French hypermarket group Auchan is mulling the acquisition of Simon Properties' stake in Gallerie Commerciali Italia (GCI) after the US-based retail specialist failed to find a buyer for the asset. According to well-informed market sources, in the past few months all interested parties have withdrawn from the acquisition in GCI, which owns and manages 47 shopping centres in Italy. Auchan already owns 51% of the company through its Immochan unit.

German insurance group Allianz was tipped as frontrunner to acquire the interest but it pulled the plug in late 2010 after analising the company's governance situation and its pre-emptive right. Italian insurer Generali and private equity group Carlyle are also believed to have withdrawn from the race.

According to sources, the Simon Property Group stake could fetch as much as EUR 500 mln, valuing the company at roughly EUR 1 bn. Credit Suisse is advising Simon Property on the sale process.

The divestment is part of Simon Property's strategy to sell off non-strategic assets in a number of European countries. Last year, the company divested its stake in Simon Ivanhoe, a partnership with Canadian group Ivanhoe Cambridge, to Unibail-Rodamco. Simon Ivanhoe held a portfolio of seven shopping centres in France and Poland.