Primonial REIM continues its strategy on its mixed real estate Portfolio for La Rue de la République in Marseille, for the benefit of the city's vitality and appeal
Primonial REIM is continuing its real estate portfolio strategy for Rue de la République in the 1st and 2nd districts of Marseilles with a clear ambition: to completely reposition this mixed portfolio – comprising residential housing, businesses and offices – by creating a diversified offer in line with the expectations of the city's users and citizens.
Despite the health crisis, the Primonial REIM teams have remained committed to their task, signing 23 new commercial leases in less than one year for a total surface area of more than 3,500 square meters. Other negotiations, now at a very advanced stage, should lead to the signing of further leases and the arrival of new tenants starting in September, in keeping with the strategy that has proved its merit.
In terms of housing, Primonial REIM has developed a high-quality rental offer comprising different type of apartments to meet the needs of tenants (young professionals, families, etc.) seeking a central location in a lively neighbourhood. In 2021, Primonial REIM intends to renovate 35 apartments representing more than 3,000m².
Meanwhile, more than 1,100m² of office space were made available in 2020 and, since the start of 2021, a further 1,500m² for small and medium-sized offices, including the Hiptown co- working start-up, which offers high-quality, eco-responsible services at affordable prices in offices of more than 1,000m² via a 9-year lease, located near to the Old Port. In addition, more than 1,000m² of office space have been renovated and delivered in recent months, with a further 1,050m² in which work is still under way.
Grégory Frapet, CEO of Primonial REIM said: “As a responsible, long-term investor, Primonial REIM has a role to play in helping to restore the Rue de la République to its rightful place within Marseilles by accelerating its development and vitality, and by promoting social ties and greater diversity. The arrival of these new businesses, restaurants and concepts vindicates the merits of our strategy for improving the attractiveness and dynamism of this symbolic street in the heart of Marseilles. These rental successes attest to the quality of our asset management teams, and confirm our strategy for delivering a mixed offer of shops, housing and offices fully in line with local needs and the lifestyles of the people who use the Rue de la République, i.e. those who live, pass through, visit or work in this legendary district.”
It was towards the end of 2017 that Primonial REIM acquired this real estate portfolio, covering 127,000m² and comprising 140 assets made up of housing, shops and offices. From the onset, the company devised and deployed an ambitious roadmap to revitalise the portfolio by creating a diversified offer that would meet the needs of a mixed population of users including families, employees and tourists. In the space of four years, the business plan has been given a complete overhaul with the installation, starting in 2019, of local stores such as food retailers (La Maison de la Viande, a traditional, premium butcher's shop which opened in July 2019, or Ambelle, a florist specialising in dried flowers), restaurants (Bagelstein, featuring New York- style bagels, which opened in July 2019), or urban concept stores (GIFI, which opened in August 2019). Works budgets have also been allocated for a 5-year period to renovate part of the property holding (housing, offices, shops) and underpin its attractiveness.
The 23 commercial leases signed thus far include:
- Restaurant La République located on place Sadi Carnot, covering more than 500m², which will open its doors in September 2021. Largely accessible, this restaurant was devised by Sébastien Richard, holder of a Michelin star and Vice President of the Gourméditerranée association. It will be helmed by Head Chef Guillaume Gomez, a certified Meilleur Ouvrier (Best Worker) of France, and Chef at the Elysée Palace. La République will offer Provencal cooking and seeks to promote the reduction of food waste by working with local producers and partners via short circuits. For each dish sold, it undertakes to offer a dish to persons in need;
- Restaurant Rodizio Brazil, which opened in May 2021 and which offers Brazilian meat specialities on an all-you-can-eat basis in a modern, colourful setting; the street is also home to other restaurants such as Burger de Papa, Barbot or Pizza Five;
- The Beer District bar, which offers a selection of draft and bottled beers to be enjoyed on its terrace close to the Old Port;
- L’Ouvre-Boîte, a concept store and coworking space covering 90m² intended for young entrepreneurs aged 18-30, with little or no formal education, which opened its doors at the end of 2020 via a short-term lease valid up to October 2021. This arrangement was created on the initiative of the Apprentis d’Auteuil foundation which Primonial REIM has supported for many years in the scope of its patronage policy;
- La pâtisserie des Marseillais, which was recently inaugurated; l’Atelier Bartavelle, a Marseilles design studio and clothing label which has already been present for the past 18 months. In addition, La French Pique, a workshop specialised in timeless, well- crafted Marseilles products, and Clay, a ceramics training workshop, will be setting up shop very soon.
Primonial REIM works closely with Marseilles-based firm JLL for the marketing of business assets, and with DBX, C&W and CBRE for the marketing of offices.
About Primonial REIM
Primonial REIM is a portfolio management company that was authorised by the Autorité des Marchés Financiers (AMF) in 2011. Its purpose is to design and manage a range of investment vehicles that reflect its strong convictions about real-estate markets. Its aim is to make SCPI real-estate funds – investing in office, retail, healthcare/education and residential properties – available to the widest possible audience.
As a portfolio management company, Primonial REIM creates and manages real-estate CIUs for institutional and retail investors. On 10 June 2014, Primonial REIM obtained AIFM (Alternative Investment Fund Manager) authorisation from the AMF, under which it is subject to increased obligations in areas such as reporting, liquidity monitoring and risk management. Its Executive Board consists of Grégory Frapet, Chairman, Stéphanie Lacroix, CEO and Tristan Mahaut, Corporate Secretary.
PRIMONIAL REIM press contacts
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