Virgin on Champs-Élysées … has to go go go …

Do you have €500 million ($657 million / £405 million) burning your pocket? If so, would you like to buy a 27,000 square meters (33,000 sq yards) building right in the middle of Avenue des Champs-Élysées said to be the most beautiful avenue in the world? The building, which dates from the 1930s and which […]

Do you have €500 million ($657 million / £405 million) burning your pocket?

If so, would you like to buy a 27,000 square meters (33,000 sq yards) building right in the middle of Avenue des Champs-Élysées said to be the most beautiful avenue in the world?

The building, which dates from the 1930s and which houses the Virgin megastore and the Monoprix department store, has been put on the market by its owners the Groupama insurance company.

Groupama has been experiencing financial difficulties for some time – it has been saved from bankruptcy by a cash input from the French Caisse des Dépôts group – and has been wanting Virgin and Monoprix to pay it more rent. Before you think that that is no great deal, let me tell you that rents on the avenue come to about €8,000 ($10,500 / £6,500) per sq meter annually. I will let you work out what Virgin’s rent therefore comes to each year. So now Virgin experiencing financial difficulties itself will now have to go. Either go altogether or go elsewhere in Paris, and this is after having opened on the avenue in 1988.

Who will buy the building?

It may be too small for a hotel, but it will be just right for a fashion store.

The avenue has indeed over the past three or four years become a shopping Mecca as movie theatres, bistros, fast foods and souvenir shops closed down because of high rents to make place for luxury stores. Marks & Spencer is the newest arrival following stores like Banana Republic, Abercrombie and Fitch, H&M, Zara, Gap, Cartier, Sephora, Marionnaud, Guerlain, Lancel, Louis Vuitton etc etc

The American ready-to-wear store Forever 21 is being named in today’s Paris daily Le Parisien as a possible buyer.

So too Apple.

This makes me wish to quote presidential candidate the Socialist François Hollande who has said that he does not like the rich. He may be elected President of France tomorrow (May 6, 2012) …

Marilyn Z. Tomlins

One Response

5-6-2012 at 07:24:27

Surprised Groupama are in trouble, the money they made out of me. That was before I found a broker and reduced my premiums by at least half. 😉

If you wish not to miss one of my blogs, do subscribe.

Enter your email address:

Delivered by FeedBurner

HOW TO CONTACT ME

Should you wish to contact me you can do so by email: marilyn@marilynztomlins.com