lan, Chairman of the Supervisory Board and founder, said " The acquisition of this perfectly homogeneous warehouse portfolio with our own assets boosts our growth and improves our results.
This operation, probably the most important in this asset class ever carried out in France, is a step in the consolidation of the sector to which we will participate. "
Financial calendar 2019 (Release of press release after stock market)
- Thursday, January 2, 2020: Annual Turnover 2019
- Wednesday, January 15, 2020: Annual Results 2019
About Argan
ARGAN is the only French real estate company of PREMIUM WAREHOUSE DEVELOPMENT & RENTAL listed on Euronext.
It is responsible for the development, maintenance and rental management of its warehouses.
Its 60 warehouses located in France represent more than 1.7 million m² valued 1.7 billion euros at June 30, 2019, before acquisition of the Cargo portfolio.
ARGAN is listed on Compartment B of Euronext Paris (ISIN FR0010481960 – ARG) and is included in the CAC All-Share and IEIF SIIC France indices. The real estate company opted for the SIIC regime inst July 2007.
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https://www.zonebourse.com/ARGAN-53235/actualite/Argan-vient-de-realiser-l-acquisition-du-portefeuille-Cargo-de-1-100-000-m-pour-un-montant-de-9-29379064/
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