IGD Signs EUR 8.3 Mln Sale Agreement for Romanian Property

Italian real estate company IGD has signed an agreement to sell one asset from its Romanian portfolio for approximately EUR 8.3 million, in line with its book value. The sale is part of IGD's strategy to optimize its portfolio and align with its growth and expansion plans.

Italian real estate company IGD has announced the sale of one asset from its Romanian portfolio for approximately €8.3 million [1]. This transaction aligns with IGD's strategy to optimize its portfolio and support its growth and expansion plans.

According to IGD's latest announcement, the company signed agreements with global investment firms Sixth Street and Starwood Capital to sell a portfolio of 13 assets, valued at €258 million [1]. The portfolio includes 8 hypermarkets, 3 supermarkets, and 2 shopping malls, generating approximately €17 million in net annual rental revenues.

The sale of the Romanian asset for €8.3 million represents approximately 3.2% of the total portfolio value. This transaction is expected to contribute significantly to IGD's financial performance by reducing its indebtedness. According to the announcement, the proceeds from the sale will be used to repay existing loans, resulting in a decrease in IGD's leverage ratio by approximately 3.7 percentage points [1].

The transaction will be carried out through the establishment of a closed real estate investment fund called "Food Fund," which will be managed by Prelios SGR, one of Italy's leading real estate management and services companies [1]. The fund will be owned 60% by a Luxembourg vehicle, with equal stakes held by Sixth Street and Starwood Capital, and 40% by IGD.

This sale is part of a larger strategy by IGD to optimize its portfolio and focus on growth opportunities. In February 2024, IGD announced the sale of a similar portfolio of assets in Italy for €258 million [2]. This transaction, too, was carried out through the establishment of a closed real estate investment fund.

In conclusion, IGD's sale of a Romanian asset for €8.3 million is a strategic move that aligns with the company's goal of optimizing its portfolio and supporting its growth and expansion plans. This transaction is expected to contribute significantly to IGD's financial performance by reducing its indebtedness and generating proceeds that can be reinvested in growth opportunities.

References:
[1] IGD SIIQ SpA. (2024, February 23). IGD announces agreements for the sale of a portfolio of 13 real estate assets for a value of €258 million. Retrieved from https://sixthstreet.com/investment_announce/igd-signs-an-agreement-with-sixth-street-and-starwood-capital-for-the-sale-of-a-real-estate-portfolio/
[2] IGD SIIQ SpA. (2024, February 23). IGD announces the sale of a portfolio of 13 real estate assets for €258 million. Retrieved from https://www.prelios.com/en/newsroom/press-releases/2024/02/igd-announces-the-sale-of-a-portfolio-of-13-real-estate-assets-for-258-million/