Annual report 2008 - Altarea Cogedim

The increase in capitalisation rates affected the majority of
sectors and products, with increases of 100 to 150 basis
points (e.g. Paris CBD up from 4.5% to 6.0% / provinces up
from 6.3% to 7.5%).
Commercial property take-ups
In spite of deterioration in economic conditions, take-up
of office properties held up in 2008 with a volume of 2.4
million m², 14% lower than in 2007. Looking for savings,
users favoured new premises, which accounted for 44% of
take-up volumes.
In parallel, immediately available property increased by
13% to 2.7 million m².
2008 transactions
The Group carried out four major transactions in 2008.
• TOULOUSE – Bordelongue (Porte Sud): A joint development
with Vinci comprising three office blocks of 21,200 m²,
located close to the future Cancéropôle development, was
sold to Crédit Suisse Asset Management for €56 million.
Due for completion in early 2010.
• KORUS, Tranche 2 in Suresnes: (56,000 m²) Development
by Cogedim as delegated project manager on behalf of
AXA REIM and sold off-plan to Servier. Works have just
begun with completion due in mid-2011.
• COLOMBES – Perspectives Défenses (28,000 m²): This
development, under delegated project management on
behalf of AXA REIM was completed in 2007 and let in
full to Areva. It was sold to a German fund managed by
AXA in 2008.
• NICE MERIDIA – First Tranche -(10,200 m²): Joint development
with Icade Tertial, this first tranche of office space of
10,200 m² is subject to a property development contract
on behalf of Cogedim Office Partners for €22.8 million
excluding tax. Works began in the fourth quarter of 2008 for
completion in the first quarter of 2010.
2008 completions
Three developments were completed in 2008:
• Korus Tranche 1 in Suresnes: Developed under delegated
project management, this 43,000 m² property leased by
Philips France was completed in late June on behalf of
AXA REIM France.
• Wissous Logistique: 10,000 m² of logistics space
developed as delegated project manager on behalf of Axa
Reim France.
• French National Assembly: (25,000 m², rue de l’Université,
Paris 7). Extensive redevelopment of the offices of
members of parliament on behalf of the French National
Assembly as delegated project manager. The development
was completed in July 2008.
Revenues and fees
(in €m) 12/31/2008 12/31/2007
like-for-like (1)
Revenues 147.9 70.2
NET PROPERTY INCOME 12.0 +9% 11.0
% of revenues 8.1% 15.7%
SERVICES TO THIRD PARTIES 26.2 +122% 11.8
(1) Including one year’s contribution from Cogedim
Backlog (17) off-plan, property development contracts and
delegated project management)
The backlog of off-plan and property development contracts
represented €141.9 million at the end of 2008 with
€240.3 million at the end of 2007. At the end of December
2008, the Group also had a backlog of delegated project
management fees representing €19.8 million.
3.4.2 Large mixed urban developments
The ALTAREA Group is positioned as an urban multiproduct
actor, able to offer complete solutions including
all property classes, with integrated operating expertise
(offices, housing, hotels, shops). The target in terms of final
investment is still shops, which are developed in order to
be kept in the portfolio, while other property classes are
intended to be sold.
At 31 December 2008, the Group managed six large mixed
urban developments representing a total net floor area of
718,000 m². These developments comprise predominantly
office space but also include 139,000 m² of shops,
intended to be kept in the portfolio for ALTAREA’s share
(GLA of 75,500 m²).
(17) Revenues excluding tax on notarised sales to be recognised according to the percentage of completion method, placements not yet subject to a notarised deed and
fees owed by third parties on contracts signed.
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