Hermes has taken a 75% stake in the OPCI French Wholesale Stores fund that owns 43 Metro Cash & Carry France outlets, which represent 50% of the company's French store network. The stores are let back to Metro under a long-term sale-leaseback agreement. Hermes said the investment vehicle gives it control provisions over both the exit and the approval and execution of the business plan. The OPCI fund is managed by Amundi Real Estate. Meanwhile, German landesbank Helaba said it and French banks Crédit Agricole and Société Genérale are providing an €87.5m loan to the OPCI fund.

 

　　"We are delighted to have secured this portfolio of well-located properties leased to one of Europe's top retailers at a time in the cycle when few other investors are active, yet in a market where planning is restrictive and supply constrained. We believe the underlying property fundamentals from this portfolio will deliver attractive returns over the long run," said Hermes Real Estate CEO Chris Taylor.

 

　　Metro Cash & Carry France carried out a similar operation last year as part of its plan to sell around €300m of assets to French OPCI funds. "We are now happy (to have) gained Hermes as the main investor in our second French fund. Whilst through this real estate structure Hermes will indirectly participate in Metro Cash & Carry’s outstanding operational business, Metro will in turn benefit from Hermes being one of the most experienced experts in the retail real estate sector," said Jürgen Schwarze, CFO of Metro Properties, the retail giant's real estate division.