FFP has acquired 5% of the capital of SIGNA Prime Selection AG (“SIGNA Prime”) for €186 million. SIGNA Prime’s strategy is to own high-quality property assets in the very long term (mainly offices and retail), at the heart of city centres in Germany, Austria and Northern Italy, offering substantial value creation potential.
As at 31 December 2018, SIGNA Prime holds assets worth nearly €11 billion with perspectives for further growth, particularly through the repositioning of real estate assets and the transformation of city centres in large-scale projects. The SIGNA Prime portfolio includes iconic buildings such as the department stores KaDeWe and the Upper West Tower in Berlin, Oberpollinger and Alte Akademie in Munich as well as the Goldenes Quartier including the Park Hyatt Hotel in Vienna.
FFP will take part in the governance of SIGNA Prime through its representation on the company’s Supervisory Board and Investment Committee.
The stake in SIGNA Prime was acquired from its majority shareholder SIGNA Holding GmbH, an Austrian group with operations in real estate and retail (including the Karstadt and Kaufhof department stores chains) founded by the Austrian entrepreneur René Benko.
Commenting on this investment, Robert Peugeot, FFP’s Chairman, said: “Fully consistent with its investment strategy, FFP is investing alongside a talented entrepreneur who has built a group with high quality assets offering an attractive development potential. This new investment will double the value of FFP’s real estate investments, while providing exposure to a new and strong economic region”.