Corio acquires factory outlet development in Toulouse region

Retail property specialist Corio has acquired 75% of the shares of the first phase of the Moulin de Nailloux factory outlet development in the Toulouse region of France for EUR 44 mln. The investment volume reflects a net yield of 8.4%.

The remainder of the shares is owned by local development company Cogep. Corio said in a statement that it has the possibility to acquire the remaining 25% of the shares at market value after six years. Phase one of the project is expected to open in 2011. The project will be part of Corio's fixed committed pipeline.

Phase one and two will comprise a total gross leasable area (GLA) of 30,900 m². At completion of both phases Moulin de Nailloux will have 125 shops and 1,800 parking spaces. Phase one will be 70/80 shops on a GLA of 22,100 m². If the first phase proves to be successful, the second phase of 8,800 m² will be carried out.

The project is located along the A66 motorway at exit 1, which is 15 minutes from the Toulouse ring road and 30 minutes from the city centre. Advantail is responsible for the concept, leasing and will perform the management (subject to performance targets) of the centre.

Toulouse agglomeration has 1.12 million inhabitants with 437,100 in the city centre, making it France's fourth city by size. INSEE (French national statistic) anticipates a 21.8% increase in population over 2005-2030. The city is above the national average in terms of GDP growth, income per capita and working population percentage. The area has a total catchment (90 minutes) of 2.3 million people.

Corio said that there is no other factory outlet in the Toulouse region. The closest competitor is in Bordeaux at a distance of 300 kilometres.