Corio has sold its shops in the complex known as 'Au Pauvre Diable' in Dijon, France, for 20.7 million. In addition, the Habitat premises at Orgeval, 30 kilometres to the west of Paris, have been bought for 5.7 million. This complex, which houses one of Habitat's first and largest stores as well as its head office, will be restructured and renovated in about eighteen months which will take a total amount of approximately 3.5 million.
Au Pauvre Diable, Dijon, France.
In the Netherlands, the industrial complex at Broekermeerstraat 135, Hoofddorp has been sold for 6.5 million.
Furthermore, the financial vacancy in the renovated office buildings MB 9 in Nanterre, France and at Professor E.M. Meijerslaan 3 in Amstelveen, the Netherlands has been reduced to zero.
The 'Au Pauvre Diable' building is located on Rue de la Liberté, one of the prime shopping streets in Dijon. The three retail units sold, with a total lettable floor area of 3,900 m², are leased to H&M, Sephora and the Phone House. The property was bought in 2000 and was delivered after refurbishment in 2001. The shops were sold to a fund managed by AXA Reim for 20.7 million, 10% above the book value at the end of March 2005.
The Habitat building in Orgeval is situated on 18,000 m² of land and has a lettable floor area of about 10,000 m² and 315 parking spaces. The property is currently in use by Habitat as a store and as its head office, and is located right on the 'Route des Quarante Sous', the 'route national' from Paris to Normandy. Orgeval, 30 kilometres to the west of Paris, is one of the most important commercial areas in the vicinity of Paris, with the 'Art de Vivre' shopping centre (specializing in home furnishings and household products) and retail warehouses accommodating more than 50 major nationally operating tenants. The property will be restructured and renovated in about eighteen months, with new large retail units, more parking spaces and improved access all being created.
This acquisition fits in with Corio's strategy, since the property is at an excellent location in a commercial environment that is dominant in its catchment area. Furthermore, it offers the opportunity for adding value for the benefit of tenants, consumers, and ultimately the shareholders. In Dijon, though, Corio saw no further opportunities for adding value to 'Au Pauvre Diable'.
The business space at Broekermeerstraat 135 in Hoofddorp, with a lettable floor area of 16,900 m², was sold to a single owner occupier. The property was bought in 1992 and has now been sold for 6.5 million, 8% above the book value at the end of March 2005. It has been vacant for some time, although rent was paid till 1 June 2005. The property was sold as it offered little flexibility for leasing to several tenants and therefore little added value could be provided by Corio.
Since the renovation the last available space (3,703 m²) in the office building MB 9 (lettable area 9,200 m²) at Nanterre is presently leased for nine years without rent-free periods. Besides, the renovated office property at Professor E.M. Meijerslaan 3 (lettable area 8,300 m²) in Amstelveen, has now been put into use on a market conform basis, with an option to purchase.
Corio's strategic focus is to invest in shopping centres and retail property in Europe, which currently make up 76% of the total portfolio of 4.1 billion. Corio adds value through active, hands-on management in its core countries: the Netherlands (54% of the total portfolio), France (22%), Italy (13%), Spain (7%) and Turkey (4%). The company's shares are listed on the Euronext Amsterdam, and since December 2004 also on the Euronext Paris.
Source: Corio
