Corio signed an agreement with developer SOGAM, a subsidiary within the Vinci Group, for the acquisition of the retail park development in Coignières, 25 km west of Paris along the Route Nationale 10. This integrated well-designed project will consist of 37,600 m lettable area, of which over 90% is already pre-let.
Corio will acquire this turnkey project for approximately €85 million upon completion, which is expected to be in 2008. In line with Corios strategy this investment will add a dominant shopping destination in terms of quality and size in its catchment area to Corios portfolio.
The retail park scheme is located in the well-established retail zone of Coignières in the department Les Yvelines along a main road, the Route Nationale 10, from where it has an excellent visibility. The area surrounding the scheme is very densely populated with a quarter of a million people living at a ten-minute driving distance. This is a wealthy part of the Paris region, with an average income of more than 35% above the average income in France.
The integrated project will consist of 37,600 m, divided over two buildings. Over 90% is already pre-let to leading retailers in the home equipment and leisure sector, such as Castorama, Conforama, Boulanger and Cultura. For each of them their Coignières unit will be a reference store. The rest will consist of smaller units and restaurants. There will be a car park of 1,500 spaces. When all permits are obtained as expected the stores will open in 2008.
Corio will acquire the project for approximately €85 million (including costs) upon completion. Since not all the important permits have been obtained yet, the project is included in Corios variable pipeline.
The Coignières project will provide Corio a solid cash flow and will not result in an increase in management costs. It will add to Corios portfolio a high quality product with an interesting merchandising-mix at a prime location in a very tight market.
This transaction fits very well with Corios strategy to further exploit its existing strong position by means of new retail investments in its present core markets of the Netherlands (53%), France (23%), Italy (13%), Spain (7%) and Turkey (4%). Corios portfolio of €4.3 billion consists mainly of shopping centres. Important criteria for Corio are that its shopping centres should be and remain dominant in their catchment area in terms of size and quality and offer potential for adding value. Corio adds value by means of active hands-on management in its core markets for the benefit of its tenants, consumers and shareholders.