Cleary Gottlieb is advising Gecina in the hive-down of its residential portfolio.
Gecina’s residential portfolio, which is made up of 6,000 apartments representing 409,000 square meters, is valued at around €3 billion and is located primarily in the Paris Region. The hive-down, which is expected to be implemented during the first half of 2020, represents an opportunity for Gecina to develop its rental residential portfolio in Greater Paris’ most central sectors, as well as in other major French cities. Gecina intends to retain the control of the hive-down company and maintain a group share allocation of its portfolio with around 80% office assets and 20% residential assets.
The transaction was announced on December 10, 2019, following the approval by Gecina’s board of directors of the implementation of the proposed hive-down, after consulting with the Central Works Council. The transaction is subject to approval by shareholders at the extraordinary general meeting to be held in April 2020.
Gecina is a French real estate investment trust (SIIC) listed on Euronext Paris that owns, manages, and develops property holdings worth €19.9 billion at end-June 2019. The group is building its business around Europe’s leading office portfolio, with nearly 97% located in the Paris Region, and a diversification division with residential assets in particular.