PRESS RELEASE

from MERCIALYS (EPA:MERY)

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PRESS RELEASE

Paris, July 2, 2024

Disposal of four hypermarkets for €117.5 million

Mercialys is announcing the sale of four hypermarkets to a club deal formed by Foncière Magellan, MTV Capital and Ciméa Patrimoine. Mercialys owned 51% of these assets, with the remaining part held by a fund managed by BNP Paribas REIM France. This sale was completed at a price in line with the latest appraisal values.

As part of this transaction, Mercialys also sold two additional fully-owned ancillary assets.

This transaction represents a total net sales price of €117.5 million. This sale will help improve the loan to value (LTV) ratio to 38.3% excluding transfer taxes on a proforma basis, compared with 38.9% at end-2023.

The sale of these hypermarkets operated by Auchan is also aligned with the policy to regularly rotate the Company’s portfolio and continuously balance its rental exposure. In addition, it anticipates the upcoming rebranding under the Auchan banner of the five Casino stores owned by Mercialys in Corsica1, as part of the unilateral purchase agreement signed on June 22, 2024 for the sale of the Casino Group’s Corsican entity.

Food exposure will represent 15.3% of invoiced rents (2023 proforma) in an economic vision2, with the following breakdown:

-          Intermarché: 5.3%

-          Auchan: 5.0%

-          Carrefour: 2.0%

-          Monoprix: 1.6%

-          Casino#HyperFrais: 1.1%

-          Aldi: 0.2%

-          Lidl: 0.1%

This sale further strengthens Mercialys’ already very robust financial position and provides it with increased resources to support its growth strategy. It will be rolled out on a selective basis through the development pipeline or targeted acquisitions in retail real estate or related activities. Specifically, the Company will ensure that the yield on these operations is at least 250bp higher than the refinancing cost of the projects or acquisitions.

On this transaction, Mercialys and BNP Paribas REIM France were assisted by JLL and Wargny Katz, while the buyer was assisted by Bretlim Fortuny and Office du Dôme.

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1   Assets owned by a joint ownership structure in which Mercialys holds 60%

2   Consolidated rental income adjusted (i) downwards for the 49% minority interest held by a company managed by BNP Paribas REIM France in SAS Hyperthetis Participations and SAS Immosiris, which together own a total of five hypermarkets following the sale announced in this press release, and (ii) upwards for Mercialys’ 25% minority interest in SCI AMR, which owns three Monoprix stores and two hypermarkets

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Société Anonyme au capital de 93 886 501 € immatriculée au RCS de Paris sous le numéro 424 064 707. Code NAF 6820B.

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This press release is available on www.mercialys.com.

Analyst and investor contact

Olivier Pouteau

Tel: +33 (0)6 30 13 27 31

Email: opouteau@mercialys.com

About Mercialys

Mercialys is one of France’s leading real estate companies. It is specialized in the holding, management and transformation of retail spaces, anticipating consumer trends, on its own behalf and for third parties. At December 31, 2023, Mercialys had a real estate portfolio valued at Euro 2.9 billion (including transfer taxes). Its portfolio of 2,038 leases represents an annualized rental base of Euro 175.5 million. Mercialys has been listed on the stock market since October 12, 2005 (ticker: MERY) and has “SIIC” real estate investment trust (REIT) tax status. Part of the SBF 120 and Euronext Paris Compartment B, it had 93,886,501 shares outstanding at December 31, 2023.

IMPORTANT INFORMATION

This press release contains certain forward-looking statements regarding future events, trends, projects or targets. These forward-looking statements are subject to identified and unidentified risks and uncertainties that could cause actual results to differ materially from the results anticipated in the forward-looking statements. Please refer to Mercialys’ Universal Registration Document available at www.mercialys.com for the year ended December 31, 2023 for more details regarding certain factors, risks and uncertainties that could affect Mercialys’ business. Mercialys makes no undertaking in any form to publish updates or adjustments to these forward-looking statements, nor to report new information, new future events or any other circumstances that might cause these statements to be revised.

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Société Anonyme au capital de 93 886 501 € immatriculée au RCS de Paris sous le numéro 424 064 707. Code NAF 6820B.

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