18 / 220
Management Report
/ Strategy
12
/
Cofinimmo works to meet the specific needs of its clients in each of the sectors in which it operates,
while aiming for good control of market and operational risks. In this way it can ensure a quality
investment and an attractive return for its shareholders.
Strategy
In the office segment, the strategy is focused on long-term leases,
high-quality tenants, optimising land value, redeveloping properties
for own account and improving the energy efficiency of the property
portfolio.
In order to meet its client’s needs well, Cofinimmo does the operational
management of its property and tenant portfolios in-house. In addition,
Cofinimmo develops and acquires office buildings which configuration
and facilities have the flexibility, sustainability and connectivity to sat-
isfy the demands coming from the new working methods of the younger
generations.
Cofinimmo systematically renovates out-of-date buildings to ensure that
all its properties remain of excellent architectural and environmental
quality. The amount invested in this activity, designed to maximise the
return on investment, is limited to 10% of the portfolio fair value, so as not
to affect the Group’s risk profile.
Given the market reality and the growing demand for new housing, if a
relatively old building presents a high vacancy rate, Cofinimmo will care-
fully analyse the reconversion into residential units which are then put
up for sale.
The company also operates arbitrages in its portfolio in order to take
advantage of the attractive prices offered by third parties for well-rented
properties. It makes sure however to keep an attractive land value.
In order to optimise its global portfolio, Cofinimmo has set itself the goal
of reducing the share of offices in its overall portfolio over the medium
term, by dilution or asset arbitrage, whilst retaining a critical size in this
sector.
Management
Cofinimmo has been granted the ISO 14001:2004 certification for its global
self-managed office portfolio. This success was made possible thanks to
its in-house management operated by the personnel of Cofinimmo.
Nearly all leases are double net type contracts, wherein building mainte-
nance and repairs are the entire responsibility of the owner. The in-house
letting and Property Management teams, who forge long-lasting relation-
ships with clients and remain in frequent contact with them, aim first and
foremost to provide an all-in-one property solution, combining quality
buildings, flexibility of occupancy and associated services. Their task also
consists of advising tenants on ways to utilise their space, namely from a
energy and environmental perspective.
Clients are offered a wide range of property-related services designed to
help manage the office space and thereby reduce the time that they need
to spend on this aspect. These services include maintenance (cleaning,
technical maintenance, patrols, security guards, etc.), workspace man-
agement (design, fitting out, etc.) and small jobs (plumbing, lighting,
painting, signs, etc.). To do so, Cofinimmo puts the client in contact with a
previously selected subcontractor, or directly coordinates the works.
This one-stop shopping represents an efficiency gain for clients and helps
cement their loyalty. In addition, an in-house Service Desk deals with
complaints from occupants and redirects them to the subcontractors and
the Property Manager responsible for the building. As the single contact
person, the Property Manager is responsible for tendering for the works,
supervising their execution and controlling their quality.
The Project Management team is responsible for managing develop-
ments, large-scale renovations and interior design projects for office
space. This in-house management structure allows Cofinimmo to main-
tain a high-quality property portfolio, used to the best of its potential at
all times, and to redevelop it using techniques that offer the greatest pro-
tection to the urban environment (also see the chapter “Corporate Social
Responsibility” of this Annual Financial Report).
For more information, see the chapter “Offices” of this Annual Financial
Report.
STRATEGY
DIVERSIFIED PORTFOLIO
HIGH AND STABLE RENTAL YIELDS
MODERATE RISK PROFILE
OFFICES
Providing tenants with spaces that meet their needs
Realising a careful arbitrage in the portfolio composition
Considering reconversions into residential
45.6%