MARSEILLE

ANF’s real estate assets in Marseilles, which are for the most part located around rue de la République, consist of close to 172,000 square metres of high-quality mixed-use Haussmann- style properties. This unique quality comes on top of the Company’s ownership of land reserves right at the heart of the Euroméditerranée district.

At the heart of the Euroméditerranée project, the whole of rue de la République has been renovated façade by façade, with pavements widened, 200 trees planted and new urban furniture installed.
Rue de la République is close to stations on the two metro lines, and service has been improved since July 2007 with the commissioning of the Blancarde – Euroméditerranée Gantes tram line. An 800-space car park, opened in 2008, allows Marseilles residents to shop without being concerned about parking.
This artery linking the Vieux-Port to the new La Joliette district is a main thoroughfare between the historic centre of Marseilles and the expanding business and tourism district.
In 2009, the properties located on boulevard Baille and avenue du Prado as well as the Massabo land (social housing) were disposed of for a total of €2.8 million.



^* Includes technical vacancy and ongoing work.
^** Surface areas left vacant for development or compensation.



To return the buildings to their former glory, ANF has undertaken high-quality façade renovation. Since 2005, 57 properties with façades of 34,000 square metres have already been restored. The level of security offered by ANF reflects modern-day requirements: secure, card-operated entry systems, double entry security doors in lobbies, and video or interphone. In the case of residential properties (1,366 apartments, 100,000 square metres), 200 units were rented on the open market in 2009 at an average of €12.07per square metre per month. The high vacancy rate in residential properties (23,400 square metres) represents a major value creation store for ANF. Most of this is located in the mid-section of rue de la République (segment 2). As the other owners have started to renovate their properties, it should prove easier to cut the vacancy.
ANF has undertaken the renovation of a block (7,200 square metres) located in section 2 of rue de la République (between place Sadi Carnot and boulevard des Dames). Following work that should last between 6 to 8 months, the Company will have converted big apartments into small apartments targeted in particular at students. The additional rental income (included in potential for rent increases) stemming from the renovation of this block will be around €1.15 million.



As of December 31, 2009, 35,163 square metres in residential leases were scheduled to expire by 2013 and are leased at an average of €7.12 per square metre. These leases ultimately represent potential additional rental income of €1.6 million. ANF has met its commitments to the city; 100 social housing units having thus been completed and fully rented with services comparable to those of housing units rented on the open market. As regards the office space (30,000 square metres), rue de la République benefits from the draw of Euroméditerranée, with continued high demand for spaces between 150 and 1,000 square metres. Accordingly, effective vacancy (excluding work and rotation) is almost nil. The rent levels are wholly in line with the market average.
As of December 31, 2009, 7,862 square metres in office leases were scheduled to expire by 2013 and are leased at an average of €121 per square metre. They ultimately represent potential additional rental income of €0.3 million. The retail redevelopment of rue de la République is at the heart of ANF’s strategy in Marseilles. This is an ambitious urban regeneration and renewal project for a street whose retail fortunes had deteriorated substantially.



The marketing of the Vieux-Port – Sadi Carnot section made it possible to install high-profile French and international chains such as H&M, Desigual, Mango, Hylton, Vertbaudet, Sephora, Sinéquanone, Celio, Esprit, Du Pareil Au Même, Triumph, Planet Jogging, Tally Weijl, Optic 2000 not to mention Temps des Cerises rue de la République. Crocs and H&M Kids opened in 2009. Starbucks plans to open its first coffeehouse in Marseilles in H1 2010. In addition, ANF will push forward with this marketing policy by undertaking restoration work in section 3 of rue de la République (between boulevard des Dames and place de la Joliette) as well as Pavillon-Vacon (located at place du Général de Gaulle).
As of December 31, 2009, 10,883 square metres in retail leases were scheduled to expire by 2013 and are leased at €155 per square metre. At a conservative assumption of €350 per square metre when renewing the leases, these leases ultimately represent €2.1 million in potential additional rental income.