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GERRY WEBER sells HALLE 29
October 10, 2018
- Sale of the externally let Showroom Center “HALLE 29” expected to result in cash inflow of about EUR 36 million
- Core business of GERRY WEBER strengthened, financial consolidation promoted
Today, GERRY WEBER International AG signed an agreement regarding the sale of the Showroom Center “HALLE29” in Düsseldorf to a subsidiary of Zech Group, Bremen. The selling price for the property amounts to about EUR 36 million. The completion of the transaction and the payment of the purchase price are subject to several standard customary closing conditions.
Opened after extensive renovations in 2003 and located in the Düsseldorf neighborhood of Derendorf, HALLE 29 is a Showroom Center comprising of 12,000 square meters of lettable space and currently let to 21 different fashion companies. The divestiture of the property which does not form part of the company’s operating assets is being realized in the context of the Performance Program for a repositioning of the company towards sustainable profitable growth. The transaction underlines the focusing of GERRY WEBER International AG on its core business.
The divestiture of the non-core property will result in extraordinary income of presumably approx. EUR 18 million in the financial year 2018/19, which will improve Earnings Before Interest and Taxes/Operating Result (EBIT) of GERRY WEBER International AG by a corresponding amount.
Ralf Weber, CEO of GERRY WEBER International AG, explains the reasons for the sale: “Over a decade ago, the Weber Family realized the ‘HALLE 29’ project with the intention to develop and strengthen Düsseldorf and the ‘City of Entrepreneurs’ as a central hub for worldwide renowned fashion brands. With HALLE 29, we significantly shaped and promoted the fashion location Düsseldorf throughout the past 15 years. To this date, around 200 showrooms were established in the vicinity – a great success for the project. Düsseldorf will continue to play an important role for GERRY WEBER Group. In the current situation however, we decided to put stronger focus on the actual operational core of our business model. Furthermore, selling the property provides substantial financial leeway for the financial consolidation of our company.” back to overview
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