A specialised real estate company

Selectirente is a property company specialised in commercial leasehold property, focusing on city centre premises and, to a lesser extent, peripheral areas.

Created in 1997 on the initiative of real estate professionals, Selectirente operates a real estate business consisting in acquiring and managing commercial property assets with a view to leasing them, in France and, marginally, abroad. These rental assets are rented to national retail brands (Saint-Gobain, Maisons du Monde, Carrefour, Picard Surgelés, Lidl, amongst others), proximity services (bank branches, real estate agencies, temporary employment agencies, etc.) and independent traders.

Selectirente has a property portfolio with an appraised value of €336m excluding fees at 30 June 2020. The assets, 69.5% of which are located in Paris and the Paris region, comprise over 429 rental units.

The company seeks to enhance and develop its property assets by leveraging the expertise of Sofidy, to which it has delegated the full management of its portfolio. It also aims to manage and enhance its existing portfolio and to continue expanding in the French and European commercial property market.

Global strategy

The company’s strategic objective is to enhance and develop its portfolio of commercial property in city centres and peripheral areas. This strategy is based on an active policy of maintenance and enhancement of its property portfolio, dynamic lease management, and the ability to identify and carry out coherent investment projects. For this purpose, Selectirente relies on Sofidy’s expertise and capabilities in commercial property and in sourcing commercial assets meeting the investment criteria.

In a fast-changing retail market, the Company has moved its model towards a two-pronged growth strategy. The primary avenue of growth will continue to focus mainly on city-centre retail, Sofidy and Sélectirente’s legacy expertise. This will be supplemented by a second strategy, more opportunistic and value-creating, focusing on the phenomenon of metropolisation.

Primary focus on inner-city retail

The Company confirms a main investment focus based on Sofidy’s legacy expertise in traditional retail. The current portfolio, which is set to grow further, offers the Company’s shareholders recurring and secure returns over the long term and provides a solid basis for diversification. The Company is confident in the robustness of its assets and in the strength of the traditional city-centre retail sector in the major metropolitan areas, which it sees as resilient in a changing market environment.

Europe’s major cities, with their historical, cultural and artistic centres, have a natural attractiveness and still have significant tourism potential, further fuelled by strong structural trends that are favourable to brick-and-mortar retail and offer resistance to dematerialisation: metropolisation, population ageing, the shift from private car use, the revival of the convenience format (food stores, body care, personal services) and the need for new venues for hospitality and conviviality (hotels, bars, cafés, restaurants).

By way of illustration, between 2014 and 2017, Paris, the Company’s main target market, experienced more than 600 bar and restaurant openings, more than 300 openings of specialised food stores and close to 200 boutiques specialising in body care. This trend, which the Company has been analysing for several years, further underpins this strategic development focus (source: APUR 2017 study).

Against this backdrop, the Company will be able to continue focusing on premium addresses, which, in addition to being traditional points of sale, are becoming more of a showcase for brands, providing an exclusive customer experience. The Company will also be able to seize the opportunities that will arise from market developments in keeping with its DNA, by investing in major French and European cities.

A second, more opportunistic growth avenue

The Company intends to develop a second, complementary strategy, more opportunistic and value-creating, focusing on the phenomenon of metropolisation. This second avenue corresponds to a strong conviction based on the increasing densification of large cities and the attractiveness of a number of cities that are central in their region or tourist destinations.

This phenomenon of metropolisation stems from both demographic and economic vitality trends that redefine the quality of the location, a fundamental criterion of Sélectirente’s investment approach.

Compliance with this strict criterion of location brings to the fore several diversification opportunities for the Company:

  • Commercial mix: in addition to traditional street-level stores in city centres, the Company will be able to position itself more on other types of urban retail outlets (shopping malls or shopping centres);
  • Complex situations: the Company will be able to position itself on opportunities offering potential for value creation with assets to be reworked via restructuring, takeovers of business goodwill or co-ownership issues to be resolved;
  • Sectoral mix: in addition to street-level stores, the Company will be able to position itself on entire buildings comprising mixed hotel, office and residential spaces with a view to creating value in the medium term by selling, where applicable, the non-commercial portion of the acquired buildings;
  • The Company will be able to position itself upstream in property development operations, e.g. the development of new districts or the repositioning of railway stations; and
  • The Company will be able to harness the development of small urban logistics, driven by the boom in pick-up and pedestrian drive concepts and the growth in e-commerce, as well as small peri-urban logistics (last mile logistics).