Mercialys : On November 6, Mercialys is inaugurating Cap Sacré-Cœur, The Indian Ocean’s second largest shopping center

Press release Paris, October 1st, 2018

ON NOVEMBER 6, MERCIALYS IS INAUGURATING CAP SACRE-CŒUR, THE INDIAN OCEAN'S SECOND LARGEST SHOPPING CENTER

Mercialys is finalizing the major extension of its Cap Sacré-Cœur shopping center, which will be inaugurated on November 6, in the Le Port city. This project is 100% let, which highlights the site's appeal for a wide range of national and international retailers. Cap Sacré-Cœur will be a major shopping destination on Reunion, and will also be rolling out a renewed digital platform serving its visitors.

In the northwest of the island, the Cap Sacré-Cœur shopping center is ideally located at the heart of a major residential hub with 400,000 inhabitants and strong demographic growth. Served by a dense transport network, this site's effective positioning has been further improved by the renovation of all its facades based on a strong transversal identity, aligned with Mercialys' other shopping centers.

NEW IDENTITY AND COMPLETELY RETHOUGHT CENTER FOR A UNIQUE SHOPPING EXPERIENCE IN THIS REGION

The center's new identity, which has just been revealed on social media, is based on G La Galerie graphics, but has been adapted locally to effectively stand out. In addition to building the extension, Mercialys is modernizing all of the existing center, introducing new spaces for cultural activities and events, rethinking its pedestrian pathways, renovating and extending its parking facilities, and building a 550-space multistory car park with green walls.

Cap Sacré-Cœur will benefit from a powerful digital ecosystem aiming to improve the site's visibility with a multichannel approach, while also simplifying customer preparations and visits. For instance, the center's latest news, activities and events will be promoted on social media and with the site's specific tools (website and dedicated app), as well as using indoor digital screens and the island's largest outdoor digital screen.

Alongside this, Cap Sacré-Cœur is the island's first center to launch a fully digital loyalty program, "Club CAP Gagnant", making it possible to reward customer visits and purchases (discounts, gifts, exclusive services and offers, invitations, etc.). In addition, the center's teams have put together a program of events and activities throughout the year and for the various key periods to make Cap Sacré-Cœur a unique shopping and leisure destination on Reunion.

SUCCESS WITH RETAILERS ENSURING AN ATTRACTIVE MIX AND NEW CHOICES

This 9,200 sq.m extension, opening on November 6, will offer 45 new shops, including five mid-size stores, and all being already fully let. This is a groundbreaking retail mix that is ready to be discovered by the island's residents and visitors. With its new configuration, Cap Sacré-Cœur includes more than 40 national and international retailers:NespressoandTally Weijl(clothing) from Switzerland,Inglot cosmeticsfrom Poland,Flormar(cosmetics) andKoton*(clothing) from Turkey,Muy Mucho*(decoration) andSpringfield(clothing) from Spain,Jack & Jones, Vero Moda and Pandorafrom Denmark,MAC* andLevi's*from the USA,Parfoisfrom Portugal and alsoBonobo*, Undiz, Rouge Gorge*, American Vintage*, Palais des Thés, ID kids*, La Fée Maraboutée*, CourirandColumbus Café*.

In 2019, the Cap Sacré-Cœur center's development as a shopping destination will continue, with the opening of a food court, an outdoor dining hub and a retail park, representing a further 5,300 sq.m of rental space. Cap Sacré-Cœur will be the Indian Ocean's second largest shopping center, with over 100 shops and restaurants, seven mid-size stores and more than 42,500 sq.m of rental space.

* First opening in Reunion

This press release is available onwww.mercialys.com

Analysts / investors contact:	Press contact:
Alexandre Leroy	Gwenaëlle Allaire
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About Mercialys

Mercialys is one of France's leading real estate companies, focused exclusively on retail property. At June 30, 2018, Mercialys had a portfolio of 2,130 leases, representing a rental value of Euro 178 million on an annualized basis. At June 30, 2018, it owned properties with an estimated value of Euro 3.8 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, 2018, there were 92,049,169 shares outstanding.

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 the Mercialys registration document available atwww.mercialys.comfor the year ended December 31, 2017 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.