CFAO SGI Africa

pending

This is a proposed equity investment of up to €60 million in SGI Africa SAS (“SGI” or ‘’the Company”) to support the phased development of c.20 malls in West and Central Africa at an estimated cost of €500 million (the “Project”). Target countries are Cameroon, Congo, Ivory Coast, Ghana, Nigeria, Senegal, Gabon and the Democratic Republic of Congo. The company is the property development and management arm of CFAO Retail, the retail division of CFAO S.A. (“CFAO” or the “Group” or the “Sponsor”), a front-ranking specialized distributor and preferred partner of major international brands, serving the high-potential equipment & services, healthcare and consumer goods markets in Africa and the French overseas territories. CFAO Retail was created in 2013 to develop modern retail in Africa and includes SGI Africa mandated to build and manage shopping malls across West and Central Africa. Depending on the country’s assessment, 3 formats are considered: (i) hypermarket + shopping center + food court; (ii) supermarket + shopping center + food court; or (iii) standalone supermarket with a small gallery. Carrefour is expected to be the anchor tenant in all the malls. The expansion plan is already in motion with the first 14,500 m2 Gross Leasing Area (GLA) shopping mall (Marcory) to open in Abidjan, Ivory Coast, in December 2015. CFAO Retail will acquire or lease land lots in all 8 targeted countries. In Côte d’Ivoire, CFAO already acquired one land lot considered a willing buyer/willing seller transaction for its Marcory shopping mall. About 6 other sites have been prospected. In Cameroon, at least 5 sites have been prospected among which, one could be a lease. In all countries, lands are located in urban setting and cover 2-6 ha.