Rodamco Europe further strengthens its position in France (NL/FR)

Rodamco Europe further strengthens its position in dominant shopping centers in Paris, France by expanding its presence in the Paris top shopping centers Velizy 2 and Parly 2. With this transaction Rodamco Europe's stake in Velizy 2 increases to 27.1% and in Parly 2 to 69.3%.

Velizy 2
In a swap transaction with the French real estate company Union Financière de Gestion (UFG), Rodamco Europe acquires a total gross lettable area (GLA) of 3,660 m², comprising four retail units, for an amount of €19.4 million, at a net initial yield of 4.5%. The retail units are leased to Sephora, Pizza Del Arte, La Brioche Dorée and El Rancho. UFG in turn acquires GLA 12,438 m² of offices in the Credit Lyonnais tower in Lyon, for the same value.
This transaction increases Rodamco Europe's stake in Velizy 2 from 23.7% to 27.1%. The transfer of ownership took place on 31 August 2006. On January 12, 2006 Rodamco Europe already announced an expansion of ownership in Velizy 2 from 17.8% to 23.7%, which resulted in Rodamco Europe becoming the largest owner in the dominant shopping center in de Paris region, Velizy 2, together with the French retail group Auchan.
In addition to this transaction, Rodamco Europe has divested to UFG some non strategic retail units in Bordeaux and Paris.
In Bordeaux (Villeneuve d'Oron) a total GLA of 6,522 m² was sold for the amount of €11.3 million at a net initial yield of 7.5 %. In Paris (Bobigny) a total GLA of 6,115 m² was sold for €12.2 million at a net initial yield of 8%. Transfer of the ownership also took place on 31 August 2006.
All divestments have been sold at book value or around book value.
These transactions are in line with Rodamco Europe's strategy to invest in dominant shopping centers with upside potential such as extension possibilities, and divestment of lower quality assets. 
Parly 2In Parly 2 Rodamco Europe has acquired from SCI Paripar 2 retail units with a total GLA of 346 m², for an amount of €6.5 million and at a net initial yield of 4.9%. The retail units are leased to Vertbaudet and Geneviève Lethu.
This strategic investment increases Rodamco Europe's ownership in Parly 2 from 68.7% to 69.3%. Parly 2 is a dominant shopping center in the Paris region. Rodamco Europe is also planning a major redevelopment and extension.
Rodamco Europe's position in FranceRodamco Europe's property portfolio in France, mostly shopping centers, are valued at €1.7 billion (30 June 2006). This is 17.7% of Rodamco Europe's total property assets of €9.9 billion (30 June 2006). It includes one office building and nine shopping centers, of which five are located in Paris, Rodamco Europe's number two city in its European retail portfolio. 

Source: Rodamco Europe

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