Corio has decided to (re)develop the office building 'Le Newton' in Clamart, in the southwest of Paris that is part of its portfolio since 1999. This development opportunity will result in a new, high quality, flexible office building of 42,000 m² within a park environment. The Le Newton project will be added for an investment amount of approximately €120 million to the fixed pipeline and is expected to be completed in the first half of 2009.
Clamart is located 10 kilometres to the southwest of Paris, close to the A86 (second ring of Paris), A6 and N118 motorways. Orly international airport is at 10 minutes driving distance. The location will benefit from the opening of the new direct tram link between Paris, Clamart and Velizy in 2009/2010, with a station within 100 metres of Le Newton. Clamart is a new emerging office location which is developing fast following the recent settlement of several major (inter)national companies.
Corio has been owner since 1999 of the 12,000-m² office building, built in the mid sixties on a 25,000-m² plot of land in Clamart. After the tenant moved out, Corio has taken advantage of the zoning potential of the site and obtained all administrative authorizations to build a new 42,000-m² office building with high international quality standards. The building will consist of three different, but connected parts, which can be leased as a whole or in parts. The floors will range from 1,500 to 2.200 m² with high flexibility and the basement will offer approximately 1,400 parking spaces (1 space for 28 m²).
Corio anticipates that current positive office market developments both from an occupier demand and investor perspective will continue in the next few years given the equilibrium between supply and demand. Following the 2.6-million m² record take up of office space in 2006 and the reducing vacancy rates that currently are around the friction level of 5% in the Parisian region, a further increase of rental values may be expected. The Le Newton project will perfectly fit with the increasing demand for well located, high quality offices against relatively attractive rents. In a context of increasing rents and decreasing immediate availability of new offices, the size of the Le Newton project will offer companies the opportunity to rationalise their accommodation and to make savings against a rent of around €230 per m² in comparison to the average €300 per m² for the Parisian region.