Dutch based pan-European retail property investor VastNed Retail strenghtens its French high street shop portfolio with the acquisition of a portfolio of six high street shops and one retail warehousing unit for €18 million in total.
All six high street shops are located in prime retail locations in Paris, Marseille, Troyes and Arras and are let to strong national retailers such as Promod, Nocibé, Celio, Marlboro Classics and Made in Sport.
The total lettable floor space amounts to 3,022 m² which is to generate a gross annual rent of €900,000. In addition the company acquired 2,800 m² in residential building rights, which are planned to be sold in the near future. Taking this into account the net initial yield amounts to 5.1%.
Seller of the portfolio is PW France, part of the ProWinko group of companies.
Hans Pars, Chief Investment Officer of VastNed Retail, commented: "With this and other acquisitions made in France this year, our French portfolio has grown over 15% in size, which is fully in line with our goal to expand our French activities. Our French portfolio offers much reversionary potential, part of which already will be unlocked in 2007, as rental indexations are expected at a level of 7.05%."