Annual Report 2010 - CMVM

Management Report of the Board of Directors 2010"Lagoas Park" undertakingPorto Salvo"Villa Park" undertakingAmadoraIn non-consolidated terms and in order to provide an overall view of the total activity during 2010, we disclose that the operating income ofthe companies of the Group in the Real Estate sector reached the total value of EUR 138,825 thousand, corresponding to an increase of 14%.While in 2009 the market abroad represented 42%, this year it now represents 53%.- PORTUGALIn Portugal, 2010 proved to be a very difficult year for the real estate sector. As a result of the extremely unfavourable economic environmentand an aggravation in the conditions of access to credit, most of the sector experienced difficulties in selling the marketed products. Thiscontext is expected to continue throughout 2011, and marked improvements are not expected in the short term.In 2010, the office segment of Greater Lisbon placed a little over 100,000 m2, the lowest absorption level of the last 8 years.In the residential segment, the economic and financial circumstances of 2010 combined with the saturation of offer in certain locations hashindered actual sales. In this context, families delay purchase decisions and choose to rent; the rental market continues with low rates of returnand is, therefore, unattractive to the promoters of new real estate development projects.Likewise, in the industrial and logistics segment and more particularly in the logistics segment, the demand in 2010 stood at one of its lowestlevels of the last decade, with a very low number of transactions having been recorded, even in the main locations.In view of the current constraints, the maintenance of good sales levels of the assets developed by the Group has been achieved through thezealous work performed by its technical and commercial teams in the definition and implementation of high quality products and in theirpublicising and marketing.40