Redevco, the Pan-European retail real estate investment manager, acting on behalf of one of its investor clients, has acquired a super prime retail asset in the heart of Paris’ luxury retail area, in Rue de la Paix from the global real estate investment manager Savills Investment Management.
Income is a key driver of long-term performance in property; Income consistently provides a stable and significant proportion of total returns over the long term and our focus is weighted towards securing and increasing income, which preserves and enhances the underlying value in property, to generate higher risk adjusted returns.
The amount of the transaction is not being disclosed.
The 740 sq. m. property, comprising two retail units, is exceptionally well-located on the Rue de la Paix only a few 100 metres away from the renowned luxury retail location Place Vendôme. This premium retail area is home to famous Parisian hotels and restaurants including Le Ritz, Lemeurice and Le Carré des Feuillants, generating a significant flow of wealthy tourists. The property is currently occupied by Tiffany & Co and Glasshütte.
Andrew Vaughan, Redevco’s CEO, said: “We see demand for luxury retail locations increasing rapidly, with the luxury sector being one of the main drivers of the Paris retail market. With little suitable property available in the core high-end retail areas in the city, like Avenue des Champs Elysées, Rue Saint-Honoré and Place Vendôme, neighbouring streets benefit and become progressively popular with new luxury retailers.”
Ian Jones, Fund Director for the European Retail Fund at Savills IM, said: “This was the fund’s first acquisition, a prime retail building in the heart of Paris’s prime shopping district, and offered a combination of attractive income and asset management opportunities which we have successfully completed. We are delighted to have agreed the sale to a buyer of the quality of Redevco.”
Savills was instructed for the sale on behalf of Savills IM. The seller was advised by Simmons & Simmons, Fidal, C&C Notaires and Cabinet MDA, while Gide, Ernst & Young, Allez et Associés and Elan advised the buyer.
Redevco is an independent, pan-European real estate investment management company specialised in retail property. The 400 assets under management are spread across the strongest retail concentrations throughout Europe. Our highly experienced professionals purchase, develop, let and manage properties, ensuring that the portfolios optimally reflect the needs of our clients. We believe in long term investments where quality and sustainability are key. For further information about Redevco please visit www.redevco.com.
Citigate Dewe Rogerson
Patrick Evans / Stephen Sheppard / James Madsen / Alice Stewart
Tel: +44 (0)20 7282 2966
Savills Investment Management