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 (Kiloutou, Maisons du Monde, Casino, Carrefour, Picard Surgelés, La Plateforme du Bâtiment, 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 €243.5m excluding fees at 31 December 2017. The assets, 68.5% of which are located in Paris and the Paris region, comprise over 344 rental units representing a total surface area of 81,974 m².

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 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.

These strategic ambitions focus on several areas:

  • Continue to enhance the company’s existing portfolio through a coherent, multi-annual programme of asset maintenance, renovation and restructuring (notably upon tenant departures)
  • Maintain an effective rental management policy, ensuring that the company benefits from high occupancy and rent collection rates (regular monitoring of tenants’ creditworthiness, anticipation of their needs, upcoming vacancies and required restructuring)
  • Increase the profitability of its assets through dynamic lease management, notably upon relocations, renegotiations (removal of rent caps) or transfers of leases (despecialisation)
  • Arbitrage assets that have reached their revaluation potential or that might no longer meet the investment criteria
  • Actively manage bank debt, with a strategy consisting in putting in place dedicated funding for each new acquisition, over relatively long periods (typically 15 years), in order to optimise the internal rate of return of each investment. In order to optimise its risk exposure and financial structure, the company may, where necessary, enter into hedging, debt restructuring, or asset refinancing transactions.