From its offices located in Paris at 69 Boulevard Haussmann, Grosvenor has been very active in France since 1996. We focus primarily on retail property although we take tactical positions in the office market. With a well-diversified portfolio including high street retail units, shopping galleries and out of town retail warehouses, Grosvenor intends to invest further in this sector.
As forecast, the sub prime effect has acted as a brake on global economic growth in 2007 and the French economy is consequently slowing down. As a result, GDP should increase by between 1.3% and 1.5%. Nevertheless, we believe that our emphasis on retail property, which has attractive risk-return dynamics in France, as well as our short-term tactical capital allocation, position us well in these less benign economic conditions.
Our strategy in the retail sector is to develop long-term investments in cities offering high potential such as Bordeaux, Paris and Toulouse. To supplement our investment programme, we also take positions on retail developments in order to access investment product and enhance returns.
In France we also invest in the office market, focusing on properties with modern flexible space.