VastNed strengthens position in France

Dutch listed property fund VastNed Retail has acquired a stake in the Carrefour Limoges-Corgnac shopping centre in south-central France for EUR 18 mln.

Chief investment officer Hans Pars said VastNed Retail is keen to expand its position further in France. 'This acquisition clearly shows that the French investment market — in contrast to the Dutch market for example — is a two-tier market. Medium-sized shopping centres in medium-sized cities can often still be acquired at very attractive prices.'

Carrefour Limoges-Corgnac is located in the west of Limoges (population 135,000) and has a total floor space of 22,800 m². The centre was recently renovated and expanded.

The anchor tenant is a Carrefour hypermarket with a floor space of 6,800 m². There are another 53 retail units with a lettable space of 11,837 m2, a petrol station and parking for 950 cars. VastNed has bought 26 retail units (5.587 m2), equalling 47.1% of the centre excluding the hypermarket.

The part of the centre acquired by VastNed is leased by a number of leading French and international retail chains, including Armand Thierry, Okaidi, Nocibe and Internity. The average rent is about EUR 250 per m². With three quarters of this part of the centre leased, the theoretical gross annual rent comes to EUR 1.3 mln. VastNed said the board of management is confident of leasing the remainder in the near future. The net yield when for the centre in a fully -leased state to 6.9%.