Rodamco Europe expands its ownership in Velizy 2 shopping center in Paris' region (NL/FR)

Rodamco Europe NV reinforces its presence in Velizy 2 and France by purchasing an additional 4,720 m² of retail units in Velizy 2 shopping center, located in Western Paris. These units are leased to H&M, Andaska and Europa Quartz for an annual gross rent of €2.3 million, with an estimated reversionary potential of 25% and a net initial yield of 4%. The units are acquired from Galeries Lafayettes for an amount of €52 million. The stake of Rodamco Europe in the co-ownership of Velizy 2 increases from 17.8% to 23.7%.

CEO Maarten Hulshoff: "This strategic acquisition makes Rodamco Europe the second largest investor in Velizy 2 after Auchan, which also gives us strategic access to a potential extension of the shopping center. Furthermore, there is an estimated reversionary potential of 25%, which gives us the opportunity to increase rents in the future".

Velizy 2 is one of the largest regional shopping centers in France, with a total gross lettable area of 98.000 m², 165 shops, anchored by an Auchan hypermarket and a Printemps department store. Located in Western Paris, Velizy 2 generates an annual turnover of €842 million and has 18 million visitors per year. A substantial renovation project is currently in process, with a total budget of €30 million and an estimated completion in 2007.

Velizy 2 is Rodamco Europe's third largest asset in France with an estimated value of €207 million. Rodamco Europe's portfolio in France is valued at approximately €1.5 billion, it includes nine shopping centers, of which five are located in Paris Region (Parly 2, Velizy 2, les Ulis 2, Côté Seine and Bobigny 2), and two office buildings (3% of the total portfolio).

Source: Rodamco Europe

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