法国不动产市场报告

FRENCH

2022&2023

INVESTMENT

OFFICES

RETAIL

INVESTMENT

FRANCE

OFFICES

GREATERPARISREGION

RETAIL

FRANCE

01

INVESTMENT

INVESTMENT

COMMERCES

KNIGHTFRANK2022REVIEW&2023OUTLOOK

2022HIGHLIGHTS

•Volumesweredownslightlyby4%year-on-year,butfellsharplyinQ4(-53%year-on-year).

•Thenewfinancialclimatehascausedthemarkettostall:

morethan6billioneurosofassetshavebeenwithdrawn

orputonhold.

•TheregionsfaredbetterthantheGreaterParisRegion(-1%year-on-yearcomparedto-5%).

•Foreignerswerelesspresentforacquisitions(23%dropyear-on-yearininvestmentvolumesinFrance).

•Officesarestillthedominantassetclass,buttheirsharecontinuestofall(54%in2022comparedto62%in2021).

•Industrial:2ndbestyearonrecord.

•Retail:3rdbestyearever.

•Increasingdiversificationstrategies.

•Increaseinprimeyields,butstillsignificantdifferencesofopinionbetweensellersandbuyers.

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Q3

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Newfinancialclimate

2022wastheyearofmonetarypolicytightening,withtheEuropeanCentralBankraisingkey

interestratesby250basispointsinthesecondhalfoftheyeartocurbinflation.Inflationremainshigh,reaching10.4%inDecemberintheEU

comparedto5.3%ayearearlier.The10-yearOATratehasalsosoared,gainingnearly300basis

pointsinoneyear.Thefightagainstinflationwillcontinueoverthenextfewmonthsandfurther

ratehikeswillbeimplemented,althoughthey

maybesmallerthanlastyear.Thelackofvisibilityonpricesandperformanceinthepropertysectorwillthereforecontinueinto2023.

Abundantliquidity:howlongwillitlast?

ChangeinSCPIinflows

InFrance,inmillionsofeuros

Theendoffreemoney

Changeinthe10-yearOATrateandtheECB'skeyrate

Asa%

ECBrate

10-yearOAT

4

3,5

3

2,5

2

1,5

1

0,5

0

-0,5

10000

9000

8000

7000

6000

5000

4000

3000

2000

1000

-1

0

Source:ASPIM

Source:BanquedeFrance/ECB

Changeinlifeinsurancecontributions

InFrance,inbillionsofeuros

160

120

80

40

-

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

134132

Source:FranceAssureurs

5

Europe

-26%

USA

-18%

AsiaPacific

-37%

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Internationalcontext

Afterabuoyant2021,thenewfinancialsituationexplainsthedropinrealestateinvestment

volumesin2022worldwide.Acrossallasset

classes,thedecreasewas25%onaverage

comparedtothepreviousyear.InEurope,the

decreasewassignificantinsomemajormarkets,

suchasGermany,whileFrancefaredwellwitha

generallystablevolumefromoneyeartothenext.

Sharpdecreaseonallcontinents

Changeininvestmentvolumesbetween2021and2022worldwide

Allassettypescombined,excludingresidential(offices,retail,industrial)

World

-25%

Franceheldupwell

ChangeininvestmentvolumesinthemainEuropeanmarkets

Allassettypescombined,includingresidential,inbillioneuros

300

250

200

150

100

50

-

2013201420152016201720182019202020212022

UKGermanyFranceNetherlandsSwedenSpain

Sources:RCA,KnightFrank

Sources:RCA,KnightFrank

€26.3€26.3

KNIGHTFRANK2022REVIEW&2023OUTLOOK

Closetotheaverage

Inthecorporaterealestatemarket(offices,retailandindustrialpremises),thesumsinvestedin

Francetotalled25.4billioneurosin2022,i.e.avolume4%lowerthaninthetwopreviousyears.Althoughactivityremainsfarfromthepeakof

2019,itisclosetotheten-yearaverageand

remainssignificantlyhigherthantheresults

recordedduringthefinancialcrisisandtheeurozonecrisis.

Slight4%decreaseyear-on-year

ChangeinvolumesinvestedinFrance

Allassettypescombined(offices,retail,industrial),inbillionsofeuros

€37.5

2017-2021

€29.7B/year

2012-2021

€25.4

€25.7B/year

200820092010201120122013201420152016201720182019202020212022

Frenchinvestmentvolumes10-yearaverage5-yearaverage

Source:KnightFrank

COMMERCES

INVESTMENT

€5.1

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Sharpdropinthe4thquarter

Almost6billioneurosismissingcomparedtoQ42021,whichisquiteclosetoKnightFrank's

Havingincreasedineachofthefirstthreequarters

of2022,volumesfellsharplyattheendofthe

year,whichisusuallythemostdynamicperiod.

5.1billioneuroswasinvestedinFranceinthe

fourthquarter,adecreaseof54%comparedto

thesameperiodin2021andthelowestlevelforafourthquartersince2013.Althoughactivityhad

beguntolosesteaminthesummer,itwasinthefourthquarterthattheconsequencesoftheriseinthecostofmoneyandtheincreasedwait-and-seeattitudeofinvestorsweretrulyreflectedinthe

figures.

estimateoftheamountofassetswithdrawnfrom

themarketandtransactionsputonhold.The

majorityofthisamountrelatestooffices(84%),

aheadofretailandindustrialpremises.

Lowestlevelsince2013

ChangeinvolumesinvestedinFranceinthefourthquarterofeachyear

€15.4

Allassettypescombined(offices,retail,industrial),inbillionsofeuros

2017-2021

€11.0

€9.2

2012-2021€12.5B/year

€10.3B/year

20092010201120122013201420152016201720182019202020212022

Source:KnightFrankVolumesinvestisenFranceMoyenne10ansMoyenne5ans

Estimatedvolumeofassetsonhold

orwithdrawnfromthemarket

InFrancein2022

€6.4B

Breakdownbyassettype

%oftotalamount

4%

12%

84%

OfficeRetailIndustrial

8

KNIGHTFRANK2022REVIEW&2023OUTLOOK

Theslowdowninactivityisparticularlyevidentinthelargetransactioncategory.Ofthe65transactions>100millioneuroscompletedinFrancein2022,only13wererecordedinQ4foratotalvolumeof2billioneuros.24were

recordedinQ42021foravolumealmostthreetimesas

large.Furthermore,onlythreeofthe18transactions>200millioneurosin2022werecompletedinQ4,includingthe

saleofthe"Bloom"officebuildinginthe12th

arrondissementofParistoPRIMONIAL.Conversely,portfoliosplayedamoresignificantrolein2022,

contributingtotheverystrongperformanceofthelogisticsandretailmarkets.

Proportionsremainstable

BreakdownofinvestmentvolumesinFrancebyamount

Alltypesofassetscombined(offices,retail,industrial)

899

transactions

(956in2021)

18>€200M

(22in2021)

=

€6.1B

(7.1in2021)

=

24%

ofvolume

(27%in2020)

23%

Shareofvolumeinvestedinportfolios

(22%in2021)

INVESTMENT

Evenfewerverylargedeals

100%

80%

60%

40%

20%

0%

31%

19%

25%

24%

31%

21%

21%

27%

20212022

.Morethan€200M€100-200M€50-100M<€50M

Source:KnightFrank

GreaterParis

Region

Regions

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

GreaterParisRegionstrugglingmore

ThetrendtowardstheweakeningoftheGreaterParisRegion'sdominance,whichhasbeenseensincetheoutbreakofthehealthcrisis,isbeing

confirmed.With15.5billioneurosinvestedin

2022,down5%year-on-year,Parisanditsregionaccountedfor61%oftheamountsinvestedin

Franceacrossallassetclasses,comparedwithan

averageof75%inthetenyearspriortotheCovid-19pandemic.Althoughactivityalsoslowedinthefourthquarter,theregionsfaredbetterin2022,

withavolumeofnearly10billioneuros,virtuallyunchangedoveroneyear.

Moresignificantdecreasethanintheregions

ChangeininvestmentvolumesintheGreaterParisRegion,allassettypescombined

Inbillionsofeuros

€30

€25

€20

€15

€10

€5

€0

€28,3

€18,8

€16,4

€15,5

2017–2021

€21.1B/

year

2012–2021

€18.7B/

62%61%

year

200820092010201120122013201420152016201720182019202020212022

GreaterParisRegioninvestmentvolumes—5-yearaverage

10-yearaverageGreaterParisRegionshareinFrenchinvestmentvolumes

80%

70%

60%

50%

40%

30%

20%

10%

0%

Changeininvestmentvolumes2021-2022

Allassettypesincluded

-5%

Year-on-year

-1%

Year-on-year

Source:KnightFrank

Foreigners

French

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Foreignerslessconspicuous

SCPIshavebeenactive.Benefitingfromstronginflows,they

wereresponsibleforsomeverylargetransactions,particularlyintheofficesector,includingacquisitionsbyPERIAL("La

Marseillaise"tower,"WestPark2"inNanterre,"SeineAvenue"inAsnières,etc.)andLaFrançaise("CampusCyber"inLa

Défense,"Alphabet"inBois-Colombes).

Foreignersinvested8.6billioneurosinFrancein2022,a

decreaseof23%year-on-year.Althoughtheywereverypresent

inthefirsthalfoftheyear,theirsharegraduallydecreasedto

35%ofthesumsinvestedinFrance.NorthAmericans,present

inallmarketsectors,werethemostactivewith11%ofFrench

investmentvolumesin2022,aheadoftheBritish(9%).French

investorsaccountedfor65%ofthevolumeinvestedin2022,

comparedwith55%ayearearlier.

Sharpdropininternationalinvestment

ChangeininvestmentvolumesbyforeignersinFrance

Allassettypescombined,inbillionsofeuros

18€16€14€12€10€8€6€4€2€0€

€11.2

35%

45%

€8.6

2010201120122013201420152016201720182019202020212022

50%45%40%35%30%25%20%15%10%5%

0%

Changeininvestmentvolumes

between2021and2022

Allassettypesincluded

-23%

Year-on-year

+20%

Year-on-year

Source:KnightFrank

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Fundscontinuetodominate

Thedecreaseintheamountscommittedin

Theshareofprivateinvestorsalsoincreased.

placedesÉtats-Unis).Finally,theshareof

Francebyforeigninvestorsexplainsthedrop

Gaining5pointsinoneyear,itwasboostedby

insurersandsovereignwealthfundsalsofell

intheshareoffunds.Thelattercontinueto

oneofthelargesttransactionsof2022:the

comparedto2021.

dominate,butthegaphasnarrowedwith

purchasebyBernardArnault,chairmanand

SCPI/OPCIs,whichareresponsiblefora

CEOoftheLVMHgroup,ofaportfolioofthree

significantnumberoftransactionsandare

buildingslocatedintheCBD(60%of22

morepresentinthelargetransactioncategory.

avenueMontaigne,7ruedelaPaixand12

...butthegaphasnarrowedwithSCPI/OPCIs

ShareofeachinvestortypeintotalinvestmentvolumeinFrance

Allassettypescombined,shareasa%oftotalvolume

2021

FundsInsurers

38%16%

Property

companies

10%

Sovereignfunds

Privateinvestors

SCPI/OPCIs

23%

Others

5%

4%

4%

2022

Property

companies

11%

Private

investors

9%

Sovereignfunds2%

SCPI/OPCIs

27%

Assureurs

10%

Fonds

36%

Others

5%

Source:KnightFrank

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Franceremainsaprimetarget

Despitethedecreaseinforeigninvestment,FrancewillretainitsplaceintheTop5mostpopularmarketsin2023,behindtheUnitedStates,theUnitedKingdom,GermanyandAustralia.

InFrance,NorthAmericansshouldremainthemostactiveforeigninvestorsin2023,aheadoftheBritishandGermans.Furthermore,

officesshouldcontinuetoaccountforthe

largestshareofinvestmentvolumesinFrancebyforeigninvestors,eveniftheirsharecouldfurtherdecreaseinfavourofretail,industrialandalternativeassets.

IntheTop5

Top5mostpopularcountriesforforeigninvestors

Cross-borderinvestmentvolumes,allassettypescombined*

TheAmericansandBritisharestillverypresent

Forecastbreakdownofcross-borderinvestmentvolumesinFrancein2023*

BreakdownbynationalityBreakdownbyassettype

0pt

In2022

In2023(forecast)

Changefrom2022estimates

Others

USA47%-10pts

15%Offices

SouthKorea29%

10%

Industrial

Canada

+9pts

Retail

Switzerland16%

11%

22%

+1pt

张GermanyOthers

(residential/hotels)UK

Source:KnightFrank/*includingalternativeandresidentialassets.

-37%

involume

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Offices:themostaffectedassetclass

Officesaccountedfor13.6billioneurosin2022comparedto16.2

billioneurosin2021.Thisistheirworstperformancesince2013.

Whereastheyhaveaccountedforanaverageof67%ofthevolumeinvestedintheFrenchmarketoverthepasttenyears,theirsharefellto54%in2022.Atatimewhenmanyinvestorswithahighexposuretoofficeswanttodiversifytheirassets,andwhentheprice

correctionistakinglongertomaterialiseinthissectorthanintheindustrialandretailsectors,theofficemarketisconsequentlythemostpenalisedbythenewfinancialsituation.

IntheGreaterParisRegion,thewait-and-seeattitudeofinvestorsisallthemoreimportantasremoteworkingcouldhavealasting

impactontheconsumptionofofficespaceandvacancyrateshaverisensharplyincertainofficehubs.Ofthe33officetransactions

>€100million(following38in2021and50in2020),the

overwhelmingmajorityareneverthelessintheGreaterParisRegion(29).Intheregions,therewerefoursuchsales,thelargestbeingthepurchasebyPERIALofthe"LaMarseillaise"tower.

Justoverhalfofinvestmentvolumes

Changeinofficeinvestmentvolumes

InFrance,inbillionsofeuros

30,0€25,0€20,0€15,0€10,0€ 5,0€-€

54%

€13.6

80%

70%

60%

50%

40%

30%

20%

10%

0%

201120122013201420152016201720182019202020212022

GreaterParisRegionRegionsShareofofficesintotalFrenchinvestmentvolume

Source:KnightFrank

Officetransactions≥€100MinFrance

Changeinnumber2020-2022

change

-34%

innumber

50

In2020

38

In2021

33

In2022

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Examplesof2022officetransactions

SFL|91-93BDPASTEUR,PARIS15TH

LAFRANÇAISE|CAMPUSCYBER,

PUTEAUX

AG2RLAMONDIALE|61-63RUE

DESBELLESFEUILLES,PARIS16TH

M&GREALESTATE|RIO,PARIS8TH

PERIAL|LAMARSEILLAISE,MARSEILLE

BLACKROCK|MLYON,LYON

PRIMONIALREIM|BLOOM,PARIS

12TH

LAFRANÇAISE,CDC|ALPHABET,

BOISCOLOMBES

HSBCREIM|AXE13,NANTERRE

ICAMAP|CB3,PUTEAUX

Source:KnightFrank

KNIGHTFRANK2022REVIEW&2023OUTLOOK

ParisCBD

InnerSuburbs

Ofthe10.6billioneurosinvestedintheGreaterParis

Regionofficemarketin2022(-17%year-on-year),itisinthesuburbsthatthedrophasbeenthegreatest.IntheInner

Suburbs,theamountsinvestedlastyeartotalledjustunder1.5billioneuros,avolume39%belowtheten-yearaverage.

IntheNorth,whereseventransactions>100millioneurosdrovethemarketin2021,fourwerefinalisedin2022,

includingthesalebyLAFRANÇAISEof"Kappa"inSaint-

Ouen.Despitetherecentcompletionofanumberoflargetransactions,suchasthesaletoICAMAPof"CB3"inLa

€5.32

€3.48

€3.69

€3.00

€2.43

€1.50

WesternCrescent

INVESTMENT

Almostuniversaldecrease

LaDéfense

€3.56

€1.80

€0.69

Paris

outsideCBD

€5.9

Défense,activityhasalsoslowedintheWest.Lookingatall

transactionsizes,thecumulativevalueoftransactions

9

€4.24

signedin2022intheWesternCrescentandLaDéfensewill

barelyreach2.4billioneuros,comparedtoanaverageof

morethan5billioneurosoverthelasttenyears.

€3.16

€3.50

ThestrengthoftheParisianmarketcontrastswiththe

€2.86

OuterSuburbs

downturnseeninthesuburbs.Investmentvolumesinthe

CentralBusinessDistrictwere8%higherthanin2021,

€1.72

drivenbynear-recordlettingactivity.OutsidetheCBD,

€1.70

ParisoutsidetheCBDoutperforms

Officeinvestmentvolumesbygeographicalarea

IntheGreaterParisRegion,inbillionsofeuros

performancein2022was11%abovetheten-yearaverage

asaresultofseverallargeandverylargetransactionssuch

asthesaleof91-93boulevardPasteurinthe15th

arrondissementtoSFLandthesaleofBloominthe12th

€0.72

€0.63

10-yearinvestmentrecord

2022

10-yearaverage

arrondissementtoPRIMONIAL.Thatsaid,theParismarket

didnotescapetheslowdowninactivityinthesecondhalfof

theyearduetodifferencesofopinionbetweensellersand

buyers,aswasthecaseinothersectors.

Source:KnightFrank

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Strengthoftheregions

Afterasluggishthirdquarter,2022endedonapositivenotefortheregionaloffice

market.Volumesroseagaininthefourthquarterasaresultofthecompletionof

severalsignificanttransactions.Overthewholeof2022,theyamountedtojustover

threebillioneuros(-5%year-on-year).Whileanumberofmedium-sizedcitieshave

becomemoreattractive,volumeshavebeenboostedbythesigningoflarge-scale

transactionsinthelargestcities,suchasPERIAL'spurchaseofthe"LaMarseillaise"

towerinthefirsthalfoftheyear.Inthefourthquarter,theacquisitionbyBLACKROCK

particularlydynamicwith1.1billioneurosinvestedinofficesin2022.Althoughthe

largetransactiontrendcouldfadein2023,theoutlookremainspositiveforthe

regionalofficemarkets:morestable,lessexposedtoremoteworkingandtotheups

anddownsofglobalactivity,theirsupplygenerallyremainslimitedandtheyalso

benefitfromthegeographicaldiversificationstrategiesofFrenchandforeignplayers.

ofthe"MLyon"projectandthesalebyICADEandSOGEPROMof13,200sqmof

officespaceinLaPart-DieuconfirmedthedominanceoftheLyonmarket,whichwas

Lyonrecordsoneofitsthreebestyears

ChangeininvestmentvolumesinofficesintheRhône-Alpesregion

Inbillionsofeuros

1,4

1,2

1,0

0,8

0,6

0,4

0,2

0,0

毛1.10

2010201120122013201420152016201720182019202020212022

10-yearaverage--Rhône-Alpesshareinregionalofficeinvestments

Source:KnightFrank

60%

50%

40%

30%

20%

10%

0%

TOP5intheregions

Officeinvestmentvolumesin2022

Shareasa%oftotalofficeinvestmentsin

theregions

Nantes

4%

LYON

36%

Toulouse

Aix-

Marseille

13%

OTHERS

16%

Lille

13%

8%

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Coreassetsstilldominate

Asin2021,themajorityofinvestmentvolumesintheGreaterParisRegionofficemarkethavebeenforcoreassets,illustratingtheappealofsecure

propertiesinthefaceofthedeterioratingeconomicsituationandsoaringvacancyratesoutsideParis.In2023,investorswillcontinuetofavour

propertiesthatarebestsuitedtooccupierdemandandthatarethemostenvironmentallyefficient.

However,whilethecorrectioninvaluesremainsfairlymodestinthecore

sector,themarketforcore+andvalue-addpropertiescouldbemore

dynamicduetoamorepronouncedadjustmenttomeetbuyers'

expectations.

…butthepricecorrectionmakesCore+andValue-addmoreappealing

BreakdownofofficeinvestmentvolumesbyrisktypeintheGreaterParisRegion

Unittransactions≥€20M

2022

5%

11%

23%

3%

57%

2021

5%

15%

23%

4%

54%

.Core

Source:KnightFrank

Ofwhichpre-let

forward-fundingsales

.CorePlus

Ofwhichpartiallylet

forward-fundingsales

●Value-add/

speculative

.Ofwhichspeculativeforward-funding

sales

18

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Retail:3rdbestyear

5.7billioneuroswasinvestedintheFrenchretailmarketin2022,anincreaseof16%comparedtotheten-yearaverageandthethird

bestperformanceinitshistoryafter2014and2019.Thisresultis

duetoahighnumberoflargetransactions:16>100millioneuroswererecordedinFrancein2022comparedwithonly4in2021.

Despiteaslowdownattheendoftheyear,thefourthquarterwas

nonethelessbuoyedbythesigningofthreenewmajortransactions,allofwhichwereportfoliosales:thesaleofGRANDFRAISshops,

CORAhypermarketsandaportfolioofshoppingcentresandretail

parks.Overtheyearasawhole,portfoliosaccountedfor41%ofthe

volumeinvestedintheFrenchretailmarketandtherefore

contributeddirectlytoitsexceptionalresult.Finally,althoughthelackofvisibilityislikelytoweighonvolumesandthenumberof

transactionsin2023,severalmajortransactionsarestillexpected,particularlyintheoutskirtsandonsomeofParis'mostprestigiousstreets.

Retailisrestoredtoitsformerglory

ChangeinretailinvestmentvolumesinFrance

Inbillionsofeuros,allretailformatsincluded

€9

€8

€7

€6

€5

€4

€3

€2

€1

€0

€4,50

€3,18

€5,75

23%

17%

13%

200820092010201120122013201420152016201720182019202020212022

SumsinvestedinretailinFrance10-yearaverageShareofretailintotalFrenchinvestmentvolume

35%

30%

25%

20%

15%

10%

5%

0%

Shareofvolumesinvestedinportfolios

InFrance,allretailformats,asa%

In2022

41%

In2021

30%

Source:KnightFrank

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Examplesof2022retailtransactions

CHEVALPARIS|150AVENUEDESCHAMPS-ÉLYSÉESPARIS8TH

SOCIETEGENERALEASSUR./BNPPARIBASCARDIF

CARRÉSÉNART,LIEUSAINT

CEETRUS|V2SHOPPINGCENTRE

VILLENEUVED’ASQ

LAFRANÇAISE|FIREPORTFOLIO,FRANCE

ARESMANAGEMENT|FASTPORTFOLIO,FRANCEAMUNDI|SHOPPINGPARCCARRÉSÉNART,LIEUSAINTBARINGS|GALAXYPORTFOLIO,FRANCEBNPPARIBASREIM|MONBEAUBUCHELAY,BUCHELAY

Source:KnightFrank

€1,115

35%

27%

€614

KNIGHTFRANK2022REVIEW&2023OUTLOOK

INVESTMENT

Arecordyearforretailparks

2022wasahistoricyearforretailparks,with1.5billion

eurosinvested,anincreaseof78%comparedtotheten-yearaverage.Asinothermarketcategories,thesaleofretailportfolios(BURGERKING,DECATHLON,etc.)wasakeyfactor,butactivitywasalsosupportedby

numeroussalesofindividualassets,bothsmalland

large-scale,suchastheCarréSénart"ShoppingParc",

soldtoAMUNDIbyURW.Thisexceptionalperformanceisthesignofamaturemarket.Investorsarenowvery

familiarwiththisformat,whichhasprovenitselfinrecentyearsandhaswithstoodtheCovid-19pandemicwell.

In2023,retailparkswillcontinuetobenefitfromtheir"tripleA"positioning:1.attractiveyieldsforinvestorsimpactedbythenewfinancialclimate,2.attractive

occupancycostsforretailersacceleratingthe

streamliningoftheirrealestateinordertoretain

profitability,andfinally3.attractivepricesforconsumerswhosepurchasingpowerhasbeenerodedbyinflation.

Anoutstandingperformance

InvestmentvolumesintheFrenchretailparkmarket

Inmillionsofeuros

€1,533

€1800

€1600

€1€1€1 € €€

€

400

200

000

800

600

400

200

€0

200820092010201120122013201420152016201720182019202020212022

Retailparks—10-yearaverageShareofretailparks

Source:KnightFrank

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Retailinvestmentvolumesbyassettype

InFrance,asa%oftotal

10%

21%

22%

35%

45%

33%

33%

38%

27%

14%

14%

8%

202020212022

.HighstreetsRetailparksShoppingcentresOthers*

*Factoryoutletcentres,hypermarketsandsupermarkets,non-divisible

portfolios

25%

€1

000

€740

20%

€

800

15%

€

600

10%

€

400

5%

€

200

0%

€0

€490

KNIGHTFRANK2022REVIEW&2023OUTLOOK

Food,stillverymuchindemand

Foodandconveniencestoreshavebeenthemost

successfulformatsincetheoutbreakofthehealthcrisisandcontinuetoattractinvestors.In2022,thisassetclassattracted740millioneurosinFrance,avolumethatrosesharplyby51%year-on-yearduetothecompletionof

severalportfoliosales,includingtheCORAandGRANDFRAISportfoliosinthefourthquarter.Ashasbeenthe

casesince2018,themarketwasmainlydrivenbysalesbytheCASINOGroup,andbysalesofthisgroup'sretailpropertiesbyotherowners(hypermarketsand

supermarketssoldbySWISSLIFEAM,etc.).Other

significanttransactionswillfurtherincreasethevolumeofretailinvestmentsin2023.

Significantincreaseininvestments

VolumesinvestedinfoodretailinFrance,inmillionsofeuros

Allretailformatsandbrandscombined

€1

30%

200

201020112012201320142015