2013-vinci-annual-report

Located within the Fortdissy.com
cyber-ecodistrict in Issy les
Moulineaux, near Paris, West Park and
East Park are residential developments
offering 126 homes with geothermal
heating, a vacuum waste disposal
system and smart energy management.
In a difficult business environment,
VINCI Immobilier’s overall performance
remained stable in 2013. Although
residential demand remained very flat,
this was offset by activity in the
business and commercial property
market, particularly for hotels.
VINCI Immobilier operated in a market
characterised by uncertain economic and
tax conditions that weighed on investors’
decisions. Furthermore, lower volumes in
the resale market had a knock-on effect on
new-build prices. Despite this unfavourable
set of circumstances, revenue for VINCI
Immobilier was stable (up 0.6% to €816
million), although the order book (signed
notarised deeds) was 17% down on 2012.
Residential property
After their sharp fall in 2012, reservations
were up 22% in 2013, with 2,823 housing
starts, thanks to block purchases by housing
associations and institutional investors (SCPI-
OCPI) and buoyancy in the market for
managed housing for senior citizens and
students. However, revenue generated by
these reservations increased in a smaller
proportion (up 6%) owing to the larger proportion
of managed units and small apartments,
which attract a lower unit sales price. The
number of units started remained stable at
2,769, but there was a big increase in the
number handed over, which was up 9% to
3,411. The largest handover was Fort d’Issy, in
the Paris region (343 homes).
2013 also saw sustained activity in development,
with VINCI Immobilier awarded
several tenders in the Paris region: Meudon
CNRS (230 homes), Paris T7 (97 homes),
Villecresnes (229 homes) and Bagnolet (465
homes), as well as a significant volume of
provisional sales outside Paris, mainly in
Marseille (Euromed), La Seyne sur Mer,
Toulon and Bordeaux.
Business and
commercial property
Although the market for service-sector new
builds remained very flat, VINCI Immobilier
secured a contract with a German investment
fund for the off-plan sale of a 13,500 sq.
metre building in Boulogne Billancourt
(A4-Rives de Seine). 2013 saw work continue
according to schedule on the new SFR head
office in Saint Denis, developed by VINCI
Immobilier and built by VINCI companies.
After a two-year construction phase,
Tranche 1 (75,000 sq. metres) was delivered
in 2013 and work began on Tranche 2 (55,000
sq. metres); for both tranches, VINCI
Immobilier holds a 50% stake in the project
ownership entities, which lease the building
to SFR.
Business activity was sustained in a hotel
market stimulated by renewed interest from
investors and operators. VINCI Immobilier
finalised the sale of a four-star, 125-room
hotel close to Cannes railway station to the
Okko Group and signed a property development
contract with La Foncière des Murs to
build a B&B hotel in Ivry sur Seine. VINCI
Immobilier won two tenders based on land
development costs for hotel projects in Paris
(Porte Dorée, 250 rooms) and at Charles de
Gaulle airport (270 rooms), and it continued
to work on new-build sites in Paris at La
Défense (369 rooms) and Porte des Lilas (265
rooms), as well as Grenoble (138 rooms).
In the commercial sector, 2013 saw the
delivery of 144 rue de Rivoli, Paris, to
Invesco, a total 4,500 sq. metres of retail
(Forever 21) and 2,800 sq. metres of office
space, as well as the delivery of the Carré
Feydeau operation (12,250 sq. metres) in
Nantes. Provisional sales were agreed for
two further off-plan programmes, in Cannes
(2,500 sq. metres) and Nice (29,000 sq.
metres) close to the Allianz Riviera stadium,
which VINCI companies built and are now
managing as concession operator. VINCI
Immobilier was also appointed client-side
programme manager by property company
SFL for the renovation of the Louvre des
Antiquaires in Paris (12,000 sq. metres).
Lastly, in property service activities,
VINCI Immobilier concentrated its residential
market efforts on its institutional and
property management clients in the Paris
region, and its service-sector efforts were
focused on seeking renewals for its current
contracts with businesses and major users
(300,000 sq. metres under management).
Outlook
In the residential sector, the number
of programmes in the process
of receiving planning approvals,
and operations that were being
marketed in 2013, should lead to
a rise in the volume of new-build
starts for 2014. VINCI Immobilier is
currently negotiating closer ties with
Ovelia, a specialist senior citizen serviced
housing operator, which will
consolidate its leading position in
the operation of this type of housing.
In the service sector, 2014 will
benefit from a programme portfolio
that is well balanced between
programmes under construction
and those that are ready for release.
Business activity will remain
sustained, particularly the hotel and
shopping centre markets, where
a number of projects are either in
development or about to start
construction.
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