Mercialys Taps Legal Heavyweight for Governance-Led Growth Strategy

PARIS, FRANCE – November 24, 2025 – In a move that speaks volumes about the shifting priorities in European real estate, French REIT Mercialys has appointed Sarah Leroy as its new General Secretary. While executive appointments are routine, this one is anything but. By placing Legal, Governance, Compliance, and Corporate Social Responsibility (CSR) under a single, seasoned leader who will sit on the Executive Committee, Mercialys is signaling a strategic pivot where robust governance is no longer a back-office function, but a primary engine for growth and value creation.

Leroy, a qualified lawyer with a formidable track record in real estate and M&A, reports directly to CEO Vincent Ravat. Her appointment comes as the company embarks on a new chapter of active development and navigates an increasingly complex regulatory landscape, making her unique blend of expertise a critical asset.

A Strategic Play Beyond Compliance

For investors watching Mercialys, Leroy's background is the most telling detail. Her 15-year tenure at AXA Investment Managers, culminating as the Global Head of Legal for its Real Assets division, provides her with deep, practical expertise in structuring and executing complex real estate transactions. This is not the profile of a caretaker General Secretary; it is the profile of a strategic dealmaker and risk manager.

This expertise arrives at a pivotal moment. After a period of limited investment, Mercialys recently signaled a return to an active acquisition strategy with its €146 million purchase of the Saint-Genis 2 shopping center in Lyon. Furthermore, the company has a development pipeline valued at €430 million earmarked for 2024-2028 and beyond, focused on transforming existing sites into mixed-use, sustainable neighborhoods. Executing this ambitious agenda requires more than just capital; it demands sophisticated legal and transactional oversight to navigate zoning, acquisitions, and development agreements. Leroy's extensive experience at AXA IM, where she oversaw legal matters for a €70 billion real estate portfolio, directly equips her to guide Mercialys through this next phase of expansion.

Her role is clearly designed to be a strategic enabler, ensuring that as Mercialys deploys capital and transforms its portfolio, it does so with a rigorous legal and governance framework that mitigates risk and maximizes value. The move suggests the company is building the internal architecture needed to support a more aggressive and complex growth strategy than it has pursued in recent years.

Navigating the New ESG and Regulatory Gauntlet

Perhaps the most significant aspect of Leroy's new role is the consolidation of the CSR function under her leadership. This move firmly embeds sustainability and ethical practice at the heart of the company's governance structure. In today's European market, this is not a "nice-to-have"—it is a fundamental business imperative.

The real estate sector is under intense pressure from a wave of regulations, most notably the Corporate Sustainability Reporting Directive (CSRD), which mandates detailed, audited disclosures on environmental and social impacts. For REITs like Mercialys, failing to meet these standards—or failing to have a credible strategy—can impact access to capital, affect asset valuations, and damage investor confidence.

Mercialys has already established itself as a proactive player in this domain. Its "4 Fair Impacts for 2030" ESG strategy and its scientifically validated greenhouse gas reduction targets (SBTi) demonstrate a clear commitment. However, strategy without execution is merely ambition. Leroy's appointment provides the critical oversight needed to translate these goals into auditable actions and transparent reporting. By placing CSR alongside Legal and Compliance, Mercialys ensures that its sustainability claims are backed by rigorous processes and are fully integrated into its risk management framework.

This integrated approach is crucial for the bottom line. Strong ESG performance is increasingly correlated with lower capital costs, higher tenant retention, and enhanced brand reputation. By tasking a top-level executive with ensuring the integrity of its ESG program, Mercialys is not just managing regulatory risk; it is actively cultivating a key differentiator to attract ESG-focused investors and build long-term resilience.

Reinforcing the C-Suite for a New Era

Leroy's appointment is also a key piece in the broader story of Mercialys' corporate evolution. Following the withdrawal of the Casino group from its capital, the company has been methodically strengthening its independent governance and management structures. This has included the creation of a new Executive Committee and the insourcing of key functions that were previously outsourced.

Bringing in an executive of Leroy's caliber—with a career spanning top-tier law firms like Jones Day and executive roles at global corporations like Tereos—is a clear statement of intent. Her experience extends beyond law; at Tereos, she was not only Group General Counsel but was also entrusted with the Human Resources department, demonstrating a breadth of leadership that is rare. This experience on executive committees, managing global teams, and handling diverse corporate functions makes her a powerful addition to the Mercialys leadership team as it forges its own path.

This move signals a maturation of the company's leadership, building a C-suite with the diverse skills necessary to compete as a fully independent entity. For a company managing a €2.9 billion real estate portfolio and aiming for consistent growth in net recurrent earnings, having a General Secretary with proven strategic acumen and board-level experience is essential for steering the ship through the complexities of the modern market.

The decision to place such a multifaceted and high-stakes portfolio under a single, powerful executive underscores a fundamental shift in corporate strategy. It reflects the reality that in the 21st-century real estate market, legal discipline, transactional agility, regulatory compliance, and sustainable practice are not separate pillars but interconnected components of a single, resilient foundation for growth. With Sarah Leroy's appointment, Mercialys is making a calculated bet that this integrated, governance-led approach will be the key to unlocking its next chapter of value.