Regulatory News:

Mercialys (Paris:MERY):

On January 29, 2021, the French Ministry for the Economy, Finance and the Recovery ordered the closure of all non-food stores with over 20,000 sq.m of gross leasable area, as well as non-food stores in shopping centers with a gross leasable area of over 20,000 sq.m. This definition is extremely broad, as the 20,000 sq.m is calculated by adding together all of a site’s areas for food or non-food stores, as well as their stockroom and office areas.

Furthermore, the French Government has stated that food stores in shopping centers will remain open, whether they are supermarkets or specialist food stores (e.g. bakeries). Pharmacies will also be exempt and will remain open. In addition, it announced that the minimum space ratio per person has been reinforced for all retail spaces (stores over 400 sq.m and shopping centers), based on one person per 10 sq.m, compared with one person per 8 sq.m previously.

Stores that are closed will no longer be able to offer click and collect services. However, they will still be able to offer deliveries for their products.

These closure measures came into force on Sunday January 31, 2021. They will not apply on Réunion Island, where only the minimum space ratio per person is expected to be reinforced.

As a result of these measures, more than 50% of Mercialys’ rental base is able to remain open.

Relief measures will be put in place by the Government to support retailers. Illustrating this, retailers concerned by the closure of shopping centers “will benefit from the reinforced solidarity fund, with the right to choose between compensation for loss of sales up to Euro 10,000 or compensation for 20% of sales up to a maximum of Euro 200,000 per month. For chain-based retailers, particularly major integrated retailers for which the Euro 200,000 of compensation would be insufficient, they will be offered arrangements to cover 70% of their fixed costs. These support measures will allow retailers to cover their rent and costs. Stores that are closed will be entitled to the furlough scheme without requiring them to make any top-up contributions. They will be entitled to the exemption from employer's contributions, as well as support for the payment of payroll taxes”.

Lastly, Bruno Le Maire, French Minister of the Economy and Finance, indicated publicly on February 1, 2021 that: “Rents will be covered. […] And, I made a commitment to do this on Saturday, I talked with all of these shopping center representatives: it is perfectly normal that from the moment we close them, they will not have costs to cover”. The conditions for this cover, which may be indirect, are not known to date.

Mercialys deplores the exceptional closure of stores and sites that have introduced widespread health measures to protect visitors. Mercialys will continue to accelerate the rollout of its Ocitô service, enabling retailers at its sites to deliver their food and non-food products within their catchment areas, helping support their business and the sustainability of their links with their local communities.

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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. It is specialized in the holding, management and transformation of retail spaces, anticipating consumer trends, on its own behalf and for third parties. At June 30, 2020, Mercialys had a real estate portfolio valued at Euro 3.5 billion (including transfer taxes). Its portfolio of 2,111 leases represents an annualized rental base of Euro 182.3 million. Mercialys has been listed on the stock market since October 12, 2005 (ticker: MERY) and has “SIIC” real estate investment trust (REIT) tax status. Part of the SBF 120 and Euronext Paris Compartment B, it had 92,049,169 shares outstanding at June 30, 2020.

IMPORTANT INFORMATION

This press release contains certain forward-looking statements regarding 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 Mercialys’ Universal Registration Document available at www.mercialys.com for the year ended December 31, 2019 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.