Thor Equities Europe has closed on its acquisition of the retail space at 54 Rue de Rennes in Paris for €15 mln.
'We are pleased to complete the purchase of this premier asset on one of the most desirable retail streets in the Left Bank,' said Joseph Sitt, CEO of Thor Equities, an urban real estate development, leasing and management specialist.
Situated on the corner of Rue Bernard Palissy, 54 Rue de Rennes features 267 m2 currently let to Italian contemporary fashion company Stefanel. Thor has negotiated the departure of Stefanel one month after closing.
Rue de Rennes is among the prime shopping destinations in Paris, both for the number of stores and profusion of international retailers, according to Thor Equities. Close to the historical district of Saint-Germain-des-Prés, the area surrounding 54 Rue de Rennes boasts high-end brands such as Cartier, Montblanc, Rolex and Kenzo.
'With the acquisition of 54 Rue de Rennes, we are continuing to expand our portfolio of retail and mixed-use properties on high-street corridors in Paris, London, Madrid, Milan and other cities throughout Europe,' said Jared Hart, managing director of Thor Equities Europe.
Strategy
While both 54 Rue de Rennes itself and the ticket size are relatively small, the deal fits with Thor Equities' general strategy to purchase properties with extra potential in strong locations at attractive prices and rework them or bring in new tenants to add value before selling them on.
On 16 March, Thor Equities and Invesco Real Estate sold the Champs-Elysees flagship store of cosmetic retailer Kiko Milano in Paris to AEW Europe for €115 mln. This was almost double the price at which Thor acquired the property 18 months before when it was home to the Le Queen nightclub.
During the summer of 2016 Bloomberg reported that Thor Equities and Meyer Bergman agreed to sell a retail-led mixed-use building on the Champs-Elysees for about €490 mln. The reported sales price, if correct, would have reflected a 96% increase on what Meyer Bergman and Thor Equities paid for the property less than three years before. Meyer Bergman and Thor Equities declined to comment on the market rumour.
Thor Equities owns additional properties in Paris including 32 Rue des Archives and 51-53 Blvd. Haussmann; 65 Blvd. de la Croisette in Cannes; 5 Puerta del Sol, 11 Puerta del Sol and 16 Calle Fuencarral in Madrid; and 26 Via della Spiga in Milan. Thor Equities also owns a number of properties in London including 151 Wardour St., 145 Oxford St., 105-109 Oxford St., Bond Street House at 14 Clifford St, and the Burlington Arcade.
