Mercialys Carries Out Two New Operations with BNP Paribas REIM France

Regulatory News:

In November 2015, Mercialys (Paris:MERY) carried out two new operations with BNP Paribas REIM France, across four sites, consolidating the relationship established during the first half of 2015 with this industry-leading investor.

Two real estate investment funds (OPCI) managed by BNP Paribas REIM France have taken up a 49% interest in these two operations, enabling Mercialys to accelerate the implementation of crucial projects for these assets to increase their commercial appeal, while limiting its investment and maintaining its balanced financial structure.

With Euro 72 million of capital gains in its parent company’s accounts, primarily through the operations carried out with BNP Paribas REIM France during the first and second half of 2015, Mercialys will be paying out an interim dividend of Euro 0.76 per share, with payment scheduled for December 23.

For the full year, and subject to approval by the Board of Directors and the General Meeting, Mercialys will pay out 95% of its recurrent income and 60% of its capital gains, whether or not these are subject to the distribution requirements linked to the SIIC real estate trust status.

Acquisition of three hypermarkets for transformation, building on the relationship launched during the first half of 2015

In June 2015, Mercialys sold a 49% interest in the company Hyperthetis Participations, which owns the premises for six reconfigured hypermarkets, to the real estate fund SPF2, managed by BNP Paribas REIM France.

Following on from this transaction, in November 2015 Hyperthetis Participations acquired the premises for three hypermarkets (Istres, Narbonne and Vals-près-Le-Puy) from the Casino Group for redevelopment. This operation totaled Euro 69 million (including commissions and fees), with a net yield of 5.1%.

Between now and 2018, Mercialys will be carrying out projects to redevelop the shopping malls, owned by Mercialys, reducing the size of these three hypermarkets, notably opening up space for strong and differentiating non-food anchor tenants to move in.

This operation, in conjunction with a leading institutional investor, has enabled Mercialys to secure control of the sites’ real estate overall, while accelerating the projects on sites that are aligned with its strategy, through a limited investment.

49% stake in a subsidiary owning the Clermont-Ferrand shopping mall sold to a real estate investment fund managed by BNP Paribas REIM France, which is also acquiring the hypermarket for redevelopment

Mercialys has sold a 49% interest in a subsidiary which owns the Clermont-Ferrand shopping mall to the REAF real estate investment fund (OPCI) managed by BNP Paribas REIM France, based on a 100% valuation of Euro 101.4 million (including commissions and fees), with a net exit yield of 5.0%.

The sale of this interest has generated Euro 47.7 million of capital gains, recorded in Mercialys’ parent company’s accounts at end-November 2015.

Alongside this, this subsidiary, which is 51% owned by Mercialys and 49% by the fund REAF, has acquired the hypermarket adjacent to the shopping mall from the Casino Group for redevelopment. This acquisition represents a total of Euro 38.6 million including commissions and fees, with a net yield of 4.9%.

The Clermont-Ferrand shopping mall has benefited from several developments between 2013 and 2015 (e.g. extension of the H&M store in 2013, creation of 13 new stores and opening of a Services Village in 2014, redevelopment of the cafeteria vacated by Casino, enabling the Pitta Rosso chain to open in 2015).

Between now and the end of 2017, Mercialys will be rolling out a project to extend the shopping mall by reducing the size of the hypermarket, paving the way for mid-size stores in particular to be brought on board, further increasing this site’s commercial appeal.

Mercialys will be paying out an interim dividend of Euro 0.76 per share on December 23, 2015

At the Board meeting on December 17, 2015, Mercialys’ directors decided to pay out an interim dividend of Euro 0.76 per share. This interim dividend will be paid on December 23, with an ex-dividend date of December 21.

This interim dividend corresponds to 50% of recurrent income for 2014, representing Euro 0.37 per share, as well as 50% of the capital gains generated to date in FY 2015, representing Euro 0.39 per share.

Subject to approval by the Board of Directors and the General Meeting, the total dividend for 2015 will comprise the payout linked to the SIIC real estate trust status, based on recurrent income, as well as 60% of its 2015 capital gains, whether or not these are subject to the distribution requirements linked to the SIIC real estate trust status.

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This press release is available on www.mercialys.com

About Mercialys

Mercialys is one of France's leading real estate companies, focused exclusively on retail property. At June 30, 2015, Mercialys had a portfolio of 2,217 leases, representing a rental value of Euro 160.5 million on an annualized basis.

At June 30, 2015, it owned properties with an estimated value of Euro 3.1 billion (including transfer taxes). Mercialys has had "SIIC” real estate investment trust (REIT) tax status since November 1, 2005 and has been listed on Euronext Paris Compartment A (ticker: MERY) since its initial public offering on October 12, 2005. At June 30, 2015, there were 92,049,169 shares outstanding.

IMPORTANT INFORMATION

This press release contains certain forward-looking statements about future events, trends, projects or targets.

These forward-looking statements are subject to identified and unidentified risks and uncertainties that could cause actual results to differ materially from the results anticipated in the forward-looking statements. Please refer to the Mercialys shelf registration document available at www.mercialys.com for the year ended December 31, 2014 for more details regarding certain factors, risks and uncertainties that could affect Mercialys' business.

Mercialys makes no undertaking in any form to publish updates or adjustments to these forward-looking statements, nor to report new information, new future events or any other circumstances that might cause these statements to be revised.

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