French retail property group Mercialys is joining forces with the Union des Coopérateurs d’Alsace (Coop d'Alsace) to carry out a full renovation of the retail gallery within the Leclerc shopping centre on the Geispolsheim site in Strasbourg. Mercialys said that Coop d'Alsace has transferred ownership of the shopping centre to a 50/50 joint venture of Mercialys and Coop d'Alsace which will start redeveloping the existing retail spaces in March 2010.

'Mercialys and les Coop dAlsace are pleased to make this investment together through a partnership which will create value for both parties on this major site in Strasbourg,' the companies said in a joint statement. Mercialys' asset management team will be responsible for the redevelopment of the centre.

The joint venture has already received the final building permits for the renovation of the scheme, which is expected to open its doors by April 2011. After completion, the centre will feature a 10,000 m2 Leclerc hypermarket as well as a 6,900 m2 retail gallery including 30 shops, two mid-size stores and a self-service restaurant for a total market value of EUR 30 mln. The letting of the new shops started last year with around 65% of the new spaces currently being pre-let.

With a portfolio valued at EUR 2.4 bn, Mercialys is a leading player in the French commercial real estate sector. The company converted to the tax-efficient SIIC status in 2005 and currently owns 167 properties in the country.