Bordeaux portfolio: venues for premium shopping. Benjamin Blossier, Director Asset management & Investments 1 October 2013

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1 Bordeaux portfolio: venues for premium shopping Benjamin Blossier, Director Asset management & Investments 1 October

2 Bordeaux in a nutshell: a perfect fit for our high street portfolio Bordeaux: Listed as a UNESCO world heritage site 3rd largest city in France Ranked as one of the most vibrant and attractive European cities. Throughout the year it attracts 2.7 million tourists and is a proven important city for business meetings and events. 6 th biggest city of France, with 850,000 inhabitants Inflow of 10,000 people a year Third best growth outlook in 2012: +0.8% 100,000 students: 16% of the population years old represent 23% of the population Attractive city for business start-ups/ set-ups France s number 2 city for attracting new businesses Employment opportunities Total employment: 160,000 jobs of which nearly 95,000 in the private sector (wine, aeronautics etc.) Employment growth outlook twice as high as the average for France 2

3 Infrastructure developments make Bordeaux even more attractive Paris Bordeaux high-speed train line In just 2 hours from Paris to Bordeaux by million travelers/year in 2011; 20 million travelers/year by 2017 Other infrastructure development 44 km of new tram lines 2 new bridges over the Garonne to connect the urban boulevards A new 43,000-seat stadium, ready for EURO 2016 SOCCER 3

4 Bordeaux a relatively rich region Average income per household 4

5 Golden triangle of Bordeaux: historic inner-city shopping destination 5

6 Developments in the Bordeaux real estate market Bordeaux, the third biggest real estate investment market of France After Paris and Lyon, Bordeaux is the third biggest investment market, with a volume of 242 million in 2012 * Retail shops represented 50% of investments, followed by offices with 42% Dynamic real estate market Balanced new and existing market: 45% new, 55% existing 203 transactions in 2012 Concluding Bordeaux has the ingredients to fit the high street portfolio Vastned strives for * Source: BNP Paribas Real Estate 6

7 Building a cluster of premium venues 7

8 First steps in creating a cluster of premium venues Vastned s first acquisition in Bordeaux (June 2011) 1st portfolio 12 cours Clémenceau 12 cours de l'intendance 20 rue Sainte-Catherine rue Sainte-Catherine rue Sainte-Catherine 47 cours de l'intendance 50 allée de Tourny 8

9 Next phase in creating a cluster of premium venues Second step (January & June 2012) 2 nd portfolio 73 rue de la Porte de Dijeaux 131 rue Sainte Catherine 66 rue Sainte Catherine 61 Cours de l'intendance 9

10 Realising a cluster of premium venues Latest transaction (July 2013) 3 rd portfolio rue Porte Dijeaux 56 Cours de l'intendance 58 Cours de l'intendance 60 Cours de l'intendance 62 Cours de l'intendance Cours de l Intendance 10

11 Vastned acquired a collection of diverse premium venues A cluster of high-end luxury venues (July 2013) 11

12 Vastned s current portfolio in Bordeaux Total surface 10,000 m² Number of retail tenants 19 Retail occupancy rate 100% Total rent / year 4.3 million 12

13 The meaning of active asset management: know the market Monitoring the urban & retail landscape of the inner city and its surroundings Who are the newcomers and which retailers leave? Which real estate projects are developed? What are competitors doing and who are our competitors? What are the general urban developments? Monitoring and acting to developments at tenants Maintain a close relationship with our top tenants through account management, retail fair (Mapic, Siec, ) Build up relationships with potential new tenants Monitoring leases and optimise income streams Tenant security (lease duration, tenant credit) Cash-flow security (triple-net lease contract, bank guarantee, cash deposit) 13

14 Recent developments in the Bordeaux high streets 14

15 Strong international retailers expand to the main shopping streets of Bordeaux In July 2013 a new Mango shop has opened at a prime location at Rue Sainte Catherine In May 2011 the new Apple Store opened at the corner between rue Sainte Catherine and cours de l Intendance, confirming the attractiveness of these two streets. 15

16 Lego chooses Bordeaux for flagship store location The store will open in the new project in the Promenade Sainte-Catherine, an open air inner city mall that will open in Flagship store of 700 m² 3 floors of building sets and developmental toys Third opening in France 16

17 Inner-city development strengthens Bordeaux inner-city as a shopping destination Promenade Sainte Catherine 19,000 m² of retail space in the center of Bordeaux 2 medium-size food anchors of 1,000 m² 32 shops 2 restaurants of more than 500 m² 17

18 Results of Vastned strategy implementation 18

19 Bordeaux a perfect fit for Vastned s premium venues strategy Bordeaux has the ingredients to deliver the premium venues Vastned is looking for Vastned successfully acquired a cluster of diverse high street shops Value creation through higher quality tenant profiles Focus on further opportunities for realizing future value creation 19