Corio acquired the shopping centre Art de Vivre with a lettable area of approximately 20,500 m² for a total amount of â¬51.8 mln. Art de Vivre is located in the attractive and strong retail zone of Orgeval (district Yvelines) in the western wealthier part of the Paris region. This acquisition provides Corio France immediately a solid cash flow, with a high reversion and restructuring potential in the future.
Art de Vivre is easy accessible, located along the route nationale N13 at the intersection of the two main highways A13 and A14 in the western Paris area. The catchment area of 1.1 mln. inhabitants within twenty-minutes driving distance of the shopping centre has an above average income. The shopping centre is part of one of the strongest retail areas in the Paris region, the commercial area of Orgeval where Corio also recently acquired the Habitat building (see press release 26 July 2005).
Art de Vivre has a lettable area of approximately 20,500 m² divided over 53 units, including 5 medium-sized units, over two levels. The tenant-mix is currently oriented towards house equipment, decoration and leisure products with strong anchor tenants such as Bricorama, Darty, Animalis and L'Univers du Livre. The centre presently generates a total gross annual rent of â¬3.35 mln. and provides Corio a net initial yield over 6% with upward potential. As of 1 January 2006 Corio will integrate this asset under the SIIC regime, which is applicable for Corio's properties in France.
Art de Vivre has been built in 1975 and has recently been renovated partly. Corio France will take over the management of the shopping centre and sees opportunities to further improve, restructure and upgrade the shopping centre in due course. Since the rental levels in the centre are relatively low in comparison with market rents, there is potential to increase the rents at the end of the lease contracts especially after an improvement of the centre.
Strategy
This acquisition fits very well into Corio's strategy. Corio aims to further exploit its existing strong position in its present core markets (the Netherlands, France, Italy, Spain and Turkey), by means of new retail investments. Art de Vivre is an attractive addition to the retail portfolio of Corio France of 270,000 m² with a value of â¬706.5 mln. (being 73% of the total French portfolio of â¬961.6 mln. as of 30 June 2005). Corio's focus is on retail properties that are dominant in their catchment area and have potential to add value for the benefit of the tenants, the consumers and Corio's shareholders. Art de Vivre is a good running centre that will immediately contribute to Corio's earnings, with the potential to add value by restructuring and reletting in the coming years. Corio's shares are listed on the stock exchanges in Amsterdam and Paris, and are included in the Amsterdam Midcap Index (AMX).
Source: Corio
