Vastned makes foray into Bordeaux

Pan-European retail property fund VastNed Retail has entered the Bordeaux retail market with the acquisition of a prime high-street property portfolio from a private investor. The transaction represents an investment of some EUR 31 mln, reflecting a net initial yield of 5%.

The acquisition relates to nine high-street shops in the heart of Bordeaux, locally referred to as the Golden Triangle. The total lettable retail floor area is 2,850 m². The portfolio also includes some 600 m² office space and 25 apartments. The retail part represents 83% of the total rental income. The gross rental income is EUR 1.7 mln per annum at an occupancy rate of 97.1%.

Among the tenants are both national and international retail chains such as shoe retailer Bata, surf fashion chain Oxbow, Etam Lingerie and designer fashion retailer Max Mara.

'This cluster of prime quality high street shops is our first foray into the promising Bordeaux retail market,' said Benoit Dantec, VastNed Retail's country manager France. 'Taking into account the number of inhabitants, Bordeaux' dominant position within its region and the unique nature of the inner city, I am convinced this acquisition will strengthen the high street backbone of the French portfolio.'

Taco de Groot, Chief Investment Officer of VastNed Retail, added: 'This acquisition is a great example of what we want. Not just retail space, but shops embedded in the heart of the city. The size of the Bordeaux portfolio is a major step towards achieving our goal of raising the high street component from 55% to 65% across our pan-European property portfolio.'