Syntrus Achmea bags prime French high-street package

In its second direct investment abroad, Syntrus Achmea Real Estate & Finance has acquired the shares in the Grosvenor Retail European Properties III fund, the owner of a portfolio of 16 prime high-street retail properties in Paris, Bordeaux and Toulouse.

The transaction, which was made on behalf of a client, totals over €120 mln.

The vendor is a fund advised by Grosvenor Fund Management.

The portfolio comprises a total of about 10,000 m2 of retail space, which is fully occupied on a long-term basis by tenants including international brands Zara, H&M, Etam, Gap, Massimo Dutti and Petit Bateau. Two of the properties are located in Paris, while the other 14 are split evenly between the centres of Bordeaux and Toulouse.

'This is the second direct investment that we have made outside the Netherlands in the core markets of western Europe and follows the German residential portfolio that we purchased early last year,' said Henk Jagersma, CEO of Syntrus Achmea RE&F, the property arm of the Dutch asset manager and pension administrator. 'Prime high street properties in major European cities have been resilient for retailers throughout the recent downturn by continuing to draw shoppers and we expect them to outperform as the recovery takes hold.'

He added: 'We will continue to look for opportunities to acquire more core assets, such as residential and retail properties, in markets such as France and Germany.'

BNP Paribas REIM France advised Syntrus Achmea RE&F on the French portfolio acquisition and will be managing the assets. GFM was advised by Cushman & Wakefield and DC Advisory.

'Grosvenor Fund Management launched GREP in 2004, with a strategy to invest in core-plus high street retail assets in robust cities in Continental Europe. This portfolio has achieved a net total return to investors of more than 15% per annum over the hold period, noted Steve Cowen, managing director, Transactions, GFM Europe.

'We have been able to exploit numerous opportunities to add value during our period of ownership, including a redevelopment, 6 new lettings and 8 lease renewals. GFM continues to seek opportunities in high street retail in cities across Europe through other vehicles,' added Cowen.

Grosvenor Fund Management manages around €3 bn of assets in Europe, including a portfolio of 31 historical buildings in the heart of Lyon in France and Liverpool in the UK.

Syntrus Achmea RE&F is a specialised asset manager in real estate and mortgages with over €14 bn of assets under management. It invests in, finances and develops real estate for the investment portfolios of Dutch pension funds and other institutional investors. Parent group Syntrus Achmea looks after the pensions of more than three million people in the Netherlands on behalf of over 80 pension funds and has over €70 bn of assets under management.