Yesterday, Corio Nederland Retail and the municipality of Nieuwegein signed the final agreements for the revitalisation of the shopping center Cityplaza in Nieuwegein. The plan consists of a renovation of the existing shopping center (23.600 mÂ²) and an extension with another 26.600 mÂ², creating a shopping center with a total lettable area of 48.200 mÂ².
Corio will acquire the project turn key in two phases as of 2010. The additional investment will amount to about â¬84 million.
The shopping center, built in the 1980´s, is the main shopping center and city center of the municipality of Nieuwegein. There is almost no competition in the direct catchment area. The population of Nieuwegein, located south of Utrecht, has increased rapidly while the retail floorspace in the area hardly increased. The revitalisation of Cityplaza is a unique chance to exploit the potential in an extensive catchment area with above average consumer spending.
The development combination ING Real Estate Development / AM Vastgoed is responsible for the renovation and the development of the total project. They will also carry the letting risk, in which they will, together with Corio as investor, pursue to realise an optimal tenant-mix in both the existing part and the new part of the shopping center by moving and choosing tenants. The net initial yield after the renovation and extension will be at least 7%. In 2007 building will start.
This investment fits very well into Corio´s strategy. The focus of Corio is on continuously optimising and extending the current portfolio in its home countries (the Netherlands, France, Italy and Spain) amongst others by adjusting the centres to the desires and demand of the consumers and the catchment area. This provides moreover an additional value for our consumers, tenants and centres and finally of course our shareholder.