Europe No Longer A Unified Continent: Morel

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Dec. 16 (Bloomberg) -- Laurent Morel, CEO of Klepierre, discusses the sale of some assets by Klepierre and the focus of the company going forward. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Me about how your business has been going.

This allows us to concentrate and focus on what we prefer, which is to say the original malls.

We have 120 nine shopping centers, that is to say half of what we had.

We are concentrating on our best and our preferred regions, paris, south of france and scandinavia.

You think you got a good deal for this.

We sold those assets for appraisal value in france and italy with limited discount for spain.

Overall it is a good deal.

We are focusing on real estate today.

How is business going?

Prices seem to be going up overall in pockets of growth in europe.

Definitely.

Europe is no longer a unified continent in the way that there are regions -- we have identified this in klepierre.

We target the best regions we have demographic growth and wealth as opposed to other regions.

There is a strong affinity between regions.

The assets we own have a very strong reliable sustainable stream of revenue.

It is normal that investors should look at those revenues with much appetite.

The vindication of that is the price we get for the assets we sell today.

Mr.

morel.

You talk to your customers.

The reason why carrefour were buying these malls is that because they were more real estate so that is not so much a franchise and they are in control of everything?

I think there have been many questions.

You should ask them the question.

There is a very strong management atcarrefour and they have ideas about how they're going to coordinate those properties with the market and the galleries attached to it.

I think there is a clear new government in this company and it is probably a positive for them as well.

What will real estate look like in 2014? what is your biggest concern overall?

I think these two have the right opportunities for growth.

As you know, we have been successful in the recent past in our recent developments.

We're still fighting every day to find new opportunities of growth and this will always be as usual in real estate.

The main challenge is to find the right location.

This will still be the most important challenge for us.

Are you concerned about europe?

You're talking about the fact that political europe is not one europe.

Real estate markets are very different compared to the country where you are in.

Is there too much of a two speeds economy in europe or even three speeds and do you see that in real estate prices?

When you look at america for example, cities, some cities are doing better than others and some are going bust.

You have situations where some cities in europe have public transportation, universities, growth and some are missing the point of the transformation.

Mr.morel, howc are you going to spend the money you're getting fromarrefour?

Are you going on the acquisitive trail?

The point is for klepierre to reach its strategic goal.

It was our main target and we have achieved it could we are happy with that because it is going to dramatically improve the financial profile ofklepierre.

And will allow it to get better access.

I think we believe that it will be of the utmost importance to have a strong balance sheet in the current environment.

I hope you come to the studios here in london so that we can continue the conversation.

Laurent morel of

This text has been automatically generated. It may not be 100% accurate.

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