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With a portfolio of 654,115m
2
and a fair value of €1,312.0million, Cofinimmo is one of the
key players in office real estate in Brussels. The company has a dynamic and creative
in-house management team of 19 people, with an open ear to its tenants’ needs.
demand allows Cofinimmo to maintain an occupancy rate of
almost 100% in the Leopold district. The market’s vacancy rate
in this district stands around 4.8%
1
, one of the lowest in 11 years.
Furthermore, by launching the works on the Belliard 40 building as
from February 2015, Cofinimmo is anticipating the scarcity of new
developments in the Leopold district leading up to 2017, particularly
for grade A buildings.
Portfolio at 31.12.2014
At 31.12.2014, Cofinimmo’s office portfolio accounted for 41.0% of
its total invested portfolio. It comprised 83 properties
2
, with a total
above-ground floor area of 654,115m
2
and a fair value of €1,312.0 mil-
lion. The buildings are located exclusively in Belgium, with a con-
centration in Brussels. Its occupancy rate in terms of surface area
remains high (90.4%) compared with the Brussels market.
Over the course of 2014, Cofinimmo has pursued its strategy of
active rotation of its office portfolio, encouraged by the volume of
the investment market, up by 80% compared with 2013, and falling
investment yields. The company therefore sold the shares of the
company Galaxy Properties, owner of the North Galaxy building, as
well as the Montoyer 14 building in Brussels.
The rental market faces numerous challenges: contraction in
demand for premises among clients, reduction in the average
surface area occupied per employee, pressure on rents and high
vacancy rates in peripheral and decentralised areas. In this context,
Cofinimmo has continued the active marketing of its office space,
as demonstrated by the great success represented by the letting of
the Livingstone II building to the European Commission for a 15-year
term. The presence of European and international institutions and
lobbies stimulates the office market in Brussels, particularly in the
CBD (Central Business District).
The combination of a high-quality letting activity and a strong
1
Source: CBRE.
2
Business parcs are accounted for as a single asset but may be comprised of
several buildings.
3
The buildings which underwent a large-scale renovation are considered as new.
Geographic breakdown – in fair value (in %)
8.6
%
Other
regions
5.0
%
Antwerp
Central Business
District
8.5%
Decentralised
43.0%
Leopold/Louise
District
24.0%
Periphery &
Satellites
10.9%
Brussels
86.4
%
> 15 years
34.4
%
16.5
%
0-5 years
Average age of buildings
3
(in %)
26.7
%
6-10
years
11-15 years
22.4
%
Breakdown by activity sector of tenants – in con-
tractual rent (in %)
Belgian public sector
12.1%
Information technology
9.7%
Insurance
18.9%
International public sector
11.3%
Other
27.3%
Chemicals, Oil & Pharmaceuticals
5.4%
Retail
2.3%
Sollicitors & Consulting
10.7%
Telecommunications
2.3%
TOTAL
100.0%
MANAGEMENT REPORT / PROPERTY PORTFOLIO /
Offices
46