Hermes, Redevco buy second asset for European retail joint venture

Redevco and Hermes Investment Management have made their second joint venture real estate purchase.

The €250m investment programme, launched in October last year, bought a shopping centre in Lille for an undisclosed amount.

The 25,000sqm Le 31 on Rue de Béthune in central Lille will be redesigned and redeveloped into a retail-led mixed-use building, with completion scheduled for 2019.

Andrew Vaughan, chief executive at Redevco, said: “Aside from France, we will be looking for other opportunities of this kind elsewhere in the core markets of Western and Northern Europe.”

Chris Taylor, head of private markets at Hermes Investment Management, said: “We can provide holistic returns through the active management of this prominent asset whilst working in close alignment with our like-minded local partner.”

The partnership’s first deal was announced in October.

The L’Espace du Palais, in the French city of Rouen, was bought from KKR.

The 10,000sqm asset will be redeveloped, with completion due in 2019.