PARIS-French REIT/SIIC Gecina has increased its stake in thecompany owning the proposed Beaugrenelle shopping center projecthere, but said the investment is a one-off move rather than thestart of a shift into retail assets. Gecina bought a further 25% inSCI Beaugrenelle from SCI Pont de Grenelle, taking its stake in thecompany to 75%.

The cost of the operation was $75 million after factoring inpartial repayment of an advance granted by SCI Pont de Grenelle toSCI Beaugrenelle. But the final amount may be higher depending onthe valuation recorded after delivery.

“By taking the lead on this exceptional project, the group isseizing a unique opportunity to develop a shopping centre at theheart of Paris, offering significant value creation potential andprofitability of over 8%. Beaugrenelle does not however representthe starting point for growth in shopping centers. Gecina’sstrategy remains firmly focused on the office, residential andhealthcare business lines,” said CEO Christophe Clamageran.