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 the expertise and capabilities of its manager, SELECTIRENTE Gestion, as well as those of SOFIDY, with which SELECTIRENTE Gestion has set up an agreement for the provision of advice and support in the field of commercial property. SELECTIRENTE will also draw on SOFIDY’s ability to source commercial assets corresponding to its 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, 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 its legacy expertise in traditional street-level 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: