Corio has acquired 75.8% of the Saint-Jacques shopping center located in Metz in France for 96.4 million at a net initial yield of 6.6%. The total shopping center comprises 21,000 m² GLA and 1,200 parking units. With this acquisition Corio acquired 15,762 m² of the total GLA and all 1,200 parking units. The remainder is owned by private co-owners.
Metz is located in the north eastern part of France, at approximately 300 km of Paris, 60 km of Luxembourg and 50 km of Germany. Metz is the administrative capital of the Lorraine region. The catchment area (within 30 minutes' drive) comprises around 480,000 persons. The surrounding area of the center is a dense urban environment of residential and offices.
Opened in 1976, the Saint-Jacques shopping center is directly connected to Rue Serpenoise, the main retail street of Metz, it benefits from nine entrances that are directly connected to main shopping streets in Metz. The complex is currently anchored by FNAC and Simply Market (the supermarket formula of Group Auchan).
It offers in total 105 different shops over three floors. Saint-Jacques tenant mix is composed of shops (11,473 m²), Medium Sized Units (2,700 m²) and Large Sized Units (6,827 m²). The current financial vacancy rate is 3.8% that will be covered by a six to 12 months rental guarantee depending on each unit. As a result of its perfect location and attractive commercial offer, Saint Jacques attracts 13 million visitors per year.
Competition is mainly positioned outside the city and consists of periphery shopping centers anchored by a hypermarket and a small (17 shops) to medium size (62 shops) gallery plus big boxes areas. Also a factory outlet center Marques Avenue is located to the north of the city. Corio expects that with its hands-on management it can enhance the performance of the center by transforming it into a 'Favorite Meeting Place'.