Gecina Jumps Most in 18 Months as Ivanhoe Cambridge Raises Stakeby
Gecina SA jumped the most since July 2014 in Paris trading after Ivanhoe Cambridge bought shares from affiliates of Blackstone Group LP to become the French office landlord’s biggest shareholder.
Gecina climbed as much as 4.5 percent and was up 4.1 percent at 112.75 euros as of 10:30 a.m. Ivanhoe Cambridge will own about 23 percent of the company after the transaction, it said in a statement on Friday. The Canadian real estate investor had held about 14.5 million Gecina shares in a venture with Blackstone before the deal was announced.
“As Gecina’s principal shareholder, we are continuing our participation in the development of one of France’s finest property companies,” Meka Brunel, executive vice president for Europe at Ivanhoe Cambridge, said in the statement.
The real estate investment trust is boosting its French office business as the country’s economic recovery is set to accelerate. In June, Gecina said it plans to increase the proportion of offices to 80 percent of its holdings in the “mid-term” from 63 percent, while selling non-strategic assets such as homes and health-care properties.
Gecina health-care buildings are attracting interest from investors who may bid as much as 1.4 billion euros ($1.5 billion), three people with knowledge of the matter said in October.