Annual report 2008 - Altarea Cogedim

In third-party property development, our relative performance is all the more
remarkable given the particularly difficult environment especially in the
residential sector, which saw a 38% slump in sales across the French market
as a whole. In this climate, our subsidiary Cogedim managed to contain the
decline in reservations to 17% whilst maintaining its profitability. Lastly, several
major deals enabled us to double our fee income from our commercial property
services. All in all, the €210 million net-of-tax write-down of Cogedim’s
acquisition value is more a reflection of the poor economic environment, as
Cogedim showed considerable resilience in 2008 on an operating level, thanks
to its teams and strong brand.
At a time when the economic crisis seems to be taking a hold, Altarea has
some significant strengths which should enable us to capitalise on the
opportunities that never fail to materialise in this type of environment. First,
Altarea has a robust financial structure underpinned by a strong cash flow
generating model, which enabled us to raise €375 million in new capital last
July. Second, and most importantly, Altarea is a universal property operator
able to capture all market opportunities thanks to the quality and diversity of its
operating expertise. In 2009, we will keep sight of the values that set Altarea
apart: risk awareness, lucidity, rigour, creativity and drive!
Founder and Manager
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