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OFFICES
At 31.12.2013, Cofinimmo’s office portfolio accounted for 46% of its total
invested portfolio. It comprised 85 properties
1
, with a total above-ground
floor area of 763,644m
2
and a fair value of €1,524.81 million. The buildings
are located exclusively in Belgium with a concentration in Brussels.
Despite little respite in the harsh economic climate (gross take-up of
368,743m
2
in 2013
2
), the over-supply of office space of recent years
is beginning to decline. The delivery of speculative new projects fell in
2013, and many offices for which large-scale renovations were needed
are being converted primarily into housing
3
due to the population growth
in Brussels. The vacancy rate for rental properties was therefore slightly
down in 2013 to 11.1%
2
, compared to 11.2% in 2012.
As far as investments are concerned, there has been an increase in activ-
ity in Brussels compared to 2012, with a final figure of around €2.2 billion
2
,
all sectors combined. Domestic and international investors continue to
prefer buildings with a secure rental situation, but a large number of deals
were made with the aim of redeveloping the property into housing.
A dynamic, flexible and creative team,
attentive to its clients’ needs
Our office portfolio benefits from an in-house team of 19 people in charge
of property management, assisted by teams specialising in development
(four people), service management (four people) and project monitoring
(ten people).
Key events
On 19.06.2013, Axa Belgium announced its decision to vacate its head offices
located at 23-25 Boulevard du Souverain/Vorstlaan in 1170 Brussels when
the current lease comes to an end, i.e. on 02.08.2017, in order to occupy an
empty building which it owns. The site, which covers 11hectares, comprises
two buildings with a total above-ground floor area of around 57,000m². The
passing rent from the existing lease accounts for 5.1% of Cofinimmo’s total
gross rental revenues.
Cofinimmo will take advantage of the long notice given by Axa Belgium in
order to reposition the site and showcase its intrinsic qualities to the full.
The Group is namely considering to apply for an authorisation to reconvert
part of the surfaces into residential real estate after 2017. An addendum to
the Axa lease has already been signed, by which Axa gave up part of the
plot of land as from 2014, in exchange for an extension option for the tenant
on the current lease. The Group is considering developing a residential pro-
ject on the vacated plot of land.
DISPOSALS
Cofinimmo sold a semi-industrial building located at 145 Woluwelaan,
Diegem, for a gross price of €3.8 million. This figure is greater than the
investment value of the property as determined by the independent real
estate expert on 31.12.2012.
OFFICE RENOVATION/RECONVERSION PROJECTS
In 2013, the Project Management department managed or was in charge
of several office projects in Brussels. The total value of the office construc-
tion and renovation works managed and accounted for in 2013 stands at
€10.8 million.
Energy performance
Property
Type
of works
Surface
area
(Expected)
End of
works
E-level
after
works
Max.
authorised
E-level
Tervueren/
Tervuren
270-272
Medium-scale
renovation
(phases II, III,
IV and V)
4,060m²
Q3 2013
90
4
N/A
Livingstone II
Office
renovation
17,000m²
Q3 2014
N/A
N/A
Woluwe 34 Reconversion
to apartments,
retail spaces
and/or offices
6,680m²
Q1 2015
70
70
N/A: not applicable
1
Business parks are considered as a single asset but may consist of several buildings.
2
Source: CBRE.
3
Reconversions of offices into housing accounted for 12% to 15% of new residential projects. This figure is set to rise in the coming years (Source: DTZ).
4
Estimated value for the renovated buildings. No official declaration to be made.
Cofinimmo is one of the key players in the office real estate market in Brussels and the surrounding
area. Thanks to the quality and location of its properties and the services it offers to tenants, it
continues to enjoy a high occupancy rate (91.24%) compared to the rest of the Brussels market.
Fair value of
€1,525 million
Management Report /
Offices
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/