ANF’s Lyon estate is mainly located in Rue de la République and consists of high-quality Haussmann-style buildings of about 100,000 m², with shops on the ground floor and offices and residences above them.

ANF’s Lyon estate consisted of the following buildings at 31 December 2007 (not including SGIL):

Occupancy rate close to 100%

Major potential in the commercial property portfolio

ANF wishes to maintain its estate at a high quality level. To achieve this, building lobbies and stairways are regularly upgraded. ANF has also acted in advance of regulatory compliance deadlines for all of its lifts. Finally, façade renovation campaigns continue with the department architect. Ten building façades were renovated in 2007 and eight will be renovated in 2008.

In residential buildings, ANF’s 354 apartments are currently rented or being worked on. There is no apartment inventory on the market.

ANF has continued its programme of residential renovation work on 25 apartments. The 5,400 m² relet in 2007 command an average rent of €11 per m², compared with the average rent of €6 per m² for the stock of apartments on which work has not yet been done.

ANF has given an undertaking to the city of Lyon to build 39 social housing units. Eleven have already been delivered and rented.

The average rent in Lyon is €11 per m², an increase of 2% (source: Jones Lang LaSalle).

There is strong demand for ANF’s 30,700 m² office estate in a much sought-after sector, with the unique setting of Presqu’île having an influence on rent levels. A large number of companies are looking for Haussmann-style products in the heart of the downtown area for reasons of image and the prestigious surroundings.

This strong demand has helped rents for renovated and air-conditioned premises increase in a range of €220-€240 per m² before VAT and bills. Average rents for new lets in 2007 were €215 per m² before VAT and bills.

In market terms, demand placed in the third quarter of 2007 was 56,000 m² (source: Jones Lang LaSalle). This compares with the 25,000 m² marketed in 2007.

Rental values are reaching historically high levels, ranging between €180 and €250 per m² before VAT and bills for renovated and air-conditioned premises. The average rent is about €150 per m².

Rue de la République is the leading commercial location in Lyon and is still buoyed by very strong market demand. The vacancy rate is non-existent and the turnover rate limited (5% annually).

For the 21,000 m² of retail space, ANF has developed a replacement strategy which encourages the introduction of shops generating pedestrian footfall. For example, the first Starbucks outside the Paris area has opened in ANF premises in Lyon, while a new Monop’ is due to set up in the Rue de la République in 2008.

Rue de la République market values are between €850 and €1,200 per m² for zone A. Retail activity is strong with supply remaining at a very low level, while premises of 80 to 150 m² are the most highly-prized (source: Jones Lang LaSalle).

ANF’s position in Rue de la République in Lyon allows the company to take advantage of a particularly positive market. The challenges for 2008 mainly relate to continuing attracting new shops between Cordeliers and Hotel de Ville, with the restructuring of a more than 31,000 m² complex at the heart of the Rue de la République.