The joint venture vehicle established last year by Hermes Investment Management and pan-European retail real estate specialist Redevco has carried out its first transaction in the French city Rouen.
The retail property, L’Espace du Palais, was acquired from a fund advised by KKR and its operating partner Seefar. The price of the transaction was not disclosed.
The deal marks the start of a €250 mln acquisition programme agreed by Hermes and Redevco for their joint venture, which targets investments in high street properties, shopping centres and retail parks in need of hands-on asset management in France, Germany, the Benelux countries and the Nordic region.
Andrew Vaughan, CEO of Redevco, said: ‘This investment matches perfectly with the joint venture’s strategy as it offers significant scope for value creation through refurbishment and astute asset management...We are looking to extend Redevco’s platform through more acquisitions similar to this one in Rouen.’
The property in Rouen, located 130 km northwest of Paris, comprises around 10,000 m2 and 30 units with Fnac as its anchor tenant. Following its repositioning, the full deployment of the asset is planned for 2019.
