What: SGM secures EUR 96 million refinancing for six shopping centres, demonstrating successful retail property management with occupancy rates increasing from 60% to 95%.

Why it is important: The refinancing represents a significant vote of confidence in brick-and-mortar retail transformation strategies.

The Société des Grands Magasins (SGM) has secured a EUR 96 million refinancing package for six of its shopping centres across France, including prominent locations in Lille, Roubaix, Mulhouse, Kremlin-Bicêtre, Châlons-en-Champagne, and Metz. The 15-year amortising mortgage loan, arranged with Bpifrance, BGL BNP Paribas, and several regional Caisse d'Épargne branches, positions the group's loan-to-value ratio at 45%. Under the Merlin family's leadership, SGM has demonstrated success in revitalising retail assets, with five of the six refinanced centres seeing occupancy rates surge from 60% to 95% over six years, while tripling their value and doubling net rental income. The group, which manages eleven sites in total, specialises in transforming struggling commercial properties through strategic renovations and tenant mix optimisation. Their expertise extends beyond shopping centres to department stores, as evidenced by their management of seven affiliated Galeries Lafayette locations and their ongoing integration of the recently acquired BHV operations.

IADS Notes: SGM's successful refinancing builds upon their proven track record in retail transformation. As reported in January 2025, their management of BHV demonstrated significant progress, achieving EUR 9.6 million EBITDA despite challenging market conditions . This success was further reinforced in September 2024 when SGM's EUR 38 million recapitalisation of BHV yielded positive early results . The group's approach to retail asset management, combining physical renovation with strategic tenant mix optimization, aligns with broader industry trends seen in March 2025, where successful operators are increasingly focusing on creating value through comprehensive property transformation.

Galeries Lafayette’s affiliate SGM obtains a €96m refinancing to relaunch its shopping centres