Rodamco Europe N.V. reinforces its presence in France by acquiring the 'Tour Oxygène' pipeline project, next to its La Part Dieu shopping center in Lyon, France. The 'Tour Oxygène' has been acquired on a turnkey basis from Sogelym Steiner and Europequipement for 121 million. Estimated Theoretical Gross Annual Rent (TGRI) is at least 9 million. 'Tour Oxygène' is scheduled for delivery in Q4, 2008 and will be added to Rodamco Europe's 1.4 bn investment portfolio in France of which 98% is in the retail sector.
The pipeline project consists of a retail area 'Le Cours Oxygène' (GLA 15,000 m²) and a tower of 28 floors, of which 26 stories are offices ( 28,000 m²), located close to the La Part Dieu shopping center, the largest retail investment in Rodamco Europe's investment portfolio, consisting of 5 floors, GLA 110,000 m² of which Rodamco Europe owns 64,700 m². The value was 408 million per June 30 2005.
Rodamco Europe has taken a 60% stake (GLA 9,000 m²) in the retail area 'Le Cours Oxygène', (Redevco has taken the remaining 40%) and will wholly own the office tower and parking places. SNCF, the French state-owned railway company has pre-committed to leasing a majority of the office tower on a long‐term lease.
'Tour Oxygène' (including Le Cours Oxygène') will be situated in the heart of the la Part Dieu district, which is the main business location of Lyon and will be built on the "Lot R" parcel next to La Part Dieu shopping center, one of the last development sites in the city center. It is a dominant location that benefits from excellent transport facilities such as the subway, the bus terminal and the TGV station.
With La Part Dieu shopping center managed by Rodamco Europe, the acquisition of 60% of the new 'Cours Oxygène' retail space means Rodamco Europe will have the capacity to further improve the retail offer and reinforce La Part Dieu's position as the prime retail destination in the Lyon region.
CEO Maarten Hulshoff commented: "We are very pleased to have obtained a majority stake in the 'Tour Oxygène', situated next to La Part Dieu, one of our flagship shopping centers. This is fully in line with Rodamco Europe's strategy to strengthen our dominant position in our home markets throughout Europe. The investment in 'Tour Oxygène' also gives Rodamco Europe the opportunity to obtain attractive office property, which, for a large part is on long lease to a strong tenant."