COVIVIO (EPA:COV) - Covivio: disposal of non-strategic assets worth €482m

Transparency directive : regulatory news

17/01/2019 17:50

PRESS RELEASE

Paris, 17 January 2019

Covivio completes disposal of non-strategic assets worth EUR482m

Covivio has announced the sign-off of disposals worth EUR482m relating to
budget hotels and retail assets. These operations, completed at higher than
appraised values through the subsidiary Covivio Hotels(1), represents a
significant milestone in the group's strategy aimed at a move upmarket for the
brand's hotel portfolio and divestment of non-strategic business.

A hotel portfolio moving upmarket
Covivio has signed a sale agreement to an institutional investor for 59 B&B
hotels located in the regions and in the Ile-de-France suburb, amounting to a
total of EUR272m. The disposal of this portfolio(2) delivers a yield rate of
5.04% (incl. fees). At the end of this operation, Covivio will remain as owner
of the 126 hotels operated by the B&B brand in France and intends to support
the operator's development in Europe.

Ongoing disposal of non-strategic business
Covivio is also divesting 23 Jardiland assets (54% of the remaining portfolio,
properties located on the outskirts of French cities) for an amount of EUR108m.
Lastly, Covivio announced the sale of the Sunparks holiday village located in
De Haan, in Belgium, for EUR102m.

"In 2018, the acquisitions and disposals carried out by Covivio helped to
significantly improve the quality of our hotel portfolio, more than 80% of
which is located in Europe's most dynamic markets, such as Berlin, Madrid,
Paris, Amsterdam, and, more recently, London. Over and above geographic
diversification, we have also worked on developing concepts within the
portfolio with high-end innovative brands like Motel One, Voco, Kimpton,
Meininger, Room Mate, Méridien," concluded Dominique Ozanne, Deputy CEO of
Covivio.

(1) 42.3% ownership held by Covivio
(2) 50.2% ownership of portfolio held by Covivio Hotels, the remainder by
Crédit Agricole Assurances and Assurances du Crédit Mutuel (ACM)

CONTACTS

Press Relations
Géraldine Lemoine
Tel: + 33 (0)1 58 97 51 00
geraldine.lemoine@covivio.fr

Laetitia Baudon
Tel: + 33 (0)1 44 50 58 79
laetitia.baudon@shan.fr

Investor Relations
Paul Arkwright
Tel: + 33 (0)1 58 97 51 85
paul.arkwright@covivio.fr

ABOUT COVIVIO

With a strong partnership background, real estate expertise and truly European
culture, Covivio is inventing today's user experience and outlining the city of
the future.

A preferred real estate player at the European level, Covivio is close to its
end users, capturing their aspirations, combining work, travel, living, and
co-inventing vibrant spaces.

A benchmark in the European real estate market with EUR23 billion in assets,
Covivio offers support to companies, hotel brands and territories in their
pursuit for attractiveness, transformation and responsible performance.
Its living, dynamic approach opens up exciting project and career prospects for
its teams.

Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 -
COV) and the MTA market (Mercato Telematico Azionario) on the Milan stock
exchange, are admitted to trading on the SRD and are included in the
composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100
indices, in the "EPRA" and "GPR 250" benchmark European real estate indices,
Green Star GRESB, and in the ESG FTSE4 Good, DJSI World & Europe, Euronext
Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Oekom, Ethibel and
Gaïa ethical indices.
Covivio is rated BBB/Positive outlook by Standard and Poor's.

covivio.eu

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COVIVIO (EPA:COV) - Covivio: disposal of non-strategic assets worth €482m

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