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OTHER GENERAL INFORMATION
Other information concerning the Group’s business and organisation
In the fi nal stage of these restructuring transactions, on May 9,
2005, Eurazeo transferred to its subsidiary Immobilière Bingen
(under Article 210 B a of the French General Tax Code) all ANF
shares received in payment for the division transferred, so that
Eurazeo’s stake in ANF’s capital was entirely owned through its
subsidiary, Immobilière Bingen.
As a result, ANF’s assets now consist of property historically
owned by Rue Impériale and Immobilière Marseillaise (absorbed
by Rue Impériale in 2002), construction of which dates back to the
period 1850-1870.
5.7 Appraisals
Information from third parties, experts’
declarations and declarations of interest
The documents below have been copied with the authorisation
of Jones Lang LaSalle Expertises and BNP Paribas Real Estate
Expertises respectively.
Jones Lang LaSalle Expertises
40 rue la Boétie
75008 PARIS
Tel.: +33 (0)1.40.55.15.15
Fax: +33 (0)1.40.55.17.81
ANF
Xavier de Lacoste Lareymondie
32 rue de Monceau
75008 Paris
Paris, March 1, 2010
Subject: Appraisal of the property value of ANF’s historical assets
at 12/31/2009
Dear Sir,
Pursuant to your request, we are pleased to present you with the
appraisal summary as at 12/31/2009.
This letter summarises the terms of our appraisals and must be read
in conjunction with the following documents: Our methodology as
at 12/31/2009, individual reports for each asset as at 12/31/2009
and service proposal of 07/31/2007.
Background
Jones Lang LaSalle Expertises estimated the fair value of 124 assets
located in Lyons and Marseilles that were part of ANF’s historical
assets (as opposed to B&B Hotels assets) owned by ANF in order
to prepare your fi nancial statements in accordance with IFRS. We
appraised this portfolio for the fi rst time at December 31, 2006.
Since this date, this appraisal has been updated every six months.
This letter concerns the update of December 31, 2009.
ANF • 2009 ANNUAL REPORT
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On October 31, 2007, ANF completed the acquisition of a portfolio
of 159 hotel properties for €471 million including transfer taxes and
expenses. These assets are spread across the whole of France
and are operated by B&B, the third-largest French budget hotel
operator.
€300 million of this transaction out of a total of €335.1 million was
fi nanced from a portion of the proceeds of ANF’s capital increase
on October 25, 2007, with the remainder coming from bank loans.
Our appraisals are based on the fair value of property (occupied
and under the lease terms) in accordance with IFRS (notably
IFRS/IAS 40) in compliance with your status as a listed property
company. Fair value is defi ned by IFRS/IAS 40 as “the amount for
which the property could be exchanged between knowledgeable,
willing parties in an arm’s length transaction.”
Professional bodies agree that fair value is virtually identical to
the market value as defi ned by the “Royal Institution of Chartered
Surveyors” (RICS) and the Property Appraisal charter.
According to the Property Appraisal Charter (third edition published
in June 2006), market value is the “estimated amount for which a
property would be exchanged on the date of valuation between
a willing buyer and a willing seller in an arm’s-length transaction
after proper marketing wherein the parties had each acted
knowledgeably, cautiously, and without pressure”.
Our appraisals are made in accordance with the rules laid down by
the RICS, the Property Appraisal Charter (third edition published in
June 2006) and based on the recommendations from the report
of the work group on the property appraisal of assets of listed
companies, published in February 2000 by the COB (referred to as
the Barthes de Ruyter report) and in line with the “General Appraisal
Principles” (see our half-yearly methodology report).
We confi rm that the properties were appraised on case-by-case
basis rather than as part of a portfolio.
Expertise and independence
Contents
We performed our appraisal as external consultants. Jones Lang
LaSalle Expertises did not note any confl ict of interest in carrying out
this appraisal neither with regard to the parties concerned or to the
property and rights appraised.
We hereby confi rm that the team set up to perform these duties has
the expertise and market knowledge required to estimate the value
of the assets appraised.
OTHER GENERAL INFORMATION PRO FORMA FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS INFORMATION ABOUT ANF DESCRIPTION OF THE BUSINESS