REAL ESTATE - Property investor and manager Corio has entered into agreements on the extension and redevelopment of retail centres in France and Holland, for a total amount of over €85m, it has announced.
In an €18.3m transaction, Corio France has acquired 130,000m2 of land - adjacent to its retail centre Cote de Nacre in Caen - from NXP Semiconductors France. Of this plot, 67,000m2 will be used for the extension of the shopping centre. NXP will remain a tenant in the industrial building on the remaining part of the plot, Corio indicated.
"This is an excellent opportunity to extend and renovate the retail centre, which consists of 32,500m2, and includes a Carrefour hypermarket as a tenant," the company said.
"The renovation and extension with around 15,000m2 for an estimated amount of €45m will make Cote de Nacre even more successful in its catchment area," it added. If all the necessary occupancy permissions are obtained, the new centre could come into operation in 2009
In addition, Corio has signed a turnkey agreement with Fortis Property Development for the redevelopment of retail centre ‘t Circus on an A1 location in the centre of Dutch town of Almere.
Corio will invest €22m in the development of the 12,000m2 centre. The new complex is the successor of the 1980’s-built 2,600m2 shopping hall (containing 23 small units), which has been replaced with a three-storey building by Fortis.
"The net yield of the project will be considerably above the average of the current Dutch retail portfolio," Corio said. The new ‘t Circus is expected to be completed in 2008.
"Both transactions fit well within Corio’s strategy to add value to existing shopping centres, by local active hands-on management in the interest of consumers, retailers and Corio’s shareholders," the company commented.
Corio is an important investor and manager of retail centres in Europe. In addition to its €5bn portfolio, it has €1.6bn of projects in the pipeline. The company is listed at Euronext in Amsterdam and Paris.