Rodamco Europe acquires Le Havre shopping centre

Rotterdam-based Rodamco Europe has strengthened its position in the French retail property sector with the acquisition of the Docks Vauban shopping and leisure centre project in the harbour area of Le Havre. Vinci Immobilier and ING Real Estate Development have signed an agreement with Rodamco to sell the project for an amount of EUR 97 mln.

The former Le Havre docklands will be entirely renovated and developed into a 66,000 m² retail and leisure centre including some cultural facilities. Based on the purchase price, Rodamco Europe said the expected initial yield for the Docks Vauban transaction is 6.5%. Some 50% of the total retail area has already been pre-let to tenants such as Gaumont, Planète Saturn, Baobab, H&M, La Grande Récré, Plein Ciel, Pizza Del Arte, la Cure Gourmande.

Vinci Construction has been retained to oversee the renovation and refurbishment works, which are under way. Completion is scheduled for late 2008.

In January this year, ING Real Estate Development purchased 60,000 m² of land for the development of the new retail and leisure centre at Docks Vauban. The Docks Vauban project involves refurbishment of an existing building previously used as a storage facility for cotton, cocoa, coffee, spices and tobacco.

Meanwhile, the tender offer made by French property giant Unibail for Rodamco Europe shares is to close on 20 June. The board of Rodamco Europe expects its shareholders to back the merger with Unibail to create Europe's largest publicly traded property company. Speculation last week that Australian mall specialist Westfield was preparing to mount a counter-bid has proved unfounded.