Prudential have closed a forward purchase contract with developer Virgil for the reconstruction of the Lyon landmark property, Grand Bazar de Lyon which occupies a prime position on Lyon's premier retail street, rue de la RÃ©publique. Once redeveloped, the property will provide a flagship Monoprix store as well as 1,564 m2 of retail, a large car park and 2,638 m2 of prime office space.
Grand Bazar de Lyon.
Delivery is planned for the second quarter of 2007. The retail and 262 car parking spaces are prelet to H&M and Lyon Parc Auto respectively, together accounting for 75% of the income of the asset. Prudential's â¬26.76 million investment should provide an overall property yield of 7% once the offices are let. Monoprix will remain owner-occupier of its store.
After rue de Rennes in Paris and rue d'Antibes in Cannes, this is Prudential's third prime high street retail acquisition in France in the last two years. Chris Taylor, Head of Acquisitions at Prudential said, âWe continue to identify value within core high street markets, notably in France.â
LaSalle Investment Management and Lovells advised the purchaser, whilst the capital markets team of Jones Lang LaSalle Lyon advised Virgil. Notaries for the deal were Etude Leufflen (purchaser) and Etude Mahot (vendor).
Source: LaSalle Investment Management