Unibail releases a major part of Coeur Defense - Unibail-Rodamco
Unibail releases a major part of Coeur Defense - Unibail-Rodamco
Unibail releases a major part of Coeur Defense - Unibail-Rodamco
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UNIBAIL RELEASES A MAJOR PART OF COEUR DEFENSE<br />
<strong>Unibail</strong> sells a 51% equity stake in SCI Karanis, the company that owns the <strong>Coeur</strong> <strong>Defense</strong><br />
<strong>of</strong>fice complex, to Whitehall funds (investment funds managed by Goldman Sachs).<br />
At the same time, <strong>Unibail</strong> sells to Goldman Sachs International Bank and Hypo Real Estate<br />
Bank International the subordinated loan <strong>of</strong> € 505 million that it had granted to SCI Karanis.<br />
The securitized mortgage loan ('CMBS') <strong>of</strong> € 820 million raised in December 2003 is<br />
unchanged. The whole financing structure remains non recourse against the shareholders <strong>of</strong><br />
SCI Karanis.<br />
This transaction is based on a valuation <strong>of</strong> Cœur <strong>Defense</strong> <strong>of</strong> € 1,345 million (compared to the<br />
appraisal value <strong>of</strong> € 1,325 million as at year-end 2003).<br />
Following the completion <strong>of</strong> this transaction, <strong>Unibail</strong>’s commitment to this <strong>of</strong>fice complex<br />
will be reduced to € 81 million. This amount corresponds to the 49% stake retained by<br />
<strong>Unibail</strong> in SCI Karanis, along with a <strong>part</strong>icipation <strong>of</strong> € 76 million in the subordinated loan to<br />
SCI Karanis.<br />
This transaction is consistent with the strategy set and implemented by <strong>Unibail</strong> for many<br />
years. This strategy is based on a value creation policy which can lead to the disposal <strong>of</strong> <strong>of</strong>fice<br />
assets which have largely benefited from this process. The Cœur <strong>Defense</strong> transaction is a<br />
significant illustration <strong>of</strong> this approach.<br />
<strong>Unibail</strong> started this project in 1997 and acquired the land in 1998. Delivered in 2001, <strong>Coeur</strong><br />
<strong>Defense</strong> is today 99% let. On completion, the total investment cost amounted to<br />
€ 665 million.<br />
<strong>Coeur</strong> <strong>Defense</strong> being a unique asset with exceptional real estate fundamentals, <strong>Unibail</strong><br />
decided to retain an interest in this flagship project. Thanks to its 49% stake in SCI Karanis,<br />
<strong>Unibail</strong> will continue to benefit from the long-term value creation potential <strong>of</strong> this complex.<br />
Furthermore, through its subsidiaries, <strong>Unibail</strong> will remain in charge <strong>of</strong> the asset management<br />
and the property management <strong>of</strong> <strong>Coeur</strong> <strong>Defense</strong>.<br />
This transaction provides <strong>Unibail</strong> with substantial financial resources. The company plans to<br />
return excess capital to its shareholders, unless a <strong>major</strong> investment opportunity in line with<br />
the Group’s strategy and financial performance criteria is to arise.<br />
BNP Paribas and Morgan Stanley have advised <strong>Unibail</strong> on this transaction. Goldman Sachs is<br />
the advisor <strong>of</strong> the Whitehall funds.<br />
Contact: Fabrice Mouchel - tel: +33 (0)1 53 43 73 03<br />
www.unibail.com<br />
July 8, 2004
APPENDIX 1<br />
Cœur Défense key data<br />
Located in the heart <strong>of</strong> the central business district <strong>of</strong> La Défense, Cœur Défense is the largest<br />
<strong>of</strong>fice complex ever built in France, totalling 182,000 square metres <strong>of</strong> which 159,000 square<br />
metres <strong>of</strong> <strong>of</strong>fice space. The architect is Jean-Paul Viguier.<br />
The building is let up to 99% to blue chip tenants such as Air Liquide, Axa Investment<br />
Managers, Cap Gemini Ernst & Young, CCF, Crédit Lyonnais, ING, Micros<strong>of</strong>t, People S<strong>of</strong>t,<br />
SIIF Energies, Société Générale and Wyeth.
APPENDIX 2<br />
PRESENT<br />
STRUCTURE<br />
Underlying value <strong>of</strong> the asset: € 1,325m<br />
Other net assets: € 10m<br />
STRUCTURE AFTER<br />
THE TRANSACTION<br />
Underlying value <strong>of</strong> the asset: € 1,345m<br />
Other net assets: € 10m<br />
Shareholder's Equity (€ 10m)<br />
Shareholder's Equity<br />
(Revalued : € 30m)<br />
Tranche C<br />
€ 55m<br />
<strong>Unibail</strong><br />
€ 27m<br />
<strong>Unibail</strong> + Whitehall funds<br />
49% 51%<br />
<strong>Unibail</strong><br />
Subordinated Loan<br />
€ 505m<br />
Subordinated Loan<br />
€ 505m<br />
Tranche B<br />
€ 300m<br />
Tranche A<br />
€ 150m<br />
<strong>Unibail</strong><br />
€ 37m<br />
<strong>Unibail</strong><br />
€ 12m<br />
<strong>Unibail</strong> has a <strong>part</strong>icipation <strong>of</strong><br />
€ 76m in the subordinated<br />
loan <strong>of</strong> € 505m acquired by<br />
Goldman Sachs International<br />
Bank and Hypo Real Estate<br />
Bank International<br />
NON RECOURSE<br />
FINANCING<br />
Securitisation<br />
December 2003<br />
Senior Loan<br />
€ 820m<br />
Senior Loan<br />
€ 820m<br />
Securitisation<br />
December 2003<br />
UNCHANGED
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