MRM - 2020 Universal Registration Document

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Information on M.R.M.’s activities

Presentation of the Company

1.4.2 The retail real estate market in 2020

The retail investment market in France Source: CBRE Research “Retail Investment Q4 2020 - France Real Estate Market Snapshot”.

A year finally preserved

Key points • outcome of the majority of deals started before the crisis; • €4.6 billion invested: €2.1 billion in high street, €1.4 billion in retail centres, €695 million in retail parks and €396 million of various assets (supermarkets, hyper markets, mixed assets, etc.); • Paris and its suburbs remain privileged, in particular on the prime locations.

Prime yield

High-street Paris

3.10% 3.25% 4.25% 4.30%

High-street Regions

Retail centres Paris Region

Retail centres Regions

Conduction of deals triggered pre-crisis In 2020, many imported deals have materialised, most of them triggered before the crisis. Consequently, invested volumes during the frst three quarters are equivalent to the ones of the previous years, at around €3 billion. Over the year, invested volumes amount to €4.6 billion against €6.4 billion in 2019, of which -30.5%. This contraction is mainly due to the last quarter, during which the unfavourable economic climate had not reassured the project holders enough. Sign of a certain robustness of the retail sector and despite the questionning around the distribution model and the successive closures, the expenditure of retail investments is rising throughout the market, representing 17% against 15% in average over 2016-2019. Paris Region remains privileged and gathers more than half (52%) of investments completed in 2020. In regions, the cities of Lyon (€297 million), Dijon (€255 million) and Rennes (€237 million) have attracted the most fluxes. The French institutionals have been the principal buyers of business assets (52% at €2.4 billion), followed by the Germans (€288 billion), with a unique High Street deal, on the rue du Faubourg Saint-Honoré. With a major transaction, Canada is the third investor in the France business assets (€260 million).

Standard formats continue to attract

High street: refuge format High-street retail remains the most popular product typology. They totaled €2.1 million in 2020, slightly less than half of the registered retail volume. The appetence for this market segment remains signifcant, particularly for luxury shops (that seem to be resisting better to the crisis) as shown by the acquisition of the INVESCO of 2 luxury shops rue du Faubourg Saint-Honoré for €288 billion, at a rate of 2.90%. Furthermore, the interest for high potential locations persists. In that respect, the BMO investment funds purchase several cells on the Champs Elysées, that despite poor results these past few years, does not seem to be less popular. Another example, the Patrimonia property company become the owners of “Dior Héritage” avenue Montaigne. Given the governmental measures and the rise of convenience stores, the investors’ appetite for the food industry sector sharpens and is particularly shown by the acquisition of 3 Monoprix shops via the SCI AMR.

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT

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