Lyons real estate assets

ANF’s real estate assets in Lyons, located on rue de la République, consist of high-quality Haussmann-style properties of about 88,000 square metres, with retail premises on the ground floor and offices and residential units above them.

At the heart of the old City of Lyons, recognised in 1998 as a UNESCO World Heritage Site, rue de la République is one of the main thoroughfares in the Presqu’île. It runs for a kilometre from Place Bellecour to City Hall, and is one of the longest pedestrian streets in Europe.

It is well served by public transport and houses a number of high-quality chains and shops, making it a particularly popular place during the day and at weekends. This atmosphere is enhanced by the presence of a large number of coffeehouses and restaurants, and also by major cultural venues (such as the Opéra, Musée Saint-Pierre and Théâtre des Célestins). With some 2,000 retail premises, Presqu’île is the retail heart of the Lyons area.

ANF’s goal is to maintain the high quality of its real estate assets. To achieve this, lobbies and stairways are regularly upgraded. ANF has also acted ahead of the regulatory deadlines as regards the upgrading of all its elevators. Finally, façade renovation work continued in coordination with Architecte des Bâtiments de France, with the whole façade at 48-50 rue de la République being renovated in 2009, bringing the total number of properties renovated since 2005 to 25. In the case of residential properties, ANF’s 436 apartments (33,000 square metres) are currently rented or undergoing work. There are no apartments on the market. ANF continued its programme of residential renovation work, involving 44 apartments. The 6,400 square metres re-let in 2009 command an average rent of €12.44 per square metre, in line with the average Lyons market rent of €11 per square metre (source: Jones Lang LaSalle). This price should be set against the average rent of €10.30 per square metre for the apartments with leases expiring by 2013. At December 31, 2009, 8,630 square metres in residential leases were scheduled to expire by 2013, ultimately representing potential additional rental income of €0.1 million. ANF also continued work on 39 social housing units.

There is strong demand for ANF’s 30,000 square metres of office properties in a much sought-after area, with the unique setting of the Presqu’île influencing rent levels. In fact, a large number of companies are looking for Haussmann-style properties in the heart of the city centre area, attracted both by image considerations and the activity of the area. The average surface area of offices marketed by ANF is around 158 square metres, mainly rented to private practitioners. This strong demand has meant that it has been possible to keep market rents between €220-€250 per square metre (before VAT and expenses) for air-conditioned renovated units. Average rents for new lets in 2009 for ANF were €221 per square metre (before VAT and expenses).



As of December 31, 2009, 11,190 square metres in residential leases were scheduled to expire by 2013 and are leased at an average of €135 per square metre (before VAT and expenses), ultimately representing potential additional rental income of €0.7 million. The average market rent is over €200 per square metre (before VAT and expenses). Rue de la République is the leading retail location in Lyons and still enjoys very strong demand. The vacancy rate is non-existent and the turnover rate minimal (5% annually). For its 25,000 square metres of retail premises, ANF has developed a replacement strategy that favours the installation of stores that draw pedestrians. Following a first Starbucks in 2007 and Monop’ in 2008, Esprit and a second Starbucks opened in 2009. Rue de la République, with revenue of over €200 million, is the leading retail thoroughfare in Presqu’île, far ahead of rue Edouard Herriot and rue Victor Hugo (source: JLL and CBRE). As of December 31, 2009, 11,636 square metres in retail leases were scheduled to expire by 2013, ultimately representing potential additional rental income of €3.2 million. As part of its lease renewal policy, ANF has always sought a balanced solution for both parties. Although legal action did have to be taken in one case, ANF’s approach has generally been confirmed. Rue de la République market values are between €700 and €2,300 per square metre in zone A (source: Jones Lang LaSalle).

In 2010, ANF will continue to actively participate in strengthening the attractiveness of rue de la République.