MRM_REGISTRATION_DOCUMENT_2017

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Information on M.R.M.’s activities

Business overview

A mixed portfolio that is being refocused

31/12/2017

31/12/2016

Value excl. transfer taxes

€199.6m

€197.8m

+0.9% vs 31/12/2016

-12.4% vs 31/12/2015

+0.9% excl. effect of disposals

+5.7% excl. effect of disposals

Total area

103,564 sqm

104,973 sqm

Value breakdown

80% retail/20% office properties

77% retail/23% office properties

Retail property portfolio The Group’s retail properties are located in the Paris region and in large cities in the provinces. The type of assets in this category is highly diversified. It consists of shopping centres and malls, highstreet retail units, independent suburban retail premises and premises in retail parks. The vast majority of the 126 retail property tenants are national and international brands. Together, these retailers account for 78% of gross annualised rent. As of 1 January 2018, the retail property portfolio represented an area of 84,935 sqm and was valued at €159.0 million excluding transfer taxes. Its surface area occupancy rate was 76% compared with 84% one year earlier. During 2017, 11 leases (1) were signed for an annual rent of €0.8 million. The retail portfolio generated a net annualised rent (2) of €7.4 million as of 1 January 2018, down 6.1% from 1 January 2017. However, all leases signed in 2017 had not yet taken effect as of 31 December 2017. As such, the leases signed will take effect on a staggered basis until mid-2018 and will allow for an additional potential three point increase of the occupancy rate for the retail portfolio. During 2017, investments in the properties portfolio stood at €8.0 million. These were primarily: • The reconfiguration and extension of Carré Vélizy, a mixed retail/office development located in Vélizy-Villacoublay opposite the Vélizy 2 shopping centre. Work on this site, which began at the end of 2016 with a view to renovating 1,000 sqm to house Gautier and Indiana Café outlets, was completed in 2017. The new retail outlets enhance the site’s commercial appeal and were opened to the public in the third quarter of 2017;

• The acquisition of a co-ownership unit in the Aria Parc retail park in Allonnes. In June 2017, M.R.M. acquired the last remaining retail unit it did not own in the retail park. The 1,500 sqm unit was leased by Basic-Fit (a leading European chain of fitness studios) in early January 2017 for a period of ten years, including a firm lease of nine years. The acquisition amount was €1.8 million excluding transfer taxes. Coupled with the 2,300 sqm extension programme to house a new anchor brand (the homeware store Maison Dépôt), it increased the surface area of the Aria Parc retail park, of which M.R.M. is now the sole owner, from 9,000 sqm to 12,800 sqm; • The renovation of the Sud Canal shopping centre in Saint- Quentin-en-Yvelines. After completing the reconfiguration of 5,000 sqm of the Loggias building at the end of 2016, M.R.M. undertook qualitative and sustainable renovations of the entire site in the first half of 2017, giving a new visual identity to the local shopping centre to enhance consumers’ shopping experience and promote retailers; • The renovation and technical upgrade of the current 4,000 sqm shopping mall adjoining the Carrefour hypermarket in École-Valentin north of Besançon. Now that the administrative permits have been obtained free of any third party claims, extension work to add 2,400 sqm of rental space to the mall can start in the first half of 2018; • The reconfiguration of the Passage de la Réunion shopping mall in the historical centre of Mulhouse with a view to housing a 1,000 sqm fitness studio on the first floor. The works were completed in the fourth quarter of 2017, the lease is in effect and the mall is scheduled to reopen in the first quarter of 2018. During the year, M.R.M. sold a 500 sqm retail unit formerly leased by Gamm Vert for a modest sum and began discussions to sell another two small retail units that are currently vacant.

(1) Leases signed or renewed. (2) Buildings in operation as of 1 January 2018 excluding taxes, rent-free periods and support measures for lessees.

M.R.M. 2017 REGISTRATION DOCUMENT

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