Investment Corporation of Dubai and Inmobiliaria Colonial reach conditional agreement

Under the terms of the agreement, Colonial will spin off its land bank and assets under development within a time frame of five months to its current shareholders prior to being sold to ICD.

After the completion of the spin off, ICD will pay EUR1.19 per share to acquire Colonial, valuing the company at EUR1.8bn.

The agreement is subject to a number of conditions, including the agreement by Colonial's creditor banks by March 19th to a restructuring of the Company's outstanding debt and the support of Colonial's Board to the agreement. The transaction is also conditional upon approval by the relevant competition authorities.

"We are pleased to have reached this agreement. All stakeholders in Colonial now must work very hard to comply with the conditions of the offer in order to achieve a successful closing of the transaction," said Mohammed I. Al Shaibani, CEO of ICD. "Colonial's portfolio in both Spain and France is of high quality and we believe that ICD's understanding of real estate and its unique access to supplementary expertise through our portfolio companies provides a strong opportunity to create significant value for the Company."

Upon completion of the transaction with Colonial's majority shareholders, ICD will launch a public offer in Spain for all the outstanding shares in Colonial and a public tender offer in France for the outstanding shares in Société Foncière Lyonnaise, which is 84.5%-owned by Colonial. A formal announcement providing the details and calendar of the public offers in Spain and France will be made in due course, after receiving regulatory approval.