Nexity enters into exclusive negociations to sell its residential property management services business to Bridgepoint

NEXITY ENTERS INTO EXCLUSIVE NEGOTIATIONS TO SELL ITS RESIDENTIAL PROPERTY MANAGEMENT SERVICES BUSINESS TO BRIDGEPOINT

Paris, 21 December 2023, 6:05 p.m.

Nexity, a comprehensive real estate operator, announced today that it entered into exclusive negotiations with a view to selling 100% of its Residential Property Management Services (“RPMS”) business¹ to Bridgepoint, a European leader in alternative asset management, based on an enterprise value of €440m. This transaction would include a strategic partnership boosting existing synergies with Nexity’s businesses and securing their long-term future.

The proposed transaction could be finalised in the first half of 2024, following consultation with the relevant employee representative bodies and the customary conditions precedent being met². It fits with Nexity’s plan to adjust its strategic roadmap to the new market conditions, as announced by Nexity on 25 October upon the release of its Q3 2023 results. The Group stated it had initiated a process to find strategic and financial partners for its property management and distribution businesses.

The planned strategic partnership agreed by Bridgepoint and Nexity would allow all the activities involved (Joint Property Management, Lease Management, Property Rental & Sales, and Insurance Brokerage) to continue their development. The partnership would also enable Nexity to maintain and expand the synergies generated over the past several years across business lines.

The proceeds from this transaction would be used to reduce the Group’s debt level. The capital gains generated by this transaction would help Nexity adapt more quickly to new market conditions and partly offset the cyclical low expected in 2024.

“I am proud of Nexity’s capacity to once again deliver on its commitments, by swiftly entering into this first strategic and financial partnership, enabling us to implement our roadmap, refocused on accelerating toward urban regeneration and managed real estate. As we wished, this first agreement should enable the Residential Property Management Services business to continue their development, while securing and boosting existing synergies with Nexity’s businesses.” Véronique Bédague – Chairwoman and Chief Executive Officer of Nexity