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204
OTHER GENERAL INFORMATION
Other information concerning the Group’s business and organisation
Jones Lang LaSalle Expertises
40 rue la Boétie
75008 PARIS
Tel.: +33 (0)01.40.55.15.15
Fax: +33 (0)01.40.55.17.81
ANF
Xavier de Lacoste Lareymondie
32 rue de Monceau
75008 Paris
Paris, February 24, 2010
Subject: Appraisal of the property value 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 initial
methodology report of 12/31/2007, the methodology report as at
12/31/2009, individual asset reports as at 12/31/2009, the service
proposal of 11/08/2007 and its amendment dated 05/05/2009.
Background
Jones Lang LaSalle Expertises estimated the fair value of 83 B&B
hotels 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, 2007 following your acquisition of the latter.
Since this date, this appraisal has been updated every six months.
This letter concerns the update of December 31, 2009.
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), the 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
ANF • 2009 ANNUAL REPORT
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
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.
In order to perform this appraisal, the professionals of Jones Lang
LaSalle Expertises called upon the expertise of Jones Lang LaSalle
Hôtels, specialists in estimating the value of hotel assets. 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.
In accordance with RICS rules, we would like to inform you that
the fees paid to Jones Lang LaSalle Expertises by ANF in 2009
represented approximately 6% of our total revenues for the year.
Appraisal scope
The scope of Jones Lang LaSalle Expertises includes 83 B&B
hotels located throughout France. All of the assets are subject to a
framework lease broken down by asset (fi xed rent, triple net). This
asset portfolio comprises investment properties only. ANF owns
the buildings but not the businesses.
Other B&B hotels held by ANF are appraised by another expert,
BNP Paribas Real Estate. We deny any liability for the appraisals
performed by this consultant.
Due diligence
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Contents
• Visits: all hotels were visited for the fi rst time between
December 2007 and December 2008. Four hotels were subject
to a second visit in June 2009 and six hotels in December 2009.
Second visits in all hotels will be performed by the end of 2011.
We did not conduct any technical visits.
• Information: we used the data provided by ANF concerning
the number of keys, the rental situation (including additional
rent), legal position, work planned, etc. as a basis (see list in
our methodology report of 12/31/2009). We presumed in our
reports and calculations that any information or documents that
could have an impact on the value of properties had been sent
to Jones Lang LaSalle Expertises. We shall not be held liable
if this is not the case or if the information provided contains
inaccurate data.
• We did not have any knowledge of any property deeds or
building permits. Unless otherwise indicated, we presumed that
all the required permits and authorisations had been obtained
for the assets appraised and that they are not subject to any
easements or third-party rights that could negatively impact the
value.
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