PARIS–(BUSINESS WIRE)–Regulatory News:
- Acquisition of the Office Kennedy property
- €47.0 million in IFRS rental income vs. €47.7 million in the same period in 2020 (adjusted for early termination indemnities)
- 100% of rents and charges collected
Strong rental activity despite the crisis
In the first nine months of 2021, Vitura recorded IFRS rental income of €42.7 million, compared with €47.7 million in the prior-year period. Taking into account early termination indemnities, adjusted IFRS rental income remained stable at €47.0 million. This performance was driven by solid asset management work, despite the ongoing impacts of the health crisis in 2021. Thanks to the Company’s efforts, leases were signed or renewed on nearly 14% of the portfolio’s surface area in the year to September.
The portfolio’s occupancy rate stood at 79.9% at September 30, 2021, down from 93.4% one year earlier mainly due to the departure of Hewlett Packard from Arcs de Seine (negative 3% impact), Vinci from the Hanami campus (negative 2.5% impact) and Crédit Foncier de France from Rives de Bercy (negative 8% impact). Crédit Foncier de France will continue to occupy half the surface area of Rives de Bercy until December 31, 2022, having extended its lease for an additional year.
Potential tenants have already expressed an interest in the vacant units, which are either recently renovated or currently undergoing redevelopment, reflecting the properties’ attractiveness. Since September 30, 2021, leases on nearly 5,000 sq.m, representing 3% of the total portfolio, have been or are in the process of being signed for Europlaza and Arcs de Seine.
A sustainable investment strategy
The Company is continuing to reposition its portfolio, driven by excellent feedback from tenants at the Europlaza tower. A major renovation program is underway on the Rives de Bercy property to incorporate new ways of living and working. It will focus on fostering employee well-being, offering premium services and enhancing the garden and roof terraces. Work is also underway on Arcs de Seine’s vast entrance lobby, aimed at providing a sleeker welcome environment and next-level amenities.
Thanks to the close relations that Vitura’s teams have with tenants, and their ability to regularly upgrade the services and collaborative spaces offered across the portfolio, the Company is able to anticipate its occupants’ expectations and provide tailored solutions to their needs.
Acquisition of the Office Kennedy property
At the end of October, Vitura completed the acquisition of Office Kennedy, a building of nearly 10,000 sq.m in the heart of Paris’ 16tharrondissement. The €97 million acquisition was financed by a capital increase in an amount of €31 million and a bank loan in an amount of €66 million. The acquisition increases Vitura’s foothold in Paris and further demonstrates its value creation strategy.
Created in 2006, Vitura (formerly Cegereal) is a listed real estate company that invests in prime office properties in Paris and Greater Paris. The total value of the portfolio was estimated at €1,455 million at June 30, 2021 (excluding transfer duties). Thanks to its strong commitment to sustainable development, Vitura was named a Global Sector Leader in the 2021 Global Real Estate Sustainability Benchmark’s (GRESB) listed office property companies category and received two Gold Awards from the European Public Real Estate Association (EPRA) for the quality and transparency of its financial and non-financial reporting. Vitura is a REIT listed on Euronext Paris since 2006, in compartment B (ISIN: FR0010309096). The Company had a market capitalization of €603 million at November 18, 2021.
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