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Nexity

M&A Activity Oct 26, 2016

1550_iss_2016-10-26_fe5da0f1-91fe-4629-b094-2a7530662116.pdf

M&A Activity

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NEXITY AND ӔGIDE-DOMITYS ENTER INTO STRATEGIC PARTNERSHIP

Paris, 26 October 2016

Founded almost 20 years ago by Jean-Marie Fournet, Frédéric Walther and Didier Jaloux, the Ӕgide-Domitys group is France's leading provider of serviced senior residences (independent living facilities). Residences are developed by Ӕgide and managed by its wholly-owned subsidiary Domitys. Since 2007, Nexity has been a shareholder (with a 38.15% stake in the share capital) and partner of Ӕgide-Domitys, supporting its development.

Ӕgide-Domitys' founders and Nexity have decided to enter into a strategic partnership for the years to come, which will provide Ӕgide-Domitys with the financial resources necessary to achieve its ambitions, and enable Nexity – as an integrated real estate services operator – to add a new business line to its offering, focused on developing and managing serviced senior residences and services for senior citizens. By 2020, Ӕgide-Domitys aims to manage more than 100 senior residences in France and abroad.

Today Nexity acquired 7% of Ӕgide's share capital from the founders, bringing its stake in Ӕgide SA – the parent company of the Ӕgide-Domitys group – to 45.15%, with the founding shareholders owning 54.85%. Nexity and the founders have also undertaken to subscribe to a capital increase in Ӕgide.

Starting in 2018, Nexity will have the option of becoming the majority shareholder of Ӕgide. Should this occur, Ӕgide-Domitys would constitute a separate services business within the Nexity group, and continue to be managed by its founding executives. Starting at the end of 2016, Ӕgide's Chairman and CEO Jean-Marie Fournet will join Nexity's Executive Management Committee.

At 30 September 2016, Ӕgide-Domitys managed 57 serviced senior residences, comprising nearly 7,000 homes. 24 residences are under construction. The group has more than 1,500 employees.

In financial year 2015, Ӕgide recorded more than 1,700 reservations for homes in serviced senior residences, of which 801 were jointly developed with Nexity (345 of which as bulk sales). These figures should be markedly higher in 2016. The Ӕgide-Domitys group's consolidated revenue was around €190 million in 2015.

At this stage, Ӕgide-Domitys is consolidated in Nexity's accounts as an equity-accounted investment.

Alain Dinin, Chairman and CEO of Nexity, commented:

"After nearly ten years of successful partnership, Nexity and Ӕgide-Domitys have decided to enter a new phase, which will see Nexity gradually increase its stake in Ӕgide's share capital. Creating independent living facilities for seniors is a response to a genuine societal need and has significant growth potential: in 2015, there were six million people over the age of 75 in France; this number will rise to more than eight million by 2030. For Nexity, this development is fully aligned with our strategy as an integrated real estate services group, and should eventually lead to the creation of a new 'serviced residences and personal services' division. It's a major growth driver for Nexity, in the rapidly expanding market for serviced senior residences."

Jean-Marie Fournet, Chairman and CEO of the Ӕgide-Domitys group, commented:

"Nexity's increased shareholding in Ӕgide-Domitys is a major milestone in the group's development, and a continuation of our longstanding relationship begun in 2007. It is a testament to the relevance of a business model built nearly 20 years ago, and to how committed all our employees' are to meeting the vital need for senior independent living facilities.

In the market for serviced senior residences, which has seen a surge in demand, the Ӕgide-Domitys group aims to bolster its leading position by expanding its presence in the Greater Paris project, in France's other major cities and abroad. The entire Ӕgide-Domitys group looks forward to continuing this value-creating partnership with Nexity to achieve this goal."

AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE

Nexity offers the widest range of advice and expertise, products, services and solutions for private individuals, companies and local authorities, so as to best meet the needs of our clients and respond to their concerns.

Our business lines – real estate brokerage, management, design, development, planning, advisory and related services – are now optimally organised to serve and support our clients. As the benchmark operator in our sector, we are resolutely committed to all of our clients, but also to the environment and society as a whole.

Nexity is listed on the SRD and on Euronext's Compartment A Member of the indices: SBF 80, SBF 120, CAC Mid 60, CAC Mid & Small and CAC All Tradable Ticker symbol: NXI - Reuters: NXI.PA - Bloomberg: NXI FP ISIN code: FR0010112524 ______

CONTACTS

Journalists

Nexity

Blandine CASTARÈDE – Head of Communication and Brand Strategy / +33 (0)1 85 55 15 52 – [email protected] Anne GINDT – Communication Manager / +33 (0)1 85 55 10 54 – [email protected]

Ӕgide-Domitys

Frédéric WALTHER – CEO – Managing Director / +33 (0)1 53 65 60 60 – [email protected] Sarah OGER – Head of Communication / +33 (0)1 53 65 60 64 – [email protected]

Analysts/Investors Domitille Vielle – Head of Investor Relations / +33 (0)1 85 55 19 34 - [email protected]

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