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5 buildings
in operation
PUBLIC-PRIVATE
PARTNERSHIPS
Cofinimmo is continuing its policy of participating in Public-Private Partnerships (PPPs), which enable
certain public services to obtain the necessary funding for the renovation or construction of specific
buildings, with maintenance guarantees.
Striving to meet the specific demands of public authorities, Cofinimmo
provides its real estate and financial expertise for long-term partnerships
that are the subject of public contracts.
Cofinimmo studies the economic and technical life cycle of the projects in
order to find the best compromise between initial investments and future
expenses, whether maintenance costs or replacement and repair costs.
The company bears no construction risk in this type of property invest-
ment, which remains the responsibility of an appointed general contrac-
tor, who receives a flat fee payable upon delivery of the building.
Cofinimmo supervises the quality and execution of the construction works
and is also responsible for the upkeep and maintenance throughout the
tenancy, which is usually under a very long-term lease, at the end of
which the public authority has an option to purchase the property or sees
the ownership transferred free of charge. Cofinimmo therefore does not
have perpetual ownership of these properties.
Cofinimmo’s PPP portfolio comprises a courthouse, a fire station, two
police stations and a student residence that are all currently in use, and a
prison which is under construction.
Housing for students of the Université Libre de Bruxelles
(ULB -
Brussels University)
1
The renovation works of the student housing residence Nelson Mandela,
located avenue des Courses/Wedrennenlaan in Brussels, were completed
on 11.09.2013. As a reminder, in April 2012, Cofinimmo won the tender by
the ULB for a Public-Private Partnership concerning two student housing
buildings, one of which, avenue des Courses/Wedrennenlaan, was in need
of a large-scale renovation
2
.
Cofinimmo invested €14.2 million in the renovation. The building is rented
to the ULB until July 2039, after which its full ownership will revert to the
University. For more information, see the 2012 Annual Financial Report,
page 52.
Prison of Leuze-en-Hainaut
In 2011, the Buildings Agency (Belgian Federal State) awarded the con-
sortium Future Prison (FPR Leuze SA/NV), of which Cofinimmo is a part,
the public tender based on the
Design-Build-Finance-Maintain
(DBFM)
model for the construction and maintenance of a new prison in Leuze-
en-Hainaut. Works began in July 2012, immediately after the permit was
granted, and were continued in 2013. The delivery of the project is sched-
uled for the second quarter of 2014.
The total cost of the project is estimated at €105.6 million (including all
costs, taxes and interests), and is financed by the SPV Future Prison
3
,
through equity and a construction loan. Upon delivery of the works,
Cofinimmo will take over the balance of the shares of the SPV and will
reimburse the construction loan via the sale of 90% of the receivables
corresponding to the investment fees, which cover a period of 25 years.
FPR Leuze has agreed to the construction loan and the future assign-
ment of receivables with KBC Bank. The anticipated internal rate of return
(IRR) is 10%.
For more information, see the 2012 Annual Financial Report, page 53.
1
The Université Libre de Bruxelles (ULB - Brussels University), one of Belgium’s largest universities, has around 25,000 students.
2
See also our press release of 23.04.2012, available on the website
www.cofinimmo.com.
3
Cofinimmo has a 50% stake in the SPV Future Prison, Cordeel Zetel Temse a 49% stake and Willemen a 1% stake.
Management Report /
Public-Private Partnerships
50
/