Netherlands-based VastNed Retail has acquired a EUR 97 mln high-street portfolio in Lille, France's fourth largest city. Comprising 56 shops and over 100 apartments, the properties were bought from two private individuals at a net initial yield of 5% and have a total lettable area of 12,000 m[sup]2[/sup].
Netherlands-based VastNed Retail has acquired a EUR 97 mln high-street portfolio in Lille, France's fourth largest city. Comprising 56 shops and over 100 apartments, the properties were bought from two private individuals at a net initial yield of 5% and have a total lettable area of 12,000 m2.
Average yearly rent is EUR 290 per m2, some 37% below market level. VastNed says it is confident that it will be able to unlock the reversionary potential in the next few years - supply is tight and many international retailers have yet to enter Lille’s retail market.
Twenty of the shops, let to French and international tenants such as Bata, Fuji, Diesel and Louis Vuitton, are in the upmarket shopping area near Rue de la Monnaie, the other 25 are in the mass market retail zone around Rue du Sec Arembault.
Commenting on the rich architectural heritage of downtown Lille, Benoit Dantec, managing director of VastNed Retail in France, said that the deal was a 'once in a lifetime opportunity'. In addition, Lille has a young, dynamic population, income levels are above average and international access and economic prospects are both very good.
The acquisition brings VastNed Retail’s total volume in France to EUR 430 mln, setting it well on its way to the EUR 500 mln critical mass threshold laid out in its strategy.
