Annual report 2008 - Altarea Cogedim

Reservations
In 2008, the Group’s reservations totalled €557 million including
tax compared with €668 million in 2007, a fall of 17%
compared with 38% for the market as a whole (19).
Reservations at 31 December 2008
(€m including tax) Upscale Midscale Total
Paris region 123 79 202 36%
PACA 70 71 141 25%
Rhône-Alpes region 75 56 132 24%
Grand-Ouest region 12 70 82 15%
Total 281 276 557 100%
50% 50%
Reminder at 12/31/2007 51% 49% 668
Of sales of individual new homes alone in 2008, 46% were
in the Paris region and 54% in regional areas.
In 2008, 38 commercial launches took place representing
a total sales value of €569 million including tax. The policy
implemented by the Group allows for control of properties
for sale in an uncertain climate and significantly reduces
the risk of unsold properties on completion.
Because of uncertain market conditions, the Group
abandoned 13 development projects started for which
marketing was uncertain. By way of caution, it also
abandoned or deferred 46 developments in the portfolio
presenting an uncertain rate of return. This deterioration
concerned almost solely the fourth quarter of the year.
Net reservations in €m
(€m including tax) 2008 2007 Difference
Gross reservations 810 796 2%
Pull-outs (client decision) –222 -120 84%
Net reservations excluding
abandoned developments
589 676 –13%
Abandoned developments
(company decision)
–32 -8
Net reservations 557 668 –17%
(number of lots) Upscale Midscale Total o/w Reservations
abandoned
developments
excluding
abandoned
developments
Paris region 248 281 529 -48 577
PACA 214 328 542 -8 550
Rhône-Alpes region 280 318 598 -38 636
Grand-Ouest region 36 490 526 526
Total 778 1,417 2,195 -94 2,289
36% 64%
Reminder at
12/31/2007
2,395 -33 2,428
2008 vs 2007 -9% -6%
The average price of lots sold in 2008 was €254,000
compared with €279,000 in 2007. This should be
considered in the context of:
• a higher proportion of block sales, accounting for
36% of reservations in 2008 compared with 23% in
2007. Block sales represented €202 million in 2008,
including €22 million within the framework of the French
government’s rescue plan;
• the proportion of properties sold in regional areas,
accounting for 64% of reservations in 2008 compared
with 54% in 2007;
• the general fall in real selling prices after negotiation. The
fall was limited in the Paris region and sharper in regional
areas.
Notarised contracts
(€m including tax) Upscale Midscale Total
Paris region 98 116 215 40%
PACA 39 58 97 18%
Rhône-Alpes region 103 50 153 29%
Grand-Ouest region 7 65 72 13%
Total 247 289 536 100%
46% 54%
Reminder at 12/31/2007 54% 46% 771
Notarised sales decreased between 2007 and 2008 as a
result of the decline in net reservations over the course of
the year, as well as the implementation of prudential criteria
with the aim of ensuring high levels of pre-marketing
before buying land, thereby delaying the initial signature of
notarised deeds.
(19) Source: French Ministry of Ecology
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