1 July 2019 7:46
Price Sensitive

Igd signs binding agreements for the sale of assets

  • Porta Medicea Srl (a wholly-owned subsidiary of IGD) will sell “Palazzo Orlando”, an office building, in Livorno
  • IGD will buy the joint interest held in the “Darsena City” Shopping Mall in Ferrara
  • IGD Management (a wholly-owned subsidiary of IGD) will buy 50% of the interest held in RGD Ferrara 2013 Srl
  • The agreements will allow IGD to focus on its core business

 Bologna, 1 July 2019 – IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD” or the “Company”), announces that on 28 June 2019 it signed binding agreements with a premiere international real estate player involving:

  • the sale by Porta Medicea Srl (a wholly-owned subsidiary of IGD) of “Palazzo Orlando”, an office building in Livorno, for €8 million (in addition to taxes);
  • the purchase by IGD of the 50% interest in the “Darsena City” Shopping Mall of which it is currently joint-owner;
  • the purchase by IGD Management Srl (a wholly-owned subsidiary of IGD), of the 50% interest held in the joint venture RGD Ferrara 2013 Srl – owner since 2013 of the Darsena City operations – of which IGD is currently joint-owner.

The IGD Group will pay a total of €13.9 million (in addition to taxes) for the two acquisitions.

Palazzo Orlando (part of a larger real estate development project, Porta a Mare, in Livorno) underwent significant restructuring in 2009 by Porta Medicea srl, which developed 17 offices covering a total of 5,270 m2.

The “Darsena City” Shopping Mall, in Ferrara, covers 2 floors for a total of 16,250 m2. Following the agreement reached, in April 2019, with WeArena for the construction of a leisure time/entertainment complex with a GLA of around 1,600 m2 on the first floor, the asset’s occupancy came to around 89%.

The definitive agreements will be executed by 30 September 2019

The agreements will allow IGD to focus on its core business (retail real estate).

More in detail, IGD will subsequently own all of the “Darsena City” Shopping Mall, which will create greater efficiencies in the management of the asset.

Furthermore, thanks to the sale of Palazzo Orlando (consistent with the disposal/asset rotation strategy called for in the Business Plan 2019-2021) the market sales of the Piazza Mazzini section of the Porta a Mare Project in Livorno (in addition to the offices, there are also residences, 72 out 73 of which to date are sold or pledged) are basically finished and the focus will now be on completing the Officine Storiche section, where work is currently underway.