EURO PROPERTY


high demand. In January, MGPA and CarVal Investors managed to lease half of their 17,000 m2


Viva office scheme to France’s nuclear


power company Sofinel. The asset, due for completion in June, is


located in Malakoff, 1km from Paris’s ring road, and is close to the underground as well as to a railway station. Analysts, though, remain cautious. Morgan


Stanley’s Bart Gysens says: “The outlook for French offices is not positive, but we think central Paris could hold up relatively well. Rental market transactions in the wider Ile-de-France area have weakened in the first half of last year, down by 20% against 2011. But in central Paris excluding La Défense, take-up is down by only 4% compared with five-year averages. We think that trend could persist. “For retail property, we worry about smaller shopping centres, which are often anchored by large food retailers. We think that if the economic climate were to weaken further, shoppers would focus on value retailing, and therefore we think the footfall in some of these smaller malls could suffer,” says Gysens. Nevertheless, based on forecasts by Savills,


investment volume in the French real estate market could reach between €6bn and €8bn in the first half of this year, while average office yields will remain stable at 4.25%.


IN ASSOCIATION WITH


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38