The Groupe Casino-owned real estate company Mercialys has taken control of two properties from Monoprix, which it has earmarked for development.
With transfer tax included, the purchases of the Saint-Germain-en-Laye site and La Garenne-Colombes site cost €69.6 million.
In a press release, Mercialys said that the investment has “an immediate yield rate of 5.6% (based on rent paid since the acquisition by Monoprix under fixed-rent leases) before rolling out projects that will generate additional rent, as well as potential property development margins.”
“Mercialys is moving forward with the development of its high street retail business line, which, following the acquisition of seven Monoprix sites for transformation, represents nearly 5% of the total appraisal value of assets, including transfer taxes published at December 31, 2015,” it added.
The two new locations, purchased on 29 June, are being considered for residential development, with about €30 million to be invested as capital, and an IRR of nine per cent.
A key advantage of these Île-de-France acquisitions is their parking capacities, as well as their nearness to the city of Paris, Mercialys notes.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.