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