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«At the 18th of March Corio has officially acquired "Grand Littoral".
Grand Littoral is a dominant super regional shopping centre in Marseille. This second largest city in France offers more than average economic and demographic perspective. The shopping centre has substantial reversionary potential, part of which can be realised in 2008. On top of this there are several long term development opportunities. The acquisition of Grand Littoral is a valuable addition to Corio’s portfolio.
Size and locationGrand Littoral is the fourth largest regional shopping centre in France, with total GLA of over 110,000 m². It is located in the 16th arrondissement, north of Marseille along the A7 highway between Marignane airport and the Marseille town centre. The centre dominates its surrounding area and benefits from an excellent visibility from the highways. The primary catchment area is estimated at 600,000 people, in a larger influence zone of 1.6 million people. Grand Littoral currently attracts 13 million visitors per year resulting in sales over € 350 million.
Perspective
The Net Initial Yield will amount to 4.35% at year-end 2008, including indexation and completion of reletting of the ‘fourth zone’. A positive impact of long term factors, as a more than average GDP growth in Marseille compared to the average of France, and the relative strong demographic growth in Marseille through continuing urbanisation, will further increase the yield. On top of this Corio’s pro active management will show a positive impact on the results of the centre:
· Reopening in October 2007 of Zone 4.
Currently 84% of this part of the centre is leased to prominent tenants as: New Yorker, Esprit, King Jouet, MEXX, Pull & Bear,Bershka, Sephora, Bata, Quicksilver, Soho. In this part also a new restaurant area will be located.
· Reversionary potential.
Rental contracts which expire will be relet or renewed against higher rents; in 2008 56% of rental contracts representing 52% of rent will expire. Reversionary potential is estimated at about 17%, when 2006 and 2007 rental transactions promise even more potential.
· Improve rental mix.
Restaurants (ca 10) spread over the centre will be moved to the new restaurant area in Zone 4. The then available space will be leased to new tenants with positive impact on the yield.
· Restructuring and expansion.
Plans are made for restructuring of about 6.000 m2. There is also zoning potential to add about 22.000 m2 GLA. Included in the acquisition price of the centre is about 13.000 m2 adjacent land. In addition it is possible to buy another 80.000 m2.
Grand’Littoral, Marseille
Total GLA: ca. 110.000 m² GLA;
gallery ca. 42.300 m2, two covered shopping storeys, 15 medium sized units (partly uncovered) of 41.300 m2, and Carrefour hypermarket of 28.000 m2 GLA. Corio GLA: gallery ca. 42.300 m² GLA of 215 units, and 8 medium sized units of a total GLA of 13.200 m2 (55% of the owners association).
Year contruction: 1996
Type: regional shopping center
Parking: ca 5.000 parking spaces
Acquisition price: € 385 m (exclusive transaction cost)
Acquisition date: 18 March 2008
Profile Corio
Corio is one of the largest listed property investment companies with a focus on retail in Europe. Corio’s portfolio of € 6.5 billion consists for 83% of shopping centres in The Netherlands, France, Italy, Spain and Turkey. Corio manages its own shopping centres». (CS della Società)
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