Kenmore has been active in the French property market since 2002, recognising the attraction of high yields and low cost of borrowing in a stable and increasingly transparent market. We now manage a French portfolio of over 70 properties with a value of approximately €300 million.
Our Paris office was opened in August 2004 and is headed up by Director, Chris Pope. Kenmore's focus in the first few years of investing in France was on the light industrial sector and the majority of the current portfolio comprises this type of asset but increasingly we are targeting investments in other sectors.
Current Portfolio
The main characteristics of the current French portfolio are as follows:-
- 71 properties, generally multi-let. Six buildings are under construction with completion in 2008-2009.
- Approximately 300,000 sq m
- Over 285 tenants, offering good diversification, the largest tenant representing 4% of the total portfolio
- Rent roll in excess of €16.2 million per annum
- Well located properties in established zones, close to good transport connections
Many of these properties have been purchased in partnership with Bank of Scotland Corporate.
Kenmore French Regional Office Fund
The Kenmore French Regional Office Fund was launched in April 2007 to focus on investing in offices located in regional towns throughout France. The Fund, a joint venture with Lehman Brothers, has a target portfolio size of circa € 100m with anticipated returns of 20% IRR. Kenmore anticipate it to be fully invested within eighteen months of launch, with an expected life span of between three to five years years.
The Fund acquires predominantly new build offices of between 2,500 to 7,500 sq m located in French towns with a minimum population of 100,000 people. The average lot size is between €5-10 million. Towns under consideration include not only the main French cities such as Lyon and Marseille but also smaller towns such as Nantes, Rennes, Montpellier and Strasbourg. The Fund is now approximately 50% invested.