Union embarks on EUR 70m extension to Belgian mall

Union Investment is to invest around EUR 70 mln to extend Les Grands Prés shopping centre in the Belgian city of Mons. The move follows a decision by Swedish retail giant Ikea to build a new store on the site.

The scheme comprises 17,820 m² of retail space and has been owned by Union Investment's German open-ended real estate fund UniImmo: Europa since 2004.

The extension, which will be carried out by Foruminvest BV/City Mall, will add a further 8,650 m² of retail to the property. The opening of the new space is scheduled for the end of 2014.

The Ikea store, which will be connected to the shopping centre, will cover around 34,000 m². With the arrival of Ikea the mall, which has around five million visitors per year, is expected to secure an additional two million customers.

The expansion and restructuring of the space is expected to generate extra rental income of some EUR 4.5 mln a year. 'The arrival of Ikea and extension of the shopping centre will reinforce the position of Les Grands Prés in the wider region for the long term,' said Frank Billand, a member of the Management Board of Hamburg-based Union Investment Real Estate.

Les Grands Prés shopping centre opened in 2003. An 18,400 m² Carrefour supermarket is located inside the shopping centre, but does not form part of the Union Investment holdings.