Annual financial report 2013

Fair value of

€533 million

In this segment, Cofinimmo invests in networks of buildings used by

companies as contact points for the direct sale of products or services

to their clients.

Cofinimmo acquires these networks, which consist of a large number of

small buildings, from companies wishing to externalise their distribution

properties and rents them back to those same companies on a medium-

or long-term basis.

The maintenance of the buildings that make up these networks is done

either to a limited extent by Cofinimmo (its subsidiaries Pubstone and

Cofinimur I) or in full by the tenant.

The Group currently has the real estate of two distribution networks in

its portfolio.

PUBSTONE

: CAFÉS AND RESTAURANTS

Under the terms of a real estate partnership, Cofinimmo acquired, at the

end of 2007, an entire portfolio of cafés and restaurants previously owned

by Immobrew SA/NV, a subsidiary of AB InBev and renamed Pubstone SA/NV.

The premises were then leased back to AB InBev under a commercial

lease for an initial average term of 23 years. AB InBev retains an indirect

stake of 10% in the Pubstone structure (see pages 186 and 187). On expiry

of the lease, AB InBev has the option of renewing it under the same condi-

tions or of returning the vacated premises.

Cofinimmo does not assume any risk from the commercial operation

of the cafés and restaurants, since this risk is borne exclusively by AB

InBev, which passes it on partially to the individual operators, who are

subtenants. However, Cofinimmo is responsible for the structural mainte-

nance of the roofs, walls, façades and external woodwork. Under the part-

nership, Cofinimmo also continues to assist AB InBev with the dynamic

development of this portfolio. In Belgium, the in-house Pubstone team, not

including support services, consists of six people involved in the portfo-

lio management (Property and Project Management). In the Netherlands,

the in-house Pubstone team consists of two people, with one person

responsible for technical coordination of the portfolio and the other for

administration.

This in-house management guarantees continual technical and financial

supervision of the various properties, as well as the standardisation of the

various aspects related to property and urban planning. On 31.12.2013, the

Pubstone portfolio consisted of 810 properties in Belgium and 245 prop-

erties in the Netherlands, representing a total above-ground floor area of

363,471m

and a fair value of €422.89 million (Belgium: €272.24 million;

Netherlands: €150.65 million).

Disposals

During 2013, Cofinimmo sold four assets in Belgium (Brussels, Hoegaarden

and Namur) and in the Netherlands (Dordrecht) for a total gross amount of

€1.8 million. This amount is greater than the investment value of the prop-

erties as determined by the independent real estate expert at 31.12.2012.

Since the acquisition of the portfolio of 1,068 cafés/restaurants at the

end of 2007, 21 assets have been sold. The realised gains on these sales

amount on average to 34% of the last investment value as determined by

the independent real estate expert.

Technical interventions and renovations

In 2013, the operational Property and Project Management teams dealt with

398 technical interventions, including 199 renovation projects in Belgium,

148 technical interventions and 83 renovations in the Netherlands. The

works consists mainly of painting and external woodwork repairs, as well

as roof works.

The Project Management team managed and/or supervised the following

main projects in 2013:

Property

Type of works

BELGIUM

Boudewijnstraat 15 - Ghent

Renovation of façades

Oude Markt 29 - Leuven

External woodwork, paintwork

and roof work

NETHERLANDS

Korenmarkt 18-19 - Arnhem

Partial renovation

Stationsstraat 89 - Waalwijk

External paintwork

Markt 66 - Delft

External paintwork

and roof work

The total amount invested in these interventions and projects in 2013

stands at €3.11 million for both countries, of which €2.30 million in Belgium

and €0.81 million in the Netherlands.

New renovation projects as well as minor and major works are planned for

2014, for a budget of €3.35 million.

PROPERTY OF

DISTRIBUTION NETWORKS

In 2007 and 2011, Cofinimmo acquired the real estate of two distribution networks: cafés and restaurants

in Belgium and in the Netherlands (Pubstone) and insurance agencies in France (Cofinimur I).

Pubstone SA/NV was granted the institutional Sicafi/Bevak status on 30.06.2011.

Management Report /

Property of Distribution Networks