French SIIC Mercialys said it is buying the Caserne de Bonne shopping centre in Grenoble for around EUR 92 mln. The retail specialist expects to sign the final purchase agreement during the second half of 2010.
French SIIC Mercialys said it is buying the Caserne de Bonne shopping centre in Grenoble for around EUR 92 mln. The retail specialist expects to sign the final purchase agreement during the second half of 2010.
Le Caserne de Bonne is the result of a vast city-centre regeneration launched in 2006 by the city of Grenoble, which had appointed developer Apsys to build the project. The scheme comprises 17,300 m2 of retail space including nine large and mid-size stores, 38 small shops, five kiosks and five restaurants, 2,800 m2 of office space and 300 parking spaces. The occupancy rate in the complex currently amounts to 67.5%.
The site forms part of a broader programme to redevelop 8.5 hectares of old military land and includes 850 apartments, a hotel residence, a four-star hotel, a student residence, a cinema, a swimming pool, a school and two landscaped parks. Mercialys expects the property to generate around EUR 5.9 mln of annual rental income.
In 2009, the company completed its largest acquisition since its IPO five years ago with the purchase of a portfolio of 25 properties from retailer Casino for EUR 334 mln. In its annual figures published last week, the company said the value of its assets increased by 18.2% over the course of 2009 to over EUR 2.4 bn. Rental revenues rose by 15.5% to EUR 134 mln last year.
Mercialys is proposing a dividend of EUR 1 per share for 2009, up 14% on 2008's figure. For 2010, the company aims to achieve year-on-year growth of close to 10% in rental revenues and recurring operating cash flow.