MRM_REGISTRATION_DOCUMENT_2017

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Information on M.R.M.’s activities

Business overview

City centres

All things being equal, the volumes should therefore stabilise. Investors seeking returns will need to branch out to other locations, and above all to innovative products, be creative, and further incorporate the new expectations of users. The continued growth of the French market will involve its diversification, especially in alternative assets. The retail market Source: Excerpts from the annual study by Cushman & Wakefield “Market beat France Commerces – Bilan 2017” - Free translation. Economic climate The fourth quarter of 2017 ended with the passing of the 2018 Budget Law. In pushing through its first tax reforms, the government made great strides in its reform programme that began with Orders issued under Law 2016-1088 (known as the “loi travail”). A certain number of measures will successively support business demand, such as the reduction in corporate tax from 33.33% to 28% by the end of 2018 and the introduction of a 30% flat tax on investment income. Household consumption and purchasing power should get a boost with the progressive reduction in council tax and the abolition of health and unemployment contributions. On the eve of these reforms, business and household confidence both rose in the quarter by 2.6 and 4 points respectively. They are back to similar levels to those observed at the end of 2007. On the back of a solid global economic recovery, French growth should be able to count on its dual main drivers of consumption revived by the labour market and investment still supported by low interest rates. INSEE exceptionally revised its growth forecast for 2017 upwards to 1.9%, a level unseen since 2011 (2.1%). Q3 2017 saw the continued virtuous effect of 3.2% and 7.1% increases in the number of startups in France and Île-de-France respectively from Q3 2016 (annualised) amplified by a 7.3% fall in the number of bankruptcies in France and Greater Paris. This directly impacted trade sector job creation (106,000 in the second half of the year). Conversely, the decrease in the number of assisted contracts (government-subsidised jobs) led to a 38,000 fall in non-trade sector jobs over the same period. The 47 basis point drop year-on-year in the unemployment rate to 9.6% in Q4 2017 shows sustained net job creation of 68,000 in the second half of 2017 and a 0.1% reduction over one year in the number of Category A jobseekers (jobless people actively looking for any kind of work) to 3.45 million, the lowest in three years. The increase in the number of long- term jobseekers and persistent unemployment among older workers tempered this upturn. […]

Paris Tourism in Paris made a comeback in 2017 led by foreign tourists (+38% in Q2 2017) who represented over 55% of visitors to the capital and 46% of tourists in Île-de-France at mid-year. The influx of visitors boosted tourist consumption by 12% over the first half of the year compared with the same period the previous year, with €10.15 billion spent for the most part on Parisian retailers. The Right Bank of the Seine continued to dominate new store openings and accounted for over 70% of lettings in the capital. Personal goods remained the most active sector with around 44% of new store openings in Paris, followed by the restaurant (18%) and leisure sectors (12%). […] Totalling over 80% of new store openings in 2017, Paris retained its status as an international luxury capital and widened the gap with the provinces, increasing from 68% of new store openings nationwide to 82% in 2017. Provinces In the provinces, after personal goods (45% of new store openings in 2017), the food & beverage sector represented a significant share of the operations conducted this year in city centre retail, totalling almost one-third of rental transactions carried out. Lyon and Marseille accounted for half of new store openings in the provinces, with Lyon by far the leading provincial market for retail property. Rental values: the end of the boom The visible trend over the past few months seemed to solidify as rental values ended their meteoric ascent. Faced with demand conditioned by increasingly strict economic profitability criteria, lessors are ready to revise their expectations of rental revenue in order to maintain the occupancy rates of their assets at reasonable levels. This phenomenon should be confirmed over the coming months by the compression of rental values in certain high streets. […]

M.R.M. 2017 REGISTRATION DOCUMENT

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