Pierre Perrin-Monlouis Dernière mise à jour: 20 octobre 2021
Club Méditerranée and Gecina Group have carried out a transaction, under which Gecina will assume the financing on four French villages (Val d’Isère, Peisey-Vallandry, La Plagne 2100 and Opio). A 12-year lease agreement , renewable at Club Méditerranée’s option, has been signed with gecina.
The transaction amounts to a total of €225 million, including €33 million in renovation work financed by Gecina at the La Plagne 2100 and Opio villages.
The sale, carried out with the help of BNP Paribas, is part of the implementation of Club Méditerranée’s new strategy and will enable the Group to refinance, on attractive terms, four of its most beautiful villages: Val d’Isère, which was recently renovated, Peisey-Vallandry, a 4 Tridents village that will open this winter, and La Plagne 4 and Opio, which will soon be renovated and repositioned as 4 Tridents villages. All of these villages illustrate the Group’s move upmarket.
In addition, the long-term lease arrangement, at the attractive rate of 7%, will enable Club Méditerranée to ensure its control over the long-term operation of strategically important villages, while enhancing its financial flexibility. .
The transaction has significantly improved Club Méditerranée’s balance sheet, by reducing debt by €175 million and increasing equity by around €40 million. Gearing at October 31, 2005 will therefore come to approximately 50% under French GAAP.
The transaction will also result in an after-tax capital gain of around €40 million in 2005, which will enable the Group to break even for the first time in five years.
In future years, the transaction will add around €2 million in net income per year, under IFRS.
“This transaction has significantly improved Club Méditerranée’s balance sheet by reducing debt and increasing equity,” noted Michel Wolfovski, Chief Financial Officer. “It has given us greater financial flexibility and generated additional funds to support our upmarket strategy. The terms of the lease signed with Gecina has secured long-term operation, on attractive terms, of the villages concerned and will enable the Group to focus on improving profitability and implementing its strategy.”
Media: Thierry Orsoni Analysts: Caroline Bruel
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