ANNUAL REPORT 2012 BUILDING THE FUTURE, ADDING VALUE. 150 YEARS IMMOBEL REGENCY ∙ Brussels Headquarter of 150years 1863 — 2013 IMMOBEL has been a major play- er in property development in Belgium for 150 years. It is also active in the Grand Duchy of Luxembourg and in Poland. Its business covers the office, residential and landbanking sectors, as well as, when the opportunity arises, retail, en- suring the diversification of its portfolio of projects. Its vision of the market and its expertise enable it to design, develop and manage ambitious real es- tate projects that create long- term value while respecting the environment and integrating the major issues facing society. 02 — Interview with the President and the Managing Director 04 — 150 years in perspective 08 — 2012 in brief 11 — Financial information 14 — Corporate Governance 24 — Property market 34 — Sustainable building 38 — Property development 40 — Belgium 58 — Grand Duchy of Luxembourg 64 — Poland 72 — The real estate portfolio in tables — Directors’ Report 74 eport 2012 — Remuneration Report R 86 nnual A • 93 — Consolidated accounts Condensed Company Accounts IMMOBEL 1 128 — Statutory Auditor’s report 129 — Condensed Company accounts (SA) 132 — General information INTERVIEW INTERVIEW WITH THE PRESIDENT AND THE MANAGING DIRECTOR Our strategy is geographic and sectoral diversity - the best defence against the vagaries of the market. Has the difficult economic In these sluggish economic G.P. – In the centre of Poznan we carried context, which continued conditions, what were the out a thorough renovation on a listed to prevail in 2012, had a strengths of IMMOBEL’s strategy building containing 7,600 m2 of offices noticeable impact on your in 2012? and retail businesses, which was deliv- ered in September 2012. Constructed various markets? G.P. – IMMOBEL pursued the develop- Baron Buysse – The economic situa- ment of its various projects in the 3 sec- in the 1950s, the building is a remark- tion in Europe impacts the whole real tors it knows well. As usual our activities able example of modernist architecture. estate market. Belgium, and espe- comprised concluding leases, obtaining IMMOBEL was rewarded for this restoration cially Brussels, cannot escape that. various permits, the delivery of certain in the category “Best Modernisation of The office market has been stagnat- buildings and the start of new projects. the Year” in Poland. Today, 66 % of the ing for several years and demand in But 2012 was also a year of carefully surface area has already been leased. particular is weaker than it used to targeted acquisitions. Either alone or The IMMOBEL POLAND team, which we set be. On the other hand, in Warsaw, in partnership, IMMOBEL made 3 major up in 2012 to manage our projects, now offices turned out to be particularly acquisitions: Parc Seny in Brussels numbers around 15 people. active, with a record year in terms of (residential), Gateway in Zaventem the number of m2 leased. (offices) and Kons in Luxembourg Can we count other key Gaëtan Piret – In Belgium and the (offices, retail and residential), which events in 2012 and the first Grand Duchy of Luxembourg, moreo- was completed in February 2013. In the few weeks of 2013 as assets eport 2012 landbanking sector, too, IMMOBEL has R ver, we have noticed a slight drop in for IMMOBEL? terms of residential and landbanking actively pursued its policy of diversify- G.P. – In Luxembourg, we have let over nnual sales since the second half of 2012. ing its acquisitions, with purchases in A 75 % of WestSide Village and have • Flanders as well as Wallonia. In Poland, B.B. – The number of transactions advanced negotiations should allow us signed a long-term lease with ING for a is declining despite historically low to strengthen our presence in Warsaw very significant part of the office phase of IMMOBEL interest rates. But we still believe in as of the 1st half of 2013. the Kons project. In Brussels, we deliv- 2 the middle and long-term potential ered the last phase of the Forum project of the residential and landbanking to the Belgian Chamber of Representa- sectors and we will pursue our devel- So Poland is a motor for tives and signed a long-term lease with opment strategy in these markets. development in IMMOBEL’s Deloitte for the entire Gateway pro- Furthermore, in Brussels and Lux- strategy? ject (36,000 m2), of which we acquired embourg, we see a demand for new, B.B. – Yes. We are continuing to 50 %. In terms of residential projects: quality offices in good locations. expand there. We have already reaped Bella Vita (in Waterloo), Lindepark (in the first benefits of our investments. Tervuren), Charmeraie (in Uccle) - where We have successfully sold on several building has already started -, as well as pieces of land acquired as part of a Bredene, Etterbeek and Eupen are, in portfolio. Furthermore, we are examin- our opinion, exemplary in more than one ing several new opportunities. respect. Apart from the desire to It is an excellent defence against the in the acquisition of new projects. strengthen its presence in vagaries of the market. At the end of Chosen with care, these should ena- these historic markets and 2012, Belgium, the Grand Duchy of ble the renewal and growth of cash stay the course in Poland, Luxembourg and Poland made up flows and future profits. Particular what is IMMOBEL’s guiding approximately 72 %, 12 % and 16 % attention has been paid to shorten- principle in its development of our portfolio respectively, in all the ing the development time of these ambitions? different sectors. projects and to managing the risks inherent in them. Finally, sustainable B.B. – As far as acquisitions are At the end of 2012 we had a bal- development criteria and the major concerned we concentrate on first anced portfolio under development, issues facing society are integrated class locations. These locations consisting of 190,000 m2 of residen- into all the projects developed by mean we can make pre-lease or pre- tial projects, 153,000 m2 of offices IMMOBEL, as is proved by the BREEAM sale agreements. That increases the and 416 ha of landbanking projects certificates we have obtained and the security of the projects and automati- (Group’s share). IMMOBEL participates recognition of the quality of the build- cally reduces the development risks. in the development of approximately ings developed by IMMOBEL which is 650,000 m2 offices and residential G.P. – Our focus, both in the residen- accorded to us by the authorities and projects, in Belgium, Luxembourg tial and the office sector is on invest- other stakeholders. In this context: and Poland. ments where we can maximise our the Black Pearl project was elected chances of signing agreements in the by the Brussels Capital Region as short or medium term, at least for a Are you satisfied with “Exemplary Building 2012”, for its significant part of the project, either IMMOBEL’s results for 2012? remarkable performance in terms of for a long-term lease with a first-class both energy and the environment. B.B. – In the present economic situa- tenant, where offices are concerned, tion the results achieved in 2012 can B.B. – Every day our colleagues and or, in the case of residential projects, be considered very reasonable, even partners put a great deal of effort for individual sales right at the start of though they were inferior to those of into ensuring that our projects evolve the construction phase. 2011. The results of a group like IMMO- well. Our heartfelt thanks go out to BEL should be analysed over a long them. We would also like to thank our Is IMMOBEL’s future still period, because the projects have a clients, who support us in our long- geographic diversification? lifetime of between 5 and 10 years. It term goals. And finally, last but cer- is therefore impossible to guarantee tainly not least, we are very grateful G.P. – Absolutely. We are continuing that the results will be the same from to our shareholders and our bankers to pursue the strategy of geographic one year to the next. for all the support and trust they put diversification, sectoral diversification in us. and even in terms of the end investor, G.P. – In the past few years, IMMOBEL that we started nearly 6 years ago. has invested considerable amounts eport 2012 R nnual A • IMMOBEL 3 Baron Buysse CMG CBE, Chairman of the Board of Directors & Gaëtan Piret1, Managing Director 1. sprl HISTORY 150 YEARS in perspective IMMOBEL, founded under the name “Compagnie immobilière de Belgique”, has been listed on the stock market since 1863. BIRTH FOUNDATION Founded on 9 July 1863 by Messrs STONES J.R. Bischoffsheim (its chairman), Henri de Brouckère and Jules Malou, 1867 The Compagnie Immobilière de Bel- with the financial support of the gique, whose first shareholder is the Société Générale, the ambition of the Société Générale, makes its primary Compagnie Immobilière de Belgique objective the development of land in is to tackle the major urban challenges and around Brussels and within the resulting from the industrialisation of fortified area south of Antwerp. the mid-XIXth century. Annual Report 2012 • IMMOBEL 4 1863 1879 AMBITIOUS PROJECTS The Company sets about an ambitious programme of urban deve- lopment in Brussels: the creation of social housing, the construc- tion of a covered market in Saint-Josse and the Palais du Midi, the rehabilitation of a neighbourhood of around 10 ha in the city centre, and the development of the ponds in Ixelles and the Square Jardin du Roi, at the behest of Léopold II. VIEW on the BASILICA Via its subsidiary the Quartier Léopold II, the Com- pagnie Immobilière de Belgique develops over 80 ha of land around the Basilica in Koekelberg.