ANF’s Marseilles estate, which is mostly situated around the Rue de la République, consists of nearly 180,000 m² in mixed-use high-quality Haussmann-style buildings. In addition to this unique asset, the company owns property reserves right at the heart of the Euroméditerranée district.

At the heart of the Euroméditerranée project, the authorities have embarked on a huge revitalisation programme in Rue de la République. The whole of the road has been improved from façade to 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 by the commissioning of the Blancarde - Euroméditerranée Gantes tram line.

This main artery linking Vieux-Port to the new La Joliette district is a central route between Marseilles’s historic centre and the developing business and tourism sector.

ANF’s Marseilles estate consisted of the following buildings at 31 December 2007 :

Since 2005, ANF has improved services to tenants: façade renovation, secure lobbies and upgraded lifts. In addition to the extra comfort this offers to occupants, all of these modernisation measures help to increase the rental quality of the buildings, and therefore to raise the value of the estate.

To return the buildings to their former glory, ANF has decided to invest significant amounts in high-quality façade renovation. 51 buildings (including 15 in 2007) representing 31,000 m² of façades (including 8,850 m² in 2007) have been renewed since 2005.

The level of security offered by ANF meets modern requirements: secure entry, badge opening, lobby alarm systems, and video or interphone.

When it comes to residential buildings (1,366 apartments), 135 units were rented on the open market in 2007, of which 53 had been vacant for more than three years. Two residential programmes at 14 Rue de la Mure and 28 Rue de la République were delivered, helping to expand rental supply.

A significant apartment vacancy rate (25,000 m²) is a potentially strong value creation lever for ANF. Disruption caused by roadworks for more than two years have made it difficult so far to reduce the vacancy rate, though there should be a significant reduction in 2008.

ANF has given an undertaking to the authorities to complete 100 social housing units. This undertaking has been delivered in full within ANF’s estate, thereby encouraging the social mix. Services to tenants in these units are comparable to those for apartments rented on the open market.

For the 24,500 m² of offices, Rue de la République is helped by the highly attractive Euroméditerranée, and strong demand for space up to 1,000 m². The effective vacancy rate (excluding work and turnover) is virtually zero. This strong demand has helped rents reach levels in line with the market average.

The commercial 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 road whose retail face had deteriorated substantially.

The announcement by the authorities that the roadworks would finish by the end of 2007 made it possible to sign leases with leading chains, mainly in personal goods. H&M, Mango, Hylton, Verbaudet, Sephora, Sinéquanone, Celio, Esprit, Puma, Du Pareil Au Même, the jeans shop Vibrato, Planet Jogging and Temps des Cerises have opened or will open in Rue de la République.

The inauguration of the first tranche of Rue de la République in the presence of the Mayor of Marseilles on 8 December 2007 demonstrated the success of the effort put in over the last two years to attract these well-known chains.

Retail in Marseilles

With the commercial success of the first tranche of Rue de la République behind it, ANF is launching further retail projects.

Rising occupancy rates