Cofinimmo - Annual Financial Report 2014

Acquisitions

During 2014, Cofinimmo invested €73.0 million in new acquisitions,

of which €72.4 million in the healthcare real estate segment and

€0,6 million in the MAAF insurance agencies network.

Extensions and redevelopments

Moreover, Cofinimmo invested €25.1 million in extensions and rede-

velopments of healthcare real estate.

Renovations

Cofinimmo also carried out renovations amounting to €40,0 million,

mainly in the office and the Pubstone cafés/restaurants portfolios.

Divestments

Under its strategy of asset rotation, Cofinimmo sold assets, mainly

offices and healthcare assets, for a net total price, after deduction

of transaction costs and fees, of €303.5 million. Each transac-

tion resulted in a gain or was realised at a price in line with the

investment value determined by the expert. Moreover, the overall

weighted average gain on these disposals, excluding the sale of

the shares of the company Galaxy Properties, owner of the North

Galaxy building, which resulted in a realised accounting loss of

€24 million, reached 0.6%.

Asset management for third parties

Since 2013, the Cofinimmo Group started an Asset Management

activity for third parties (see also the chapter “Risk factors” of this

Annual Financial Report).

This activity is exercised on an ancillary basis by Cofinimmo

Investissements et Services (CIS), a subsidiary of the Group, and

is in compliance with the thresholds set in Article 6 of the Law of

12.05.2014 regarding RREC:

•

the subsidiary’s pre-tax result cannot exceed 10% of the public

RREC’s consolidated pre-tax result and the fair value of the

properties and the financial assets and liabilities (i.e. 0% at

31.12.2014);

•

the total assets under management cannot exceed 10% of the

public RREC’s consolidated assets (i.e. 1% at 31.12.2014).

Moreover, its contribution does not exceed the materiality threshold

of 10% of the net revenues and gains of CIS before taxes (i.e. 1% at

31.12.2014).

At 31.12.2014, CIS managed a portfolio of four healthcare assets in

Belgium.

Fire station, Antwerp (BE)

Les Lubérons, Le Puy-Sainte-Réparade (FR)