PREF acquires second Paris retail park for €23.75 million (FR)

PREF, the specialist European Retail Warehouse Fund, advised by BL European Fund Management, has purchased Montgeron Retail Park in Paris, France, from clients of Foncière Arizona Investments. The price was in the region of €23.75 million, reflecting a net initial yield after acquisition costs of 6.25%.

The park is located in an established retail zone, 20 km south east of central Paris within the main Paris conurbation. The development comprises two retail terraces, one of 7,000 m² (of which 2,000 m² is owner occupied) and a second terrace of 7,405 m². In total there are eight units, with 528 car parking spaces.

The rental income derived from the park is in the region of €1.55 million per annum with an average rent of €124 per m². It is fully let to a strong range of tenants, including Electro Depot, Casa La Halle!, Babou, Sport 2000 and Animales. The owner occupied unit is traded by Gemo.

Montgeron represents PREF's second French retail park acquisition, following the purchase of the Corbeil-Essonnes Retail Park development in January 2006 for €48.5 million.l Corbeil-Essonnes is 100% pre-let and scheduled to open for trade in Summer 2007.

Valentine Beresford, director of British Land Fund Management Ltd, commented: "The acquisition of Montgeron will further enhance our presence in the southern Paris suburbs. Located in a strong regional marketplace, with an excellent catchment, the asset offers us a good opportunity to leverage value through an active asset management programme. The scheme is well let with passing rents that we view as being conservative and there is a real prospect for growth.

"This latest purchase will take the overall PREF portfolio, under contract or acquired, close to €630 million and 342,000 m² in fourteen schemes, once the development projects are completed."

PREF was represented by CB Richard Ellis and Le Breton & Associates.

Source: FD

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