Cofinimmo - Annual Financial Report 2014

Cofinimmo contributes to the renovation and improvement of real estate in Belgium via

Public-Private Partnerships (PPP). The PPP portfolio in operation currently comprises a

courthouse, a fire station, two police stations, student housing and a prison.

PPP characteristics

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 is in charge of studying the economic and technical life

cycle of the projects. This analysis identifies the best compromise

between initial investment and future expenses, whether mainte-

nance costs or replacement and repair costs.

Cofinimmo bears no construction risk in this type of property

investment, which remains the responsibility of an appointed

general contractor, who receives a flat fee payable upon delivery of

the building.

Cofinimmo supervises the quality and execution of the construc-

tion works. It is also responsible for the upkeep and maintenance

throughout the tenancy, which is usually under a long-term lease,

at the end of which the public authority either has the option of

purchasing the property or is transferred the ownership free of

charge. Cofinimmo therefore does not have perpetual ownership of

these properties.

Cofinimmo’s PPP portfolio comprises the following assets in

operation:

•

A courthouse;

•

A fire station;

•

Two police stations;

•

Student housing;

•

A prison.

Prison of Leuze-en-Hainaut

In June 2014, the Buildings Agency (Belgian Federal State) notified

the delivery of the Building Availability Certificate for the new prison

of Leuze-en-Hainaut

. This certifies the acceptance of the prison’s

construction works to the satisfaction of the user, the Belgian

Ministry of Justice. The works amounted to €105.6 million, including

fees and taxes.

The delivery of the Building Availability Certificate marks the start

of the occupancy of the prison by the Buildings Agency, under a

25-year lease. The ownership of the building will be automatically

See also our press release dated 24.06.2014, available on

www.cofinimmo.com.

Police station, Dendermonde (BE)

MANAGEMENT REPORT / PROPERTY PORTFOLIO /

Public-Private Partnerships