Toulouse le Delphes

toulouse

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Location

  • The property is located just to the north of Toulouse city centre, 5 minutes drive from the main rail station and 20 minutes drive from Toulouse Airport.
  • The greater Toulouse population is estimated at 1,117,000 (2007), which makes Toulouse the fifth largest urban area after Paris, Lyon, Marseille and Lille.

Asset Overview

  • Located in a secondary business district but close (5 minute walk) to Compans Caferelli, the main business district in the centre of Toulouse.
  • The property is part of a co-ownership and comprises of 1,797m2 of office accommodation, 21 basement car park spaces and archives. It was completed in 1989.
  • The building is divisible to allow multi-tenant occupation.
  • 100% let at purchase to a sole tenant the tenant left the building in June 2009 as anticipated.

Key Statistics as at Disposal Date on 18th May 2010

Key statistics as at disposal date on 18th May 2010

Key Management Issues

  • The property had been entirely vacant since June 2009 in a difficult local letting market.
  • The property had been used intensively and had been left in a poor state of repair by the previous tenant.
  • Total estimated capex of about €1m were required to put the property in a marketable state. The works included replacement of the air-conditioning, recladding of the façade and creation of a second staircase to comply with fire regulations.

Progress

  • Intensive negotiations allowed Rynda to agree a dilapidation settlement of €390,000 with the former tenant.
  • Understanding the paucity of development opportunities in central Toulouse, Rynda used their network with local agents to generate multiple offers to buy the building. The cost benefit analysis of the refurbishment showed that a sale to a local developer gave the best risk adjusted return to the Fund and the building was sold on 18th May 2010 to a local private investor.
  • Disposal proceeds including dilapidation payments totalled €2,690,000, a surplus of 14% compared to the purchase price, and 77% in excess of the valuation at 31st March 2010 of €1,521,000.

 

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The ‘Rynda Group’ has offices in London, Paris, Frankfurt and in The Netherlands. The ‘Rynda Group’ undertakes investment management services via Rynda Property Investors LLP. Rynda Property Investors LLP is authorised and regulated by the Financial Services Authority. Property Management within the Rynda Group is undertaken by Rynda Real Estate Asset Management Limited and its subsidiary entities that are appropriately licensed and insured in France, Germany and The Netherlands to undertake transactions and rent collection.