Grosvenor Fund Management (GFM), the property fund management business of London-based property company Grosvenor, has sold a portfolio of high street retail properties in France in a deal valued at more than €120 million.
The firm announced today it had sold Grosvenor Retail European Properties (GREP), the company in control of the properties to Syntrus Achmea Real Estate and Finance, the Dutch real estate investment management firm, which was acting on behalf of one of its clients.
The portfolio comprises 16 properties in Paris, Bordeaux and Toulouse. They are let to international retailers including Zara, Etam, Gap, Massimo Dutti and Petit Bateau. Going forward, it will be managed by BNP Paribas Real Estate Investment Management, the real estate investment management business of French bank BNP Paribas.
GREP was launched by Grosvenor in 2004 with a strategy to invest in core-plus assets across continental Europe so the sale of these assets marks something of a completion of that strategy. Indeed, Steve Cowen, managing director for transactions in Europe for GFM said that, in returning more than 15 percent a year to the fund’s investors, the vehicle had performed better than the IPD All Property Index, which the firm tracked, over its lifespan.
He said: “We have been able to exploit numerous opportunities to add value during our period of ownership, including a redevelopment, 6 new lettings and 8 lease renewals.” Despite the exit, Cowen said: “GFM continues to seek opportunities in high street retail in cities across Europe through other vehicles”.
Grosvenor Fund Management manages approximately €3 billion of assets in Europe in total.