Annual financial report 2013

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COFINIMUR I: INSURANCE AGENCIES
In December 2011, Cofinimmo SA/NV and Foncière ATLAND, acting in part-
nership and on behalf of the subsidiary Cofinimur I SA/NV, acquired a
283-asset portfolio from the MAAF insurance group, comprising 265 retail
branches, 15 office buildings and three mixed-use buildings (retail/offices).
All these buildings are let for an initial average term of 9.71 years to MAAF, a
subsidiary of the French insurance group Covéa, which has a total network
of 587 branches throughout the French territory. These branches are run
by MAAF employees.
Foncière ATLAND REIM2 is in charge of the asset and property manage-
ment of the entire portfolio on behalf of the acquisition structure held
jointly by Cofinimmo SA/NV and Foncière ATLAND.
In order to finance part of the acquisition of the MAAF branches, Cofinimur
I issued Mandatory Convertible Bonds (MCB) for a total amount of
€52.0 million. The conditions attached to these bonds are described on
page 48 of the 2011 Annual Financial Report.
In 2013, the in-house operational teams took on a number of projects,
including:
• the configuration of the SAP software for the rendering of charges;
• the update of the on-line database for the daily management of the
283 sites (Shareholders’ Meetings, inventories of fixtures at entry,
plans, works, etc.);
• the validation and tracking of requests relating to around forty
“Agence 2010” works files (part of the €80 million works budget
agreed with MAAF at the time of the acquisition);
• the sale of five assets which were unlet at the time of the acquisition
or under a one-year tenancy-at-will lease;
• the complete renovation of the Compiègne branch, with a view to
reletting it to MMA3;
• the operational follow-up via visits of around 175 branches.
1 Residual fixed term of 7.8 years at 31.12.2013.
2 REIM: Real Estate Investment Management.
3 A mutual insurance company, formerly known as “Mutuelles du Mans”, part of the Covéa Group.
4 See also our press release dated 21.12.2011, available on the website
Cofinimur I - France 20.7%
Pubstone - Belgium 52.3% Pubstone - Netherlands 27.0%
Breakdown by rent - by country (in %) Breakdown by urban location - in fair value (in %)
Netherlands (Pubstone) 28.3%
Belgium (Pubstone) 51.1%
Walloon Region 9.9%
Flemish Region 31.1%
Brussels Capital Region 10.1%
SECTOR INFORMATION
Acquisitions
In November 2013, Cofinimmo acquired two insurance agency branches
in France (Oullins and Corbeil-Essonnes) for a total gross amount of
€0.6 million. This amount is in line with the investment value of the assets
as determined by the independent real estate expert. The two branches
are let to MAAF for a fixed nine-year term and offer a gross rental yield of
7.59% for the Oullins agency and 7.88% for the Corbeil-Essonnes agency.
Disposals
During 2013, Cofinimmo also sold five insurance agency branches in
France, located in Avignon, Noisiel, Marseille, Riom and Vernon, for a total
gross amount of €1.5 million. This amount is greater than the investment
value of the properties as determined by an independent real estate
expert at 31.12.2012.
When Cofinimmo acquired the MAAF portfolio, five of the 265 branches
were vacant and five others were under a one-year tenancy-at-will lease4.
At the publication date of this Annual Financial Report, seven of these ten
assets at risk have been sold. The realised gains on these sales amount
on average to 5% of the last investment value as determined by the inde-
pendent real estate expert.
France (Cofinimur I) 20.6%
English Channel coast 2.7%
Mediterranean coast1.1%
Overseas departments (DOM)
and territories (TOM) 0.4%
Major cities 2.7%
Paris Region 4.4%
Provincial towns 4.6%
Rural areas 4.7%
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Property of Distribution Networks \ Management Report