M&A announcement

Jul 24, 2026

Summary

The merger aims to create a leading European logistics platform by combining ARGAN's strong French portfolio and land bank with cross-border growth opportunities. Key synergies are expected from operational and financing efficiencies, with a focus on accelerated development and ESG standards.

We already have a first question incoming from Pierre and Jeffrey. You're now unmuted. Yes, thank you very much. Congrats for this deal. Actually, I have quite a decent amount of questions, so I will limit myself to two to give the floor to other analysts. Just coming back on the NAV acquisition, so the +7%, I see that ARGAN's portfolio is currently valued at about 55%, and it's basically in line with the prime market yield today, and there is no clear reversion on the portfolio except for the assets led to Carrefour today. Can you explain how you assess the valuation of ARGAN's portfolio in this context of current market yield in France and in a more subdued market, let's call it that way? Would this deal have been relative attractive if you were, let's say, more marking to the market ARGAN's portfolio valuation? Okay, understood. I guess the impact on the LTV based on this 6% yield would not be the same, it has to be taken into account in this deal in the end. That's a comment. Well, my second question is more for ARGAN's team. Just to understand the setup of the deal and the rationale behind this 11 special dividends, why this structure has been preferred over a higher exchange ratio. Do the Le family have a lock-up period after the closing of this deal, and what would be the duration, the conditions of this lock-up? Is the merger agreement fully legally binding today, or are there circumstances under which ARGAN's board could engage with a third party? Sorry, you spent the transaction in EUR. Could you take the money? Sharing the upside. Okay, understood. Thank you very much. The line is open for you now. Hey. Good morning, everybody. For quite tradition, first on both teams. I have a few questions, if I may. Maybe the first one, can you guide us through the history of discussion? Since when have you really started to formally engage? About the execution mechanic? Yeah, can you talk? Unique deal. I understand that ARGAN was more approaching. Maybe a question on financing, because you mentioned that EUR 10 million synergy would come only from a financing point of view. In parallel, we know that ARGAN's debt is mostly composed of, well, secure funding, so mortgage-related type of funding, which accordingly is cheaper. I'm not so sure I understand how you would be able to get lower funding on that basis. Can you explain? Thank you. Understood. I understand technically the mid to long-term benefit, of course, I'm just struggling to see short-term how the marginal cost of debt could be even lower than the secure funding. Okay. Anyway, I think it's from there. The next question would be on the LTV that you mentioned. Short-term. That's how you should see it. Okay. On the LTV side, the one-person impact that you mentioned, does it take into account the exceptional dividends and the proforma disposals? On the disposals, at which deal do you assume the disposal to be done? The valuations, yeah. Okay. Thank you. Then a very last question, more helicopter view. I understand you're presenting France and being very vocal about the great France, I'm just wanting to know, what do you think about giving this bigger exposure to a country where actually there could be more standstill or sluggish activity ahead of the upcoming presidential election? Thanks. Thank you. Yes. The line is now open. Yes, good morning. Thank you for taking my question. Just two questions from my side. First, on looking at ARGAN's portfolio, I think there's no vacancy due to the type of asset and build to suit. Average residual list time is around 4.9 years. Would you expect vacancy to increase toward the market average, which I think in France as of end of June per CBRE is roughly 7% over time? Do you think that the portfolio is generally positioned in a way that should justify very low vacancy? Thank you. That's very interesting. Thank you. My second question is on the land bank, which just you mentioned as a key driver during your presentation. Going through the disclosure, there's not as much detail on the location of the land bank. Is it mostly around the Île-de-France region? Is it spread across the market? Is it mostly around the existing asset in terms of extension of proven site or new green build area? Thank you. Thank you. From Île-de-France. Yes, good morning. Congratulations to both ARGAN and WDP. Two questions on my side. First one is coming back on the EUR 250 million of disposals. I understand you expect to sell at current valuation, but you are not mentioning the assumed yield. Maybe you can provide more detail on the timing and the geographic considered for these disposals. We realize it, let's say, by the end of next quarter. Okay, thank you. Maybe a bit of a different question with regard to allocation to Romania. Considering the increasing size of the portfolio, do you still see limits to the allocation you want to do under the blend and extend plan? Do you believe that with the dilution of Romania within the combined portfolio, there is room to do more since you have done quite a lot in Romania over the last 12, 18 months? Do you see room to allocate more capital to this country? Other country. We have the next question incoming from. Good morning. I'm sure a couple of questions. First one is just basically the strategic rationale for acquiring ARGAN. Obviously, we're heavily on France. France has been exhibiting signs of a relatively weaker European industrial market from an operating fundamentals point of view. Take-up is down around 25% in the first half of this year versus the 5-year prior average. How do you think about this as part of your underwriting? I know you touched on it from a political point of view, but some more details would be helpful, especially sort of where you think market rent growth will be versus existing markets, Benelux, Romania, etc. European solution. Okay, understood. Thank you. Just a quick second question, if I may. It's just on the synergies you just want to understand a bit more deeply. I know you touched on it. The EUR 10 million synergies, you're saying around one-third is operational and the other two-thirds is around the funding cost, which you discussed earlier. Just to understand correctly, that's around sort of EUR 3 million over the EUR 15 million I think ARGAN has in its G&A. Is that the correct understanding? I would have expected it to be a bit higher. Understood. The last one, a quick one. This one is just to understand how we want to think about capital allocation. Between completing the existing pipeline, accelerating the French land bank, I think you mentioned around 1 million sq m buildable area now, and entering Italy and Spain. I bet you can do already something. That's clear. Thank you. You're now unmuted. Yes, good morning. Thanks for all this explanation. Actually, I would have only one question maybe for ARGAN. My question would be as follows, so further to a discussion with some investors. Why for ARGAN shareholders? This is the best offer to be accepted given that this offer values ARGAN still with a discount on a prime tier. Given the high quality of the portfolio and the team at ARGAN, so maybe we would have been able to imagine some offer maybe more closer to the NAV. That's my question. Changing shares. Okay, thank you. That's very clear. Thank you. The line is now open for you. Great. Thank you very much for the presentation and my questions. I've got a few questions remaining, technical in their nature. First of all, on the debt, are there any change of control clauses we need to be factoring in when considering the combined entity? That's another option. Okay, perfect. Thank you. Secondly, can I just check on the required French tax ruling details there and then if there's any risks from a SIIC perspective as well? Thank you very much. The microphone on your computer. Yes, it should be good now. Good morning, everyone. Thank you very much for the presentation. Very appealing transaction. Just wanted to ask about the governance because, as you have highlighted several times, you want both companies to keep an entrepreneurial and family-led culture. What would be the board and management committee composition on day one after the transaction? How which families and which companies would be represented? You found it. What about the representation at the board of director level? You mentioned two representatives of WDP and only one of ARGAN, and it would be one of Predica, I guess. Of the agreement. Excellent. Thank you very much. I appreciate the answer. Can you also unmute your microphone, please? Yes. Hi. Congrats from me on the result of the 10 years. If you may, I have three questions. The first one is on the EPS guidance. If I understand it well, you said 3% decrease from the first year of full operation, so that is 2028. Can you give an idea on the impact of 2027 from a WDP point of view on EPS? Okay. Can you give just an idea of what kind of costs you would run into 2027? Is that then are we thinking about legal costs or corporate finance teams or what would be the? EUR 50 million of EPRA earnings. Okay. All right. Fine. Moving on, we've spoken a lot about the financing opportunity, that's also the way I see it. ARGAN has this nice land bank, obviously very good network in France. Can you say that you could and I think I already heard that you can accelerate the land bank? ARGAN was kind of in an asset rotation position where you have to sell assets and then develop. Can you give an idea of kind of the 750,000 sq m in GLA? What kind of horizon, let's say before 2030, what kind of size you could develop or any timing on development if you have an idea on that? Yeah. Thanks, Joseph. Actually, a good bridge to my next question is because the way you also put it, if there's a cross-selling opportunity into the other side of France, Italy, Spain, can you give some examples? I can imagine Carrefour is big in Spain. Is that the way we should look at it, that you can gain access to certain tenants from ARGAN, which you then can use to develop in Italy, Spain? Can you give some more examples of those potential clients? For the client. Okay. Sorry to be impatient. Last question is, you said France is kind of a very important piece of the puzzle in the European network. The other big piece in the puzzle is Germany, where you've also said this is a target area for you to grow. I think also if you want to open up roads towards Eastern Europe. Can you give an idea? Is that now a bit on the back burner since you have obviously this big integration on hand, or unless there's a big distress sale coming up that you say Germany is not the priority at the moment? Okay. Thanks so much. Okay. Thanks a lot. Good luck. Good morning, everyone. Just a quick one from my side. I wanted to check if this merger contract changes control for recently issued ARGAN bond as well. Does that mean you may need to pay that bond ahead of the 2029 maturity? Got it. That's helpful. Thank you. The line is now open for you. Yeah. Good morning and congratulations to both teams. Just a question on the topic that is dear to me on ESG. I do think that ARGAN has developed a strong expertise and they have this autonomous standard for new warehouses. Have you discussed perhaps the way that this, let's say, high ambition on self-sufficient warehouses could be expanded into the entire portfolio on how you because I do think that ARGAN has set in the past a very high ambition going forward when it comes to the ESG features of their warehouses. Is it something you have discussed for the combined portfolio? Okay. Very clear. Thank you very much.