Scor : SCOR diversifies its real estate investment portfolio by investing in
the listed real estate company MRM
08 March 2013
For more information, please contact:
Jean-Charles Simon / Géraldine Fontaine +33 (0) 1 58 44 75 58
Communications and Public Affairs
Antonio Moretti +33 (0) 1 58 44
Investor Relations Director
SCOR diversifies its real estate investment portfolio by investing in the
listed real estate company MRM
SCOR today concluded an agreement relating to an investment in MRM, a real
estate company subject to the French REIT regime ("régime des sociétés
d'investissements immobiliers cotées" or "SIIC") holding a mixed portfolio of
retail properties and offices, and the acquisition by SCOR of a controlling
stake in the company with a view to refocusing its activity towards a
consistent portfolio of retail assets.
The new strategy that SCOR would like to implement for MRM aims to improve the
occupancy rate of its assets, to bring the debt ratio back to a reasonable
level in order to avoid any liquidity problems in the medium term, and to
restore the profitability of the company.
In order to successfully achieve these objectives, the investment programme on
the assets kept in the portfolio will be conducted alongside a disposal plan
dealing more specifically with office buildings.
SCOR's investment, which takes the form of a cash capital increase of between
EUR 41 and 54 million, depending on the conversion rate of MRM bondholders, is
accompanied by the deleveraging of the company to achieve a sustainable
financial structure negotiated prior to SCOR's entry into the capital of MRM.
SCOR will hold a maximum of 59.9% of the capital of MRM upon the consummation
of the capital increase.
The transaction will be completed by the end of the second quarter of 2013,
subject to the fulfilment of the conditions precedent set out in the
agreement. SCOR's investment is in particular subject to the receipt of the
exemption provided for in article 234-9 2° of the AMF's General Regulation and
the approval of transaction by the general meetings of the MRM shareholders
François de Varenne, CEO of SCOR Global Investments, comments: "As part of its
asset allocation policy, and thanks to its strong expertise in terms of real
estate asset management, SCOR is strengthening and diversifying its real
estate portfolio with this investment, in accordance with the objectives of
the strategic plan Strong Momentum. This transaction enables SCOR to take
control of a company holding a retail property portfolio, with strong
potential for increasing value thanks to the new business plan, and to benefit
from the opportunities on the real estate market presented by the current
economic and financial climate."
MRM is a real estate company subject to the SIIC regime. MRM is listed on
compartment C of Euronext Paris (Bloomberg code: MRM:FP: - Reuters code:
MRM.PA). MRM holds a mixed portfolio of office and retail properties
comprising both mature and value-added assets. At 31 December 2012, the total
value of MRM's assets stands at EUR 269 million, of which EUR 154 million
consist of retail properties and EUR 115 million of offices.
Its asset portfolio has been gradually built up since the second semester of
2007 with the contribution of assets from Dynamique Bureaux and Commerces
Rendement, two investment companies created and managed by CBRE Global
Investors, and with acquisitions carried out directly by its subsidiaries.
MRM's real estate transactions are managed by CBRE Global Investors. MRM has
no employees as at 31 December 2012.
SCOR does not communicate "profit forecasts" in the sense of Article 2 of (EC)
Regulation n°809/2004 of the European Commission. Thus, any forward-looking
statements contained in this communication should not be held as corresponding
to such profit forecasts. Information in this communication may include
"forward-looking statements", including but not limited to statements that are
predictions of or indicate future events, trends, plans or objectives, based
on certain assumptions and include any statement which does not directly
relate to a historical fact or current fact. Forward-looking statements are
typically identified by words or phrases such as, without limitation,
"anticipate", "assume", "believe", "continue", "estimate", "expect",
"foresee", "intend", "may increase" and "may fluctuate" and similar
expressions or by future or conditional verbs such as, without limitations,
"will", "should", "would" and "could." Undue reliance should not be placed on
such statements, because, by their nature, they are subject to known and
unknown risks, uncertainties and other factors, which may cause actual
results, on the one hand, to differ from any results expressed or implied by
the present communication, on the other hand.
Please refer to SCOR's Document de référence filed with the AMF on 6 March
2013 under number D.13-0106 (the "Document de référence"), for a description
of certain important factors, risks and uncertainties that may affect the
business of the SCOR Group. As a result of the extreme and unprecedented
volatility and disruption of the current global financial crisis, SCOR is
exposed to significant financial, capital market and other risks, including
movements in interest rates, credit spreads, equity prices, and currency
movements, changes in rating agency policies or practices, and the lowering or
loss of financial strength or other ratings.
The Group's financial information is prepared on the basis of IFRS and
interpretations issued and approved by the European Union. This financial
information does not constitute a set of financial statements for an interim
period as defined by IAS 34 "Interim Financial Reporting".
SCOR Press Release
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Source: Scor via Thomson Reuters ONE
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