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2006
ANNUAL REPORT
Head offices 46, avenue Foch 57000 Metz – France Tel.: + 33 (0)3 87 39 55 00 Fax: + 33 (0)3 87 39 55 01 [email protected]
Foncière des Régions Group in Paris 28, rue Dumont-d’Urville 75116 Paris – France Tel.: + 33 (0)1 58 44 59 00 FONCIÈRE DES RÉGIONS – 2006 ANNUAL REPORT ANNUAL FONCIÈRE DES RÉGIONS – 2006 Fax: + 33 (0)1 58 44 59 49 [email protected]
30, avenue Kléber This is a free English translation of Foncière des Régions’ Registration Document 75208 Paris Cedex 16 – France (Document de Référence), which is comprised of two volumes: Tel.: + 33 (0)1 58 97 50 00 Volume 1, 2006 Annual Report Fax: + 33 (0)1 58 97 50 01 Volume 2, Financial Year 2006 [email protected] The Document de Référence was registered with the Autorité des Marchés Financiers (AMF) on 20 April 2007, under number D. 07-0356, in accordance with Article 212-13 of the AMF’s General www.foncieredesregions.fr Regulations. The Document de Référence may be used in support of a financial transaction, www.foncieredesmurs.fr if it is accompanied by a securities note approved by the Autorité des Marchés Financiers. The original www.fdlogements.fr French-language version of the present report forms an integral part of the Document de Référence. WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB_couv.qxd 7/06/07 17:50 Page 2
A long-term property investor and operator, the Foncière des Regions Group brings real estate solutions to all its customers.The Group has a particularly attractive, diversified profile with its real estate activities spanning five product lines, including office property, residential property, service-sector property, logistics platforms, and car parks. Foncière des Régions’ business model is based on developing partnerships, expanding its European presence and maintaining a decentralised organisational structure. Active in several European countries, including France, Germany, Belgium, and Italy*, the Foncière des Régions Group benefits from quality human resources and business references. It is ideally suited to the major trends now under way in the global property market, p. 02 Message from the Chairman of the Supervisory Board i.e. the outsourcing of property portfolios, the growth p. 03 Q&A with the Chairman of the Management Board of urban development projects and demand for the long- p. 06 Corporate governance and management bodies term management of diversified real estate portfolios. p. 10 2006, a year of extraordinary growth In France, the Foncière des Régions Group is active in p. 12 A business model that creates value five property sectors through five entities, four of which P. 14 Solid stock market performance are listed property investment companies under France’s SIIC regime (Société d’investissement immobilier cotée): p. 16 Long-term partnerships p. 18 A business model with a track record in creating value… • Foncière des Régions (SIIC): office property; p. 20 … At the core of a European expansion strategy • Foncière Europe Logistique (SIIC adoption expected p. 22 A responsible company in 2007): logistics and light-industrial premises; p. 23 Manifold property know-how • Foncière Développement Logements (SIIC): residential p. 24 A diversified real estate offering property; p. 26 Foncière des Régions • Foncière des Murs (SIIC): service-sector property; p. 30 Foncière Développement Logements p. 34 Foncière des Murs • Parcs GFR: car parks. p. 38 Foncière Europe Logistique In Germany, Foncière Développement Logements owns p. 42 Parcs GFR nearly 45,000 housing units. p. 44 Asset base of the Foncière des Régions Group Lastly, in Italy, the entry of Beni Stabili, a listed property investment company, into Foncière des Régions’ scope of consolidation marks a new step in the Group's European expansion. The Group's strong growth momentum attests to the success of its original business model.With an asset base valued at €10 billion at the end of 2006, and expected to grow to €14 billion by mid-2007, the Foncière des Régions Group ranks among Europe's leading property Notice: information in this report concerning fiscal 2007 investment companies. is subject to the approval of the contribution of Beni Stabili shares by the Annual General Meeting * Beginning May 2007. of 4 May 2007. WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 1 220 x 297 mm • R° V° • Q • FTe/FHa • SRI
■ Long-term investor ■ Property operator
Foncière des Régions, real estate partner
3 countries €14 bn asset base € m in rents 850 750 employees
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MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD
“The decisions to diversify into various real estate sectors, including offices, logistics, service sector, housing, and car parks, and to enter markets in other European countries, have surpassed my greatest expectations for success.” Charles Ruggieri
In 2006, Foncière des Régions once again achieved This organisational structure is now complete with operating and financial excellence. Building on the the recent creation of Foncière Europe Logistique. profitable growth momentum of the past five years, The Group is well suited to pursuing its development, the Group today ranks among the leading property notably in Germany and Italy where local operating investment companies in France and Europe. The entry into the Italian market, undertaken in 2007, is perfectly structures have been set up. This geographical in sync with that momentum and complements our diversification spreads the investment risk, while presence in France and Germany. allowing us to take advantage of the various potential of each market. It also represents a challenge for us to The relevance of our strategy to be a diversified, build a company that is durable, dynamic and powerful. long-term investor backed by active partnerships can be clearly seen in our progressive and well-managed We believe that in the years ahead, the listed, property- growth. In particular, the decisions to diversify into investment company sector will see the rise of various real estate sectors, including offices, logistics, European players with the ability to operate in various service sector, housing, and car parks, and to enter markets alongside large international investors already markets in other European countries, have surpassed committed to diversification on a global scale. my greatest expectations for success. Each of these With the support of its financial partners, who share activities is taken fully in hand by a subsidiary our view, Foncière des Régions aims to become with its own dedicated team and business plan. one of those leaders.
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Q&A WITH THE CHAIRMAN OF THE MANAGEMENT BOARD
“We want to make Beni Stabili a Foncière des Régions subsidiary, a company that continues to grow fully, with a highly diversified shareholder base.” Christophe Kullmann
What was the impetus behind the purchase-merger The purchase-merger was approved by the shareholders of Bail Investissement by Foncière des Régions? of both companies in October 2006. The transaction In February 2005, we acquired a controlling interest fundamentally changed our stock market status, in Bail Investissement, marking the beginning significantly increasing Foncière des Régions’ market of our investment partnership with GE Real Estate. capitalisation, free float and liquidity. At the end of 2006, our stock was averaging daily trading volumes We shared a view of building a leading property of over €5 million, with a free float of some €2 billion. investment company in Europe’s logistics sector, and it Our weighting grew in French and European stock seemed the best way to achieve that would be to focus indices, particularly the EPRA index. In addition, Bail Investissement’s activity increasingly on logistics in November, Foncière des Régions’ stock was admitted and light industrial premises.With GE Real Estate, to Euronext’s SRD (Deferred Settlement Service). the opportunity arose through Bail Investissement to acquire a portfolio of 206 office buildings valued The Company’s visibility has, of course, improved at nearly €1.6 billion. That portfolio significantly as a result of all of this.We are now better known, enhanced Bail Investissement’s profitability to be sure, followed more closely and better understood. For me, but its logistics assets, which now represented just a that’s a sure sign that a re-rating is in the works. sixth of its total portfolio, had become marginalised. And we haven’t lost sight of our initial aim to build After some consideration, we felt the best way to create a leading property investment company specialised value would be to group all of the French office assets in the logistics sector. into the same entity by merging Foncière des Régions and Bail Investissement.
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Q&A WITH THE CHAIRMAN OF THE MANAGEMENT BOARD (CONTINUED)
We plan to launch Foncière Europe Logistique place with Foncière des Régions, which specialises in mid-2007, giving rise to France’s leading investment in office property and oversees subsidiaries dedicated company in logistics property and the second-largest to clearly identified types of property investment, operator with a logistics portfolio in excess of seems to me to be a most efficient way 1 million sqm. Foncière des Régions will contribute to give rise to responsible and autonomous companies its logistics platforms and light-industrial premises able to take full charge of their development. It creates to Foncière Europe Logistique, while GE Real Estate a considerable amount of leverage for increasing our will add some €100 million in logistics property assets. capacity for action. It is also a more efficient way to I think the outlook for growth is very attractive, participate in complex urban projects, which require given that we already have a new construction pipeline a variety of expertise. These operating teams are of more than 400,000 sqm for an investment of some backed by a shared technical skills base, notably €250 million and profitability that is benefiting from in the financial field.We also use very professional our upstream work on projects. consultants who are themselves very familiar with our organisation and our working methods. You made nearly €5 billion worth of acquisitions in 2006. Do you have the means to sustain such growth? What’s left at the end of the day is the responsibility for managing everyday operations. Our organisational I believe the reason we were successful in acquiring structure is based on setting up local operations to €5 billion in assets in a competitive market is firstly handle asset management and property management because we are recognised for our decisiveness, our missions. By mid-2007, we will have three country ability to finalise transactions in a professional manner and, above all, our capacity to deliver quality service organisations, including one in France, one in Germany to our tenants over the long run. and one in Italy, when Beni Stabili joins the Group this year as our development vehicle in the Italian market. Our strategy of forging investment partnerships, which we have followed for several years now, also played a Why did you decide to invest in Italy and in Beni Stabili? key role. The trusting relations we have with GE Real Diversification, coupled with business and investment Estate and Morgan Stanley, for example, have enabled partnerships, forms the core of Foncière des Régions’ us to carry out large-scale transactions, such as growth strategy. The diversification policy began with the €1.6-billion acquisition of 206 buildings leased investments in the French regions in 2001, and to France Télécom or the €2.1-billion purchase continued with the establishment of dedicated of 40,000 new housing units in Germany. subsidiaries, notably after the adoption in France of Our investment partnerships have also moved us the fiscally transparent SIIC regime for listed property forward because they require that we be demanding investment companies. of ourselves. They have put us in a league with players In 2005, we decided to pursue geographical considered to be the market’s best, not only at the diversification by opening avenues of growth in several national level in France but at a much broader level, European countries, namely Germany and Italy, where players with a tremendous knowledge of real estate structures were to be put into place to replicate the and financial matters. Since we share the same strategy rolled out in France. In 2006, that goal was investment strategy, it’s easier for us to raise capital met to a significant degree in Germany, and it will be from our investment partners. met in Italy in 2007. To complement those funding sources, we also use Like Germany, Italy is a market that is culturally very debt financing while adhering to proven prudential close to the French market. The real estate markets rules. As a result, we’ve been able to improve earnings in those two countries are, however, less mature than per share each year by taking advantage of a very in France.We believe the trend towards transferring buoyant market. the ownership of property portfolios from traditional I should stress that the €5 billion in investments owners, such as families and private funds, particularly is a grand total, one made by several of our companies in Italy, to real estate professionals, including listed combined. The organisational structure we put into companies, will intensify.We believe that outsourcing
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will help to rapidly structure the market, as it did in We are also participating in large urban renewal France. Italy is expected to adopt a fiscally transparent projects, such as the new Amphithéâtre quarter regime on 1 January 2008. in Metz and the Euromed development in Marseille. We view Beni Stabili as the best possible investment in With a multi-product offering and the guarantees of Italy today. Beni Stabili is the country’s leading real an investor who will also own the newly constructed estate investment company with a €4.2-billion buildings, Foncière des Régions is a natural partner portfolio, 93% of which is office property. Three for territorial planning and development authorities. Moving upstream is a key strategic choice for quarters of those properties are located in the large the future. cities of northern Italy, notably in Milan and Rome. Beni Stabili is the only Italian property investment In 2006, Foncière des Régions met its targets again company focused on owing assets over the long term. as a growth stock and a yield stock.What guidance Property acquired via outsourcing transactions account can you give us for 2007? for 80% of the assets in its portfolio. Sixty percent of In 2006, the Group achieved a re-rating in the stock the rents from those assets are secured over the next market. Our stock was admitted to Euronext’s SRD 14 years, and the prime city-centre locations of the while our market capitalisation grew to €4.3 billion offices not included among the outsourcing operations at the beginning of March 2007, with the free float bode well for the durability of rental values. accounting for half of that amount. Now more than The Beni Stabili team is unanimously recognised for its ever, Foncière des Régions is a company on the move. professionalism and its property outsourcing activity. Expansion is now an integral part of our business, as is The similarity in our corporate cultures is clearly property trading. In 2006, we sold nearly €600 million a major advantage. To top it all, we have convergent worth of assets that had reached maturity. Our ideas about market trends in Europe and the need property trading activity is growing at an average rate for competitive property investment companies on of 5% per year. a European scale to accommodate the growth of our In 2006, net cash flow per share rose 15.4%, while largest tenants, most of who already have Europe-wide NAV advanced 33% to €100.7 per share. The ordinary activities.We want to make Beni Stabili a Foncière des dividend to be proposed to the Annual General Régions subsidiary, a company that continues to grow Meeting amounts to €4.7 per share, up 17.5%. At the fully, with a highly diversified shareholder base. same time, our share price grew 56% during the year. Do you have other growth vectors? Furthermore, an extraordinary dividend totalling € We are looking to intervene further upstream in 7.5 per share is expected to be approved by property transactions and actively participate in urban the General Meeting of 4 May 2007, prior to the renewal projects and large-scale developments. realisation of the Beni Stabili transaction, which will mark our entry into Italy. Foncière des Régions has historically grown through the outsourcing of property portfolios. Today, with prices trending higher and yields trending down, opportunities for acquiring large asset portfolios in block sales are growing scarce. We can increase and diversify the possibilities for creating value by positioning ourselves further upstream in the real estate production chain. A few examples include Vélizy-Villacoublay, where we are building 60,000 sqm of office space for Dassault Systèmes, and in the 15th district of Paris, where the remodelling of the former head offices of the CEA, France’s Nuclear Energy Agency, got under way in 2006.
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CORPORATE GOVERNANCE AND MANAGEMENT BODIES at 31 December 2006
■ Members Louis BLANC for Batipart Louis Blanc, 63, joined the Supervisory Board in 2006, bringing his financial know-how and many years of experience within the Group. He served as the Deputy General Manager of Immobilière Batibail before moving CORPORATE GOVERNANCE to the Foncière des Régions Group in 1999. Since 2001, he has represented Batipart, where he served as Deputy General Foncière des Régions’ Corporate Governance Manager from 1999 to 2003, on the Foncière des Régions’ Supervisory Board. is organised around a Supervisory Board, whose Anne-Marie de CHALAMBERT, membership is comprised of representatives representing Generali Vie of the company’s main shareholders, and a Anne-Marie de Chalambert, 63, has represented the Generali Management Board. Vie life insurance company on the Supervisory Board of Foncière des Régions since 2003. She chairs the Generali group’s European Real Estate Board and is the Chairwoman of the Board of Directors for Generali Immobilier Conseil Supervisory Board: and Generali Immobilier Gestion. She is also the Real Estate membership and mission Manager of the Generali France group. Mrs Chalambert’s experience in asset management and investment brings an At 31 December 2006, the Supervisory Board, added advantage to the Supervisory Board when investment chaired by Charles Ruggieri, included 14 members, decisions need to be made. including two independent members and one member with German nationality. Jean-Jacques DUCHAMP, The role of the Supervisory Board is to oversee representing Predica the management of the company, as provided Jean-Jacques Duchamp, 50, has represented Predica on by the Management Board. the Supervisory Board of Foncière des Régions since 2005, ■ providing his expertise in both real estate and finance to the Chairman company. He joined the Crédit Agricole group in 1985, and Charles RUGGIERI was subsequently assigned to the finance branch of Predica’s executive committee, where he has served since 2001. Charles Ruggieri, 59, is the founder of Batipart, a holding company established in 1988. He is also the Founding Bertrand de FEYDEAU Chairman of Foncière des Régions. Mr Ruggieri, who holds Bertrand de Feydeau, 58, joined the Supervisory Board a doctoral degree in law, has served as the Chairman of Foncière des Régions in October of 2006, bringing of Foncière des Régions’ Supervisory Board since 2001. with him his knowledge of Europe’s institutional property ■ market, finance and accounting. He is the General Vice-Chairman Manager of the Diocésaine de Paris Association, Hervé SEMIN and previously served as a Director on the Board of Bail Investissement Foncière. Hervé Semin, 65, joined the Supervisory Board in 2006, after holding general management positions at the Batigère real estate group. His skills in business management and his knowledge of the real estate market are key assets for the Company.
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Jacques HAUSLER Bruno LEGROS, representing GMF Vie Jacques Hausler, 61, became a member of Foncière des Régions’ Supervisory Board in October 2006, adding Bruno Legros, 63, has been a member of Foncière des his expertise in the fields of banking and finance. He is the Régions’ Supervisory Board since 2003. He is a recognised General Manager of Banque Populaire Lorraine Champagne specialist in real estate after serving several mandates and (BPLC), as well as a Director of the Banque Fédérale functions at large property companies. He is currently Head des Banques Populaires and Natexis Private Banking of Investment at Azur GMF, a position he has held since Luxembourg. In addition, he represents BPLC on 1999. Previously, he was Head of Real Estate at Azur GMF a variety of company boards, particularly in the real from 1995 to 1999. estate sector. Olivier PIANI Marc HENRION Olivier Piani, 53, joined the Supervisory Board of Foncière Marc Henrion, 57, joined the Supervisory Board of Foncière des Régions in October 2006. The Chairman of GE Real des Régions in October 2006, contributing his skills and Estate Europe, he is a recognised expert in the real estate knowledge of commercial real estate and property lease markets of France and Europe, and is very familiar financing. He heads Corporate Acquisitions and Participating with the companies active in those markets. Interests at GE Real Estate France. He was named to Foncière des Regions’ Supervisory Board following the François TRAUSCH merger of Foncière des Régions and Bail Investissement François Trausch, 42, joined GE Real Estate in 1996 Foncière. He is the Chairman of ISM and the General and was named Chairman of GE Real Estate France in 2003. Managing Director of PBM SA, a listed SIIC company. He participated in several acquisitions, including the acquisitions of UIS and UIC. Prior to GE, Mr Trausch worked Hans-Joachim KAY, at Goldman Sachs in London and at Tishman Speyer representing Batipart Properties in New York and Berlin. He is a graduate Hans-Joachim Kay, 65, has been a member of Foncière des of the ESCP (École supérieure de commerce de Paris) Régions’ Supervisory Board since 2001. A German national, and has an MBA from Harvard Business School. Mr Kay’s vast knowledge of Germany’s real estate market is a key asset within the Group. He was the General Pierre VAQUIER Manager of a real estate investment company based in Pierre Vaquier, 50, has been a member of Foncière des Stuttgart that specialised in the housing and service sectors. Régions’ Supervisory Board since 2001. He is the Chief Executive Officer of Axa Reim France and the Deputy Pierre LATROBE General Manager of Axa Reim SA. He has extensive Pierre Latrobe, 62, joined the Supervisory Board of Foncière experience in assessing property investment markets. des Régions in 2006, bringing strong practical knowledge of assessing new investments and many years of experience Philippe VIDAL in real estate and finance. He heads CIC’s department Philippe Vidal, 52, has been a member of the Supervisory of Large Accounts, Large Companies and Institutional Board of Foncière des Régions since 2001, bringing his Investors. in-depth knowledge of financing techniques to the Company. He is a member of CIC’s Management Board, is the Chief Executive Officer of CIC Banque CIAL Strasbourg, and he chairs the Board of Directors of the CIC Banque SNVB Nancy.
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CORPORATE GOVERNANCE AND MANAGEMENT BODIES (CONTINUED)
Specialised Committees: Investment Committee membership and roles This nine-member committee examines property transactions in excess of €10 million before they are The Supervisory Committee created presented to the Supervisory Board. three Specialised Committees, Members include Charles Ruggieri (Chairman), naming the committee members and Anne-Marie de Chalambert, Jean-Jacques Duchamp, Marc Henrion, Hans-Joachim Kay, Pierre Latrobe, assigning the roles of each committee, François Trausch, Pierre Vaquier and Philippe Vidal. which act under its authority. Audit Committee This five-member committee examines accounting policies, the methods used to assess the value of the Group’s assets, fiscal trends, the corporate and consolidated financial statements prepared by the Management Board, agreements between affiliated companies, and risk control. Members include Bertrand de Feydeau (Chairman), Louis Blanc, Marc Henrion, Bruno Legros and Hervé Semin. Remuneration Committee This four-member committee sets the remuneration of company officers and representatives and Management Board members. It makes proposals to the Supervisory Board concerning the allocation of stock options. Members include Hervé Semin (Chairman), Olivier Piani, Charles Ruggieri and Pierre Vaquier.
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Management Board: At 31 December 2006, the Management Board, chaired by membership and roles Christophe Kullmann, was comprised of three members, including: ■ Christophe Kullmann, Chairman of the Foncière des Régions Management Board
■ Gilles Bonnier de la Chapelle, Management Board member, Chief Financial Officer
■ Olivier Estève, Management Board member, Head of Property Management The Management Board collectively ensures the Company’s strategic orientation. It is responsible for managing the Company and guides its activities. The Management Board prepares a management report, which it presents to the Supervisory Board.
EXECUTIVE COMMITTEE Back, from left to right are Julien Ruggieri, Olivier Estève, Thierry Beaudemoulin, Christophe Kullmann, and Marc Henrion. Front, from left to right are Yan Perchet and Gilles Bonnier de la Chapelle.
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2006, A YEAR OF EXTRAORDINARY GROWTH
HIGHLIGHTS
January ■ Foncière des Régions Metz Amphithéâtre, Dunkerque, where an transfers its retail property a 25,000 sqm development agreement is signed ■ Foncière des Régions: activity to property investor of service sector properties, between FDR and the Port Bail Investissement acquires Altarea. In exchange, in which Foncière des of Dunkerque to build two the entire share capital of Foncière des Régions Régions is joint investor. logistics platforms spanning Technical, which owns receives an indirect 15% To be delivered in 2010, the a combined 22,000 sqm 206 buildings leased to interest in Altarea, programme represents an and representing a total France Télécom.This portfolio a property investment investment of €40 million. investment of €22 million. of Office Buildings, mainly company specialised in in Paris and the Île-de-France shopping centres in Europe. June July region, is valued at nearly ■ Foncière des Régions grows €1.5 billion, including April ■ Foncière des Murs, its logistics property on 30 June 2006, commits transfer duties, and generates ■ Parcs GFR successfully enters € activity with several major to nearly €700 million 124 million in rental into new metropolitan transactions, including: income. markets with the acquisition in investments, including Saint-Martin-de-Crau, € of BP 3000, which operates 583 million to finalise ■ Foncière Développement where it acquires an 3,043 parking spaces in the acquisition of a second Logements acquires 85,000 sqm logistics park, Bordeaux under a delegated portfolio of 76 hotels 767 housing units from valued at €40.2 million, management contract. operated by the Accor hotel Predica. At the same time, including transfer duties. € In Paris, Parcs GFR acquires group, and 112 million Foncière Développement The logistics premises the full ownership of to acquire 71 restaurant Logements merges with are fully leased to the 1,511 parking spaces, properties following an Sovaklé, a Foncière des Castorama home including the Kléber and agreement signed in July Régions subsidiary and the improvement retail chain; with restaurant chain owner of 2,464 housing Saint-Germain car parks, IPB development project, operator Courtepaille. Both units. from Predica, which as part of the transaction becomes an 18-hectare development transactions entail fixed- February a Parcs GFR shareholder. in the town of Pantin term leases of twelve years. on the immediate outskirts Following those transactions, ■ Parcs GFR acquires May of Paris, is acquired for Foncière des Murs’ market the Trinité car park in the ■ Foncière des Régions €48.1 million; capitalisation grows 9th district of Paris. to nearly €1 billion, while commits to several large Bollène, where an agreement the value of its property urban development is signed between Foncière portfolio increases to more March operations, including: des Régions and ADIM/GTM than €2 billion. ■ Foncière des Murs Marseille Euromed Center, to develop over the long signs a memorandum a 70,000 sqm development term a logistics park September of understanding for offices, retail premises comprised of seven buildings with the Accor group to and hotels to be delivered in with a combined surface ■ Foncière des Murs launches acquire 71 hotels and 2011. Foncière des Régions area of 208,000 sqm. a €301.8-million capital five thalassotherapy invests €180 million in The investment, which increase to finance its institutes totalling 8,300 partnership with Predica, will ultimately total growth from the outsourcing rooms for €583 million, a member of the Crédit €108 million, is being made transactions with Accor including transfer duties. Agricole group; via a partnership; and Courtepaille groups.
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■ Foncière des Régions November begins work on ■ Foncière Développement the “Vélizy Campus” Logements expands in Vélizy-Villacoublay, significantly in Germany where FDR (25%), in with the acquisition of partnership with MSREF the Immeo Wohnen property and operated by the Accor group Accor the by and operated (50%) and FSA Properties management company (25%), are building and a portfolio of nearly
A hotel in Montpellier owned by Foncière des Murs des Murs Foncière by A hotel in Montpellier owned 60,000 sqm of office space, 40,000 housing units in destined to become the the Düsseldorf basin valued future world headquarters at approximately of Dassault Systèmes. €2.1 billion, complementing October the 5,500 housing units transferred to FDL by FDR ■ Foncière des Régions earlier in the year. At the carries out a purchase- same time, FDL acquires merger of Bail from Cardif Assurance Vie Investissement Foncière, a €104-million portfolio thereby strengthening of 11 residential buildings its market capitalisation located in the Paris region. and significantly increasing Following those transactions, its free float. Foncière Développement ■ Foncière des Régions Logements becomes one is added to the Standard of Europe’s leading property & Poor’s S&P 300 index of investments companies View of the future Georges Pompidou modern art centre modern art Pompidou centre Georges of the future View growth stocks with market
to be built in the Amphithéâtre urban development zone in Metz zone urban development Amphithéâtre to be built in the specialised in housing, capitalisations under with a portfolio valued € 5 billion. In addition, in excess of €3 billion Foncière des Régions wins and market capitalisation the 2006 EuroProperty IPD totalling €1.4 billion Investment Award in at 31 December 2006. the real-estate category. ■ Foncière des Régions begins December a programme to remodel ■ Foncière Développement and redevelop the “Carré Logements commits Suffren”, 25,500 sqm of office to enlarging its free float space in the 15th district after increasing its capital in Saint-Martin-de-Crau of Paris, in partnership with by €760 million in cash. At 31 December 2006, Logistics platform leased to Castorama leased to Castorama platform Logistics Predica (40%). FDL’s free float amounts to nearly 9%.
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A BUSINESS MODEL THAT CREATES VALUE
Foncière des Régions is one of Europe’s leading property investment companies. The key to its strong growth over the past several year resides in its strategy of developing complementary real estate investment products in the office, housing, service, logistics, and car park sectors, forging partnerships, and building a regional presence with its integrated teams. Its ability to combine business performance, property growth and financial earnings creates value for Foncière des Régions’ customers, employees and shareholders.
At 31 December 2006, the institutional value of fully consolidated assets totalled Net asset value (NAV) €9.8 billion, excluding transfer duties. Together, those assets represented per share annualised rents of €662 million. In euros 10 0 .7 * After applying the market value of consolidated assets and liabilities, replacement NAV amounted to €2.9 billion, compared with €1.3 billion at the end of 2005. The €1.6-billion increase stemmed notably from the impact of a €728-million capital increase, €206.8 million in cash flow 66.2 (group share), a €603-million gain in asset value, including transfer duties, 51.2 and a €50-million increase in the fair 39.1 value of financial instruments, minus 33.2 a dividend payout totalling €104 million. Block replacement NAV, including transfer duties, advanced 33% to €100.7 per share, versus €75.9 per share at 31 December 2005. * Replacement NAV as of 2006. 2002 2003 2004 2005 2006
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Recurring cash flow from operations
31 December 2006 31 December 2005 Y-to-y growth CASH FLOW (GROUP SHARE) IN € MILLIONS IN € PER SHARE IN € MILLIONS IN € PER SHARE IN % TOTAL 222.6 7.80 114.8 7.00 11.4
Recurring cash flow 206.8 7.24 102.6 6.28 15.4
CAGR* 7.24 Up 34,8% In euros 6.28 4.33 Foncière des Régions 2.19 2.6 recognised for growth and profitability In October 2006, Foncière 2002 2003 2004 2005 2006 des Régions was added In 2006, recurring cash flow from operations (group share) reached €206.8 million, to the Standard & Poor’s or €7.24 per share, up 15.4%. S&P 300 index of growth The performance underscores the success of the secure growth strategy pursued stocks with market for several years now, in keeping with group prudential rules. capitalisations under Net debt (group share) amounted to €3,297 million, compared to held assets valued € at €5,874 million. The interest coverage ratio (group share) was 2.44 times, based on 5 billion. The S&P 300 lists the coverage of €130 million in net financial costs by €317 million in EBITDA. 300 stocks worldwide, * Compound Annual Growth Rate. including four French stocks, of which Foncière des Régions is the only property company. Net profit, group share* 576.2 Additionally, on 25 October In millions of euros 2006, Foncière des Régions was presented with the 2006 Net profit, group share, advanced a strong 62% EuroProperty IPD Investment in 2006, underscoring the value created by the property strategy pursued by the Group Award in the real estate over the past several years. category. The prize honours * IFRS-compliant since 2004. 354.6 the property company with the best performing asset portfolio in France 192.5 over the past three years.
41.2 9.3 2002 2003 2004 2005 2006
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SOLID STOCK MARKET PERFORMANCE
In 2006, Foncière des Régions’ share price appreciated 56%, fuelled by the company’s excellent operating performance and the uptrend among listed property company stocks in a buoyant economic environment.
Following the purchase-merger of Bail Investissement by Foncière des Régions, FDR’s weight has tripled in the EPRA (European Public Real Estate Association) index of property stocks, while the stock’s liquidity has increased substantially with the free float representing 42% of share capital, or €1.6 billion at 31 December 2006.
Shareholder base Provisional shareholder base following the proposed Beni Stabili transaction, at 31 December 2006 subject to the approval At 31 December 2006, Foncière des Régions of the Combined General Meeting had approximately 15,000 individual shareholders. of Shareholders in May 2007 Free float: 42% Free float: 34% Institutional Institutional investors: 26% investors: 19% Batipart: 20% Batipart: 16% GE Real Estate: 12% GE Real Estate: 10% Delfin: 21%
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Several publications and tools are available to keep shareholders informed about the Company and its stock, including the Shareholders’ Newsletter, published twice a year, the www.foncieredesregions.fr website, financial news and opinion in the press, and the annual report. The Foncière des Régions share
Company is listed on Euronext Paris’ Eurolist compartment A 2007 schedule of events Market: Compartment A Annual General Meeting of 4 May 2007. Listed on Euronext Paris (France) Publication of the half-year earnings report on 27 July 2007. Ticker: Foncière des Régions ISIN code: FR0000064578 Market capitalisation at 5 March 2007: €4.3 billion Share price and market The Foncière des Régions share is eligible for capitalisation trends Euronext’s SRD (Deferred Settlement Service). In euros 2002 2003 2004 2005 2006 High 22.46 37.8 64.75 99.50 148 Low 19.92 25.52 36.10 57.72 88.62 Ordinary dividend 4.7* Price at 31/12 21.59 36.02 60.43 90.00 148.00 growth 2002-2006 Market capitalisation In euros at 31/12 0.33 3.51 0.86 1.56 4.2 4.0 (in € billions) 2.64 2.0 Foncière des Régions’ 1.22 stock market performance in 2006 2002 2003 2004 2005 2006 154 * Proposed to the Annual General Meeting of 4 May 2007. An extraordinary 146 € dividend of 7.5 per share is also being proposed, subject to the approval 138 of the Beni Stabili share contribution. 130 122 114 € m % 106 13 4 65 98 Proposed dividend Payout rate of recurring 90 82 cash flow from operations 74 66 % 58 3.2 06 /06 /06 01/06 04/06 06 10/06 11/ 9/12/06 Net dividend yield 31/ 28/02/06 31/03/06 28/ 31/05/06 30/ 31/07/06 31/08/06 29/09 31/ 30/ 2 FDR share price: +56.12% IEIF SIIC France index: +52.64% SBF 250: +13.40%
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LONG-TERM PARTNERSHIPS
Foncière des Régions is building its growth with the participation of the institutional investors accompanying its strategy and in partnership with large companies seeking to outsource their property portfolios.
Since 2001, the Foncière des Régions Group has based its growth on financial, property and business partnerships with industrial and service-sector companies seeking to outsource their property portfolios, e.g. France Télécom, Accor, EDF, Korian, CEA and IBM, as well as with financial institutions that have invested in the Group, i.e. Batipart, Morgan Stanley Real Estate, GE Real Estate France, Predica, and other French institutional investors. Benchmark partnerships with market leaders Foncière des Régions maintains long-term working relations with all its business partners, in a shared spirit of creating value and generating growth momentum.
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Lasting ties with exemplary partners Our business partners rank among the leaders in their respective sectors of activity.
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A BUSINESS MODEL WITH A TRACK RECORD IN CREATING VALUE…
Foncière des Régions elected to pursue secure growth through geographical and property sector diversification. Major steps in structuring the Foncière des Régions Group, which now encompasses several specialised listed companies, include the purchase-merger of Bail Investissement, the strengthening of the housing portfolio in Germany, access to the Italian market via Beni Stabili’s entry into the Foncière des Régions Group, and the creation of Foncière Europe Logistique in the logistics property sector.
The Foncière Growth in portfolio value des Régions Group In € millions is a complete property operator 14,000 To maximise the value of its portfolio, Foncière des Régions has organised its asset management teams by property sector and country. Furthermore, 10,000 the Group is backed by property management teams located close 7,700 to market, both in France via seven regional management centres and internationally via its organisations in Germany and Italy. 4,900
1,700
2004 2005 June 2006Dec. 2006 May 2007
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Foncière des Murs (SIIC status(1)) SERVICE-SECTOR PROPERTY Parcs GFR France and Belgium: €2.2bn CAR PARKS France: €0.2bn 24% 59% Purchase-merger of Bail Investissement in 2006
Foncière Europe Foncière Logistique des Régions (SIIC status(1)) (SIIC status(1)) LOGISTICS AND LIGHT- OFFICE PROPERTY INDUSTRIAL PREMISES France: € France: 85%*** 3.5bn* €0.8bn
Foncière Développement Logements (SIIC status(1)) Beni Stabili HOUSING PROPERTY (listed in Milan) 35%** France and Germany: OFFICE PROPERTY €3bn Italy: €4.2bn
36%
A property-sector based organisation
(1) LISTED PROPERTY INVESTMENT COMPANY (SOCIÉTÉ D’INVESTISSEMENT IMMOBILIER COTÉE). * EXCLUDING LEASE-FINANCING ACTIVITY. ** BASED ON VALUES AT 31 DECEMBER 2006 AND THE CONCLUSION OF THE FONCIÈRE DES RÉGIONS-BENI STABILI TRANSACTION. *** ULTIMATE OBJECTIVE, TO BE SPUN OFF FROM FDR.
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… AT THE CORE OF A EUROPEAN EXPANSION STRATEGY
The Foncière des Régions Group has grown in several stages since 2001 • It expanded in France through transactions to outsource office buildings and housing units across the country and by creating and listing dedicated property investment companies. • It diversified into new property sectors, including the service and logistics property sectors. • Since 2005, it has expanded its presence in Europe through selective investments, namely in Germany with the acquisition of 45,000 housing units, in Belgium to accommodate the growth of the Accor hotel group, and in Italy. Committed to dynamic growth on a European scale, the Group aims to replicate the diversified business model that has brought it so much success in France, notably in Germany and Italy. By mid-2007, half of the Group’s asset base is expected to be located outside of France.
A leading, diversified property investment company in Europe (mid-2007)
1% Car parks 17% Germany 23% Housing property
53% 53% France Office property
16% Service-sector property 30% Italy
5% Logistics and light-industrial premises 2% Retail property
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A diversified asset base valued at €14 billion and located in three European countries (mid-2007)
Office property Logistics and light-industrial premises Housing property Service-sector property Car parks Retail property
Seven regional offices in France The Foncière des Régions Group in Germany
100%
North-West Belgium Oberhausen 100% Germany Île-de-France Eastern France Centre-West Stuttgart 3% 9% 10% 49%
10% 29% Rhône-AlpesRh
South-West
South-East 90% Italy
■ 750 employees ■ €850m in annual rents ■ €14bn portfolio ■ Three management and development platforms in Europe ■ 350 employees in France ■ 300 employees in Germany ■ 100 employees in Italy
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A RESPONSIBLE COMPANY
Foncière des Régions and its subsidiaries subscribe to sustainable development practices in their actions, striving consistently to improve the asset base and test new approaches at pilot projects.
Foncière des Régions has set 34 sites totalling a combined 800,000 sqm of surface area. ICPE (Installations Classées pour environmental performance la Protection de l’Environnement) are French and control objectives for several environmental regulations governing installations years. It has focused efforts classified for the protection of the environment. on implementing a programme to standardise the environmental Controlling natural quality of the assets in its and technological risks portfolio in the following areas: Foncière des Régions implemented a new regulation requiring sellers and lessors to inform buyers or tenants of any natural or technological property Quality testing of natural gas risks, before the rule went into effect on Under an agreement signed with natural gas 1 July 2006. supplier Gaz de France, 842 housing units in the asset base were quality tested in 2006. BMJ Ratings Since 2005, the Group has sought to assess Tracking ICPE-compliant its performance in terms of sustainable development logistics sites and to identify areas of progress. To that end, A centralised environmental reporting system it contracts each year BMJ Ratings, the corporate was put into place in 2006, for all of the Group’s responsibility rating agency, to examine Foncière ICPE-classified logistics platforms, representing des Régions’ organisation and practices.
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MANIFOLD PROPERTY KNOW-HOW
The international expansion of Foncière des Régions and its subsidiaries has significantly increased the Group’s staffing levels. The Group currently employs nearly 750 persons in Europe in a widely varied capacities, ranging from asset management and property management to 622 administrative and financial functions. employees at 31 December 2006, and nearly To accommodate the rapid growth 750 employees of the real estate activities, the human by mid-2007 resources strategy is focused on managing human resources, facilitating change, 54% organising and training. of the workforce is based outside The application of this strategy can be France seen in a myriad of ways, from continuous training programmes and attractive 3.6% compensation packages designed to build of payroll costs in France are dedicated employee loyalty, to constructive labour to training relations and constantly improved internal communications.
+ FOR MORE INFORMATION, please refer to Note 1.9 in Volume 2 of this report, Financial Year 2006.
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A DIVERSIFIED REAL ESTATE O
Office buildings Housing in Essen, A Co in Poitiers, France Germany p.26 p. 30 p. 34 FONCIÈRE DES RÉGIONS FONCIÈRE DÉVELOPPEMENT FONCIÈRE LOGEMENTS DES MURS
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E OFFERING
A Courtepaille restaurant property A logistics platform The Charles-de-Gaulle car parks owned by Foncière des Murs in Genas, France in Metz, France p. 38 p. 42 FONCIÈRE EUROPE LOGISTIQUE PARCS GFR
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Foncière des Régions, a large European property invest me
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est ment company
Foncière des Régions has become a leading office property investor following the purchase-merger of Bail Investissement, the acquisition of the Technical portfolio of 206 buildings leased to France Télécom, the continuation of transactions to enhance development and capital growth, and the acquisition of a controlling interest in Beni Stabili.
FONCIÈRE DES RÉGIONS OWNS A DIVERSIFIED OFFICE PROPERTY PORTFOLIO Spread across the key economic regions of France, the portfolio is characterised by: An office building leased to IBM in Bordeaux • the diversity of its assets and locations; • its long-term leases; • strong rental partnerships; • a high level of profitability; • abundant redevelopment opportunities.
Fiscal 2006 was marked by the strong growth of the office property activity and large urban development projects.
€3.5 bn (excl. transfer duties, incl. the Technical portfolio) in consolidated portfolio value 99.4% occupancy rate
2.3 million sqm of surface area
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Foncière des Régions
€ m including selling costs. As part of the transaction, 182 Foncière des Régions acquired an indirect 15% interest in asset disposals in 2006 % 7. 4 in Altarea for €150 million via the Altapar holding Average yield (including transfer duties) company. CONSTRUCTION, CAPITAL €273 m GROWTH AND URBAN in rental income for 2006 PLANNING PROJECTS PURCHASE-MERGER Foncière des Régions’ expertise covers the entire real estate production chain, from product design OF BAIL INVESTISSEMENT BY to everyday property management. By conducting construction, remodelling and urban planning projects FONCIÈRE DES RÉGIONS upstream, Foncière des Régions has positioned itself as The purchase-merger of Bail Investissement gave a partner of both property users and local authorities. birth to one of the largest office property investment As a property investor and operator, the Foncière businesses. des Régions Group can provide public sector planners Fiscal 2006 was a particularly eventful year with with all the guarantees of an operator that has solid the acquisition in January of the Technical portfolio partnership experience. € of 206 office buildings valued at nearly 1,573 million, Foncière des Régions is positioning itself in the long including transfer duties. Most of the buildings term as a true urban assembler, able to meet the are leased to France Télécom. diverse needs of all city stakeholders. As an investor, Foncière des Régions is active in several INTEREST ACQUIRED sizeable urban development projects. More than € IN ALTAREA 600 million was committed to this activity in 2006. “Vélizy Campus”, building the new world headquarters The Group’s retail property portfolio, which included of Dassault Systèmes in Vélizy-Villacoublay: The 12 shopping centres, was transferred to retail property construction of Dassault Systèmes new head offices investment company Altarea for €328.5 million, got under way in the fall of 2006. The building is being constructed according to the HQE (High Quality Environmental) standard for green building. This investment, which is being realised in partnership FONCIÈRE DES RÉGIONS TEAMS UP with Morgan Stanley (50%), FSA Properties (25%) WITH BENI STABILI, MARKING A MAJOR STEP and Foncière des Régions (25%), concerns four buildings IN THE EUROPEAN EXPANSION OF with a total surface area of 60,000 sqm, to be delivered in 2008. The space will be rented under 12-year leases. THE FONCIÈRE DES RÉGIONS GROUP “Carré Suffren”, 25,500 sqm at the foot of the Eiffel Tower: The remodelling of the old headquarters Beni Stabili, one of Italy’s leading listed property of the CEA, France’s Nuclear Energy Agency, investment companies, has a real estate portfolio valued on Rue de la Fédération in the 15th district of Paris, at €4.2 billion, generates €200 million in annual rents is scheduled to be completed in 2008. The building is being fully renovated to the highest market standards and has a first-rate operating structure. The portfolio, under an investment partnership between Foncière des most of which is located in cities in the north of Italy, Régions (60%) and Predica (40%). is 93% comprised of office buildings acquired through outsourcing transactions with Telecom Italia, Fiat, San Paolo, Banca Intesa, and other major companies.
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Taking part in the development of the new “Amphithéâtre” quarter in Metz: Foncière des Régions was selected to build and operate the office and housing space of the Amphithéâtre project, which encompasses offices, housing and retail space. This urban development project, which seeks to create new spaces for city living, will also include a 720-space car park, to be built and managed by Parcs GFR, the car park subsidiary of the Foncière des Régions Group. Urban development in the heart of Marseille with in Montpellier, France the “Euromed Center” Declared to be of vital national interest in France, the Euroméditerranée urban
Main hall of an office building leased to IBM development project is aimed at making Marseille a first-call European metropolis.While strengthening the development of the business district among property users and investors, the Euroméditerranée programme is also geared towards developing services for office workers and new inhabitants. To that end, the city of Marseille decided to develop 20 hectares of land near the city centre and the Joliette commercial port. Under an investment partnership, Foncière des Régions and Predica, the life insurance company of the Crédit Agricole group, are jointly investing in Euromed Center, a 70,000 sqm building complex that will house offices, a luxury hotel, a multiplex cinema, retail spaces, and parking spaces by 2011. Foncière des Régions and Predica’s combined investment in Euromed Center totals €180 million. from the Saint-Lazare train station in Paris train the Saint-Lazare from
A building that combines offices, steps away space and housing– two retail Office portfolio value at 31/12/2006 by geographical region 7% Rhône-Alpes (€254.3 m) 64% Île-de-France (€2.2 bn) (of which Paris 32%, or € 1.1 bn) 7% PACA (€244.8 m) 6% North-West (€194.2 m) 7% Centre-West (€231.6 m) 3% South-West (€112.1 m) 7% Eastern France (€237.4 m) TOTAL: €3.5 bn An office building in Nantes, France
Foncière des Régions is a listed property investment company under France SIIC regime. Its stock is listed on Euronext Paris’ Eurolist, compartment A.
+ FOR MORE INFORMATION, PLEASE CONSULT: www.foncieredesregions.fr
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Foncière Développement Logements, a pure play er
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ay er in the residential property markets of France and Germany
Foncière Développement Logements houses all the Group’s residential property assets under one roof. At the end of its first year of operations, this listed, property investment company had amassed a portfolio of 47,800 housing units with a combined value of over €3 billion, excluding transfer duties. Germany accounted for 80% of the assets, with the remaining 20% located in France.
A RESIDENTIAL REAL ESTATE SPECIALIST Established at the end of 2005 and active in Germany and France, Foncière Développement Logements is a growing property investment company that has become a leader in residential real estate with a portfolio valued at €3 billion,
A residential building in Dijon,A residential France excluding transfer duties, at 31 December 2006. The assets in Foncière Développement Logements’ portfolio are highly diversified in terms of nature and geographical location with 44,470 housing units in Germany and 3,321 housing units in France. With more than thirty years of experience in residential property, the Group has a long history of forging real estate partnerships, be it with the French iron and steel industry or the CEA, France’s Nuclear Energy Agency. The company’s strategy is based on establishing active partnerships.
Foncière Développement Logements: • a partnership limited by shares (Société en commandite par actions) managed by the Foncière des Régions Group; • 36% of the company’s capital is held by Foncière des Régions; • market capitalisation totalled approximately €1.4 billion at 31 December 2006.
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Foncière Développement Logements
47,791 €3bn housing units in bloc value, excluding transfer duties €18 8 m in rents
Germany at the end of 2006. At the same time, Immeo PORTFOLIO GROWTH AND Wohnen, a German property management company EUROPEAN EXPANSION with 300 employees, joined the Group, and is now its operating structure in Germany. For Foncière Développement Logements, the year’s main transaction was conducted in Germany, where In France, Foncière Développement Logements also the structure of the residential property market and had a very active first year. the country’s economic recovery have combined to – It acquired 767 housing units situated mainly create a promising outlook. In a significant growth in Île-de-France and valued at €165 million, excluding operation, Foncière Développement Logements transfer duties, from Predica, a member of the acquired nearly 40,000 housing units in the Düsseldorf Crédit Agricole group. basin valued at €2.1 billion, excluding transfer duties. – It merged with Sovaklé, an unlisted Foncière des At the same time, the company purchased Régions subsidiary, resulting in the contribution 5,500 housing units in the Düsseldorf area previously of 2,464 housing units located primarily in major owned by Foncière des Régions. At 31 December 2006, regional French cities. the two German asset portfolios generated annual – It acquired a portfolio of 361 residential units rents of €158 million. in Paris and west of Paris valued at €104 million, Following the disposal of some non-strategic assets, excluding transfer duties, from Cardif, a member Foncière Développement Logements had a residential of the BNP Paribas group. property portfolio with 44,470 housing units in ENLARGED SHAREHOLDER BASE To fund its growth, FDL realised two successive capital increases totalling nearly €1 billion. 40,000 HOUSING UNITS AROUND At the same time, the company’s shareholder DÜSSELDORF base was opened to three new shareholders, including the Banque Populaire group, Cardif Assurance Vie (BNP Paribas group), and Morgan Stanley Real Estate In November 2006, the Group acquired a portfolio of Funds. Lastly, Foncière des Régions and Predica publicly 40,000 housing units in the Düsseldorf region, as well as placed some of their FDL shares, thereby enlarging the Immeo Wohnen, a property management company with company’s free float to nearly 9% of its share capital. 300 employees. The investment in this portfolio, valued at €2.1 billion excluding transfer duties, has made FDL a leading European property investment company specialised in housing.
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French portfolio value by geographical region
in Bordeaux, France 6.2% Eastern France 56.4% Île-de-France FDL’s residential property portfolio residential FDL’s 1.0% North-West 2.1% Centre-West 6.7% South-West 18.9% Provence-Alpes-Côte d’Azur 8.7% Rhône-Alpes TOTAL: €632.1 m excl. transfer duties
German portfolio value by geographical region 41% Duisburg 24% Essen 9% Mülheim in Strasbourg, France 6% Oberhausen
FDL’s residential property portfolio residential FDL’s 6% Düsseldorf 14% Other TOTAL: €2.4 bn excl. transfer duties
Shareholder base of Foncière Développement Logements at 31 December 2006 36.2% Foncière des Régions 15.1% Predica 11.4% MSREF 9.1% Cardif 8.9% Free float
in Essen, Germany 6.8% GMF 5.5% ACM
FDL’s residential property portfolio residential FDL’s 5.4% Generali Vie 1.7% Banque Populaire
Foncière Développement Logements is a listed property investment company under France SIIC regime. Its stock is listed on Euronext Paris’ Eurolist, compartment A.
+ FOR MORE INFORMATION, PLEASE CONSULT: www.fdlogements.fr
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Foncière des Murs, a ranking specialist in a buoyant m
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nt market
Foncière des Murs continued to grow at a steady pace in 2006. The value of the company’s property portfolio advanced 40% during the year, fuelled by the acquisition of a second portfolio of Accor hotels and the expansion of its activity with the signature of a strategic partnership with the Courtepaille group.
LONG TERM INVESTOR SPECIALISED IN SERVICE-SECTOR PROPERTY OUTSOURCING TRANSACTIONS Foncière des Murs was established in 2004, to acquire real estate belonging to large service companies in the hotel, leisure and healthcare sectors seeking to sell and lease back their property assets. Now tenants of Foncière des Murs, these partners continue to manage and operate their establishments under their business trade names: Accor hotels, Courtepaille restaurants, and Korian retirement homes. Foncière des Murs: • a partnership limited by shares (Société en commandite par actions) managed by the Foncière des Régions Group;
The Hotel Sofitel spa in Porticcio,The Corsica, France • 24% of the company’s capital is held by Foncière des Régions; • market capitalisation totalled approximately €1 billion at 31 December 2006.
5.9 % 100 % average yield on the portfolio occupancy rate
136€ m in annual rents for 2006
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Foncière des Murs
€ Novotel (20%), and Sofitel (5%) banners, with 12-year 2.2 bn term leases and rents representing on average 14% of in portfolio value excluding transfer duties the sales generated by each establishment. The transaction was finalised for 55 hotels and 3 thalassotherapy spas in France, and 12 hotels Foncière des Murs makes long-term commitments in Belgium during the second half of 2006. to its partner-tenants, accommodating the growth of their property stocks with a genuine drive to share This new step in the active partnership between in the creation of value. Accor and Foncière des Murs was accompanied by an €89-million renovation project to be realised During the year, Foncière des Murs signed long-term over a three-year period. Under the terms of partnership agreements with the Accor, Korian and the programme, Accor will contribute €50 million Courtepaille groups. At 31 December 2006, the value to the work. of the portfolio managed by Foncière des Murs totalled €2.2 billion, excluding transfer duties. LEISURE, A NEW PARTNERSHIP HOTELS,AN ACTIVE WITH COURTEPAILLE PARTNERSHIP WITH ACCOR RESTAURANTS Already the hotel group’s leading lessor in France, In October 2006, Foncière des Murs finalised the Foncière des Murs signed a memorandum acquisition of 69 Courtepaille restaurant properties of understanding with Accor in the spring of 2006 for €108.5 million, marking the beginning of new to acquire 75 new hotel properties valued at long-term partnership with a company recognised €583 million. The deal increased the number as a leader in its field. Foncière des Murs plans of Accor hotels owned by Foncière des Murs to 196 assets, to accommodate the growth of the Courtepaille chain, which continue to be operated by the hotel group which has restaurant properties all over France. under the Ibis (55% of rooms), Mercure (20%), Courtepaille’s entire property stock was renovated five years ago.
HEALTHCARE, LEADING LESSOR OF THE KORIAN 69 COURTEPAILLE RESTAURANTS GROUP IN FRANCE In the healthcare sector, Foncière des Murs owns The acquisition in 2006 of 69 Courtepaille restaurants, 54 senior citizens retirement homes and one € valued at nearly 1.2 billion (excluding transfer psychiatric clinic operated by the Korian group. duties) at 31 December 2006, marked the beginning Under the agreement with Korian, the French leader of new business partnership for Foncière des Murs. in dependent care services, Foncière des Murs The transaction, very similar to those realised with benefits from long-term, 12-year term leases with triple-net rents. Accor in the hotel sector and Korian in healthcare, was perfectly in tune with the Group’s strategy of seeking long-term investment and secure cash flow and 55 returns. The 12-year term leases, which may be healthcare 3 establishments renewed up to three times, ensure secure revenues spas over the long term. The portfolio generates annualised 196 triple-net rent of €7.3 million. hotels 69 restaurants
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A €301.8-MILLION CAPITAL INCREASE TO FUND GROWTH To ensure funding for its acquisitions and continued development, Foncière des Murs increased its capital by €301.8 million in October 2006, through a fully subscribed rights issue with pre-emptive rights for existing shareholders. At the end of the year Foncière des Murs’ market capitalisation surpassed €1 billion.
Portfolio value by asset type at 31/12/2006 A Courtepaille steakhouse restaurant in Chartres, steakhouse restaurant A Courtepaille France 28% Budget hotels 46% Mid-range hotels 6% Luxury hotels 15% Healthcare sector 5% Restaurant properties
Portfolio value by geographical region at 31/12/2006 27% Île-de-France 15% Paris 52% French regions operated by the Korian group the Korian by operated 6% Belgium A residence for senior citizens in Bordeaux senior citizens for A residence
Annualised rents by property sector at 31/12/2006 80% Hotel sector 5% Leisure sector (restaurants) 15% Healthcare sector
Shareholder base at 31/12/2006 19.3% Generali Vie 18.1% Predica 2.7% Pacifica 8.2% Cardif (BNP) The Hotel Ibis Thalassa in Hyères,Thalassa Hotel Ibis The France 7.3% Free float 23.6% Foncière des Régions 20.8% ACM Vie
Foncière des Murs is a listed property investment company under France SIIC regime. Its stock is listed on Euronext Paris’ Eurolist, compartment A.
+ FOR MORE INFORMATION, PLEASE CONSULT: www.foncieredesmurs.fr FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT 37 WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 38
Foncière Europe Logistique, a French leader
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As the second-largest investor in logistics property in France and the largest owner of light industrial premises in Paris, Foncière des Régions is a leading player in the logistics property sector. Investments totalling €200 million were committed to this activity in 2006, while a number of sizeable projects got under way. With the creation of Foncière Europe Logistique in mid-2007, the growth of the logistics activity should continue apace.
LONG EXPERIENCE AND TREMENDOUS KNOW-HOW IN LOGISTICS PROPERTY INVESTMENT Foncière des Régions today ranks as the second-largest real estate investor in the logistics sector with a portfolio of logistics and light industrial premises valued at €661 million, excluding transfer duties, and totalling 905,000 sqm of surface area. Ideally situated on the North-South logistics axis of France, encompassing Lille, Paris, Lyon, and Marseille, the portfolio is 75% comprised of A-class premises meeting the market’s highest standards. Foncière des Régions also ranks among the few commercial real estate companies with the specific and essential know-how to successfully operate in this complex and heavily regulated activity. Logistics platform in Saint-Witz, platform Logistics France
€50 m in rental income form logistics and light-industrial premises in 2006
97.2% occupancy rate
Foncière Europe Logistique will be created as a partnership limited by shares, or SCA (Société en commandite par actions) under French commercial law. Foncière des Régions will be its managing partner.
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Foncière Europe Logistique
concession on 150,000 sqm of warehouses built on land MAJOR INVESTMENTS owned the SNCF railway in Pantin, just one kilometre Four sizeable investments totalling some €200 million from the Paris ring road. After buying out the other IPB € made their mark on 2006. partners for 3.5 million, the Group concluded an agreement with the SNCF to cancel the occupancy Saint-Martin-de-Crau logistics park agreement, thereby becoming the site’s sole owner (Bouches-du-Rhône region) for an investment of €48.1 million. In addition, The Group acquired a 85,000-sqm logistics platform Foncière des Régions acquired two contiguous lots for €40.2 million. The site is fully leased to Castorama. of land for €11.7 million, including one covering Two thirds of the rents are secured over a ten-year six hectares and the other two hectares. period. Long-term partnership with port of Dunkerque (North) CREATION OF FONCIÈRE Under an agreement signed in 2006, construction EUROPE LOGISTIQUE began on two logistics platforms with a combined surface area of 44,000 sqm, to be delivered in 2007. Foncière des Régions has decided to group its logistics The investment, which totalled €22 million, stems property portfolio into a dedicated subsidiary called from a partnership aimed at progressively developing Foncière Europe Logistique. Foncière Europe Logistique sizeable, available land reserves to accommodate (FEL) will seek to become a leading real estate the growth of the port. investment company in Europe’s logistics property Multi-modal logistics park in Bollène (Vaucluse) sector. To that end, the company plans to carry out an active growth strategy by enhancing the value of its Foncière des Régions signed an agreement with GTM assets, developing partnerships with logistics property to develop a 208,000-sqm logistics park at a prime users and realising new growth operations on its own. location in the Rhône valley, north of Montélimar. GE Real Estate France is accompanying the project and The first warehouse, representing an investment is expected to contribute €100 million to FEL. of €16 million, is scheduled to be delivered in 2007. In all, seven buildings are expected be built Once established in 2007, the new company will at the 70-hectare park. possess a portfolio of some 30 logistics platforms totalling more than 1 million sqm of space and valued Ownership over 18 hectares of land in Pantin at approximately €760 million. Foncière Europe (Seine-Saint-Denis) Logistique will thus begin its operations as the second- Bail Investissement has been a partner in IPB since largest logistics real estate investment company 1974. IPB is a property company that holds the in France. For the 2007-to-2012 period, Foncière Europe Logistique will have a development pipeline representing an additional 400,000 sqm of surface area and an investment of close to €250 million. AN EXTRAORDINARY SITE ON THE OUTSKIRTS OF PARIS
Following several agreements with the SNCF, France’s national railway company, Foncière des Régions has become the sole proprietor of the 18-hectare Pantin site. In the years ahead, a major development programme will be rolled out at the site, to complement the 150,000 sqm of existing warehouses with newly constructed logistics and light industrial premises.
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Logistics portfolio €640 m in assets Of the estimated portfolio value (excluding transfer duties), Foncière des Régions contributed €540 million in assets – 814,000 sqm – 75% of the properties are rated A-class – Asset value appreciated 20% on a same structure basis in 2006 – Average yield, including transfer duties, was 7.2%. Logistics portfolio value, excluding GEREF’s assets, by geographical A logistics platform in Corbas, platform A logistics near Lyon, France region at 31/12/2006 14% PACA 63% Île-de-France 6% North-West 2% Eastern France 15% Rhône-Alpes in Bussy-Saint-Georges, France The Gustave Eiffel logistics park logistics Eiffel Gustave The Light-industrial premises portfolio €121.2 m in assets Portfolio value excluding transfer duties – 90,500 sqm – 85% of assets are located in Paris – Asset value appreciated 16% on a same structure basis in 2006 – Average yield, including transfer duties, was 7.4%.
Light-industrial premises portfolio value by geographical region at 31/12/2006 87% Paris 13% Île-de-France A warehouse in Salon-de-Provence,A warehouse France
FOR MORE INFORMATION, PLEASE CONSULT: www.foncieredesregions.fr + (The Foncière Europe Logistique website at www.fonciereeuropelogistique.fr will go online in June 2007).
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Parcs GFR, an active participant in urban planning and de The 420-space Salinières car park in Bordeaux, 420-space Salinières The France A view of the future 619-space Esplanade car park in Metz, of the future A view France
+ FOR MORE INFORMATION, PLEASE CONSULT: www.foncieredesregions.fr
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nd development
The Company is also participating in urban renewal In 2006, Parcs GFR was able to triple projects in Metz, Marseille and Bourges, and developing the number of parking spaces under a car park for multiplex cinemas in Lyon. its management by implementing CREATION OF THE URBIS the business model shared by PARK BRAND all Group companies, i.e. fostering The management of Group car parks is now provided investment partnerships and by Urbis Park, an operating company created in 2006. All the car parks will progressively be grouped under geographical diversification. this new business trade name. The Tourny and Arsenal car parks in Bordeaux and Metz will be the first to sport the colours of the new Urbis Park brand.
STRONG GROWTH STRUCTURING AND STRATEGY GROWING THE CAR PARK By forming operating partnerships and participating ACTIVITY IN 2006 in public and private calls for tender, Parcs GFR plans to develop its activities in the following ways: In 2006, Parcs GFR tripled the number of parking spaces • acquiring privately owned car parks arising from new under its management and expanded its regional construction or urban renewal and planning projects; presence through acquisitions in Paris and Bordeaux. • acquiring existing car parks; In Bordeaux, Parcs GFR acquired BP 3000, which has • bidding on delegated management contracts for the concessions until 2042 to operate four car parks public services. in the centre of the capital of France’s Aquitaine region, in addition to one car park to be constructed. In Paris, following the acquisition of the Trinité car park by Parcs GFR, Predica contributed to the Company its Kléber and Marché Saint-Germain car parks, located respectively in the 16th and 6th districts of Paris. Sales in 2006 Predica now owns 40% of Parcs GFR. 19.5€ m ACQUISITIONS IN 2006 AND EARLY 2007 4,330 spaces, representing sales of €8 million, are in development (to be put into service between CITY CAR PARK NUMBER OF PARKING SPACES 2007 and 2011) PARIS TRINITÉ 750 BORDEAUX BP 3000 3,043 PARIS KLÉBER 279 8,215 €216 m PARIS MARCHÉ SAINT-GERMAIN 412 parking spaces in portfolio value LYON MULTIPLEXE PATHÉ Approx. 850 in operation (excluding transfer duties) MARSEILLE PARKING EUROMED 1,000 of which 18% are freehold BOURGES BOURGES-AVARICUM Approx. 850 ABOUT 7,200 ADDITIONAL PARKING SPACES
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FONCIÈRE DES RÉGIONS ASSET BASE AT 31 DECEMBER 2006 OFFICE PROPERTY – FONCIÈRE DES RÉGIONS
Centre-West CITY ADDRESS SURFACE AREA IN SQM
DIORS RUE DANIEL-CADOUX 33,080 TOURS TOURS – 8, RUE BOUTTEVILLE 13,575 NANTES NANTES – 10 BIS/11-13/14-19, ALLÉE DES TANNEURS 12,954 ANGERS ANGERS – 25/27, QUAI FÉLIX-FAURE 11,613 POITIERS 30, RUE SALVADOR-ALLENDE 10,211 TOURS 100, RUE MARCEAU 8,390 CHARTRES 11, AV. DE SULLY 7,678 LE MANS 12, RUE JULIEN-PESCHE 7,273 ORLÉANS 52-54, RUE EUGÈNE-TURBAT 7,068 POITIERS 2, RUE SAINT-CHARLES 6,966 TOURS 2/14, RUE EUGÈNE-GOUIN 6,771 RENNES 183, AV. DU GÉNÉRAL-PATTON 6,308 BREST RUE DUQUESNE 6,204 TOURS 8, PLACE DU PRÉSIDENT-COTY 4,702 ORLÉANS 10 BIS, RUE EUGÈNE-VIGNAT 4,679 GUÉRET 1, AV. DE LA RÉPUBLIQUE 4,566 NANTES 6-8, RUE GASTON-VEIL 4,489 QUIMPER 11, RUE MIOSSEC 3,848 NANTES 2, PLACE DAUBENTON ET 6, RUE FULTON 3,722 QUIMPER 1, RUE CHANOINE-KERBRAT 3,474 NIORT 8 BIS, RUE DE LA BOULE-D’OR CEDEX 3,409 LANNION ROUTE DE SERVEL 3,370 CHOLET AV. GEORGES-MANDEL (CAA) 3,291 LE MANS 1, RUE PAUL-COURBOULAY 2,942 CHARTRES 3, BD MAURICE-VIOLLETTE 2,939 CHÂTEAUROUX 6, RUE ROBERT SCHUMANN ET RUE BERGSON 2,924 NANTES 1, RUE DAUBENTON 2,917 LE MANS 100, AV. JEAN-JAURÈS 2,854 LA ROCHE-SUR-YON 39 AND 45, RUE BOSSUET 2,824 SAINT-AGATHON 8, AV. DU GOËLO 2,824 DREUX 9 AND 11, RUE LOISELEUR-DES-LONGCHAMPS 2,822 RENNES 50, RUE DE REDON 2,730 VANNES 22, ALLÉE DU PARGO 2,609 LA ROCHE-SUR-YON 8 TER, RUE SALVADOR-ALLENDE 2,554 RENNES 190, RUE DE CHÂTILLON 2,462 CHARTRES 31, RUE DES RÉSERVOIRS 2,397 TOURS 26, RUE DE LA BOURDE 2,385 BLOIS 25 BIS, RUE FRANCIADE 2,343 LAVAL RUE CLAUDE-CHAPPE 2,292 POITIERS 59, BD DU GRAND-CERF 2,272 CHÂTELLERAULT 61, BD ARISTIDE-BRIAND 2,262 BREST RUE THÉODORE-BOTREL 2,196 NANTES 1, RUE DES CADENIERS 2,150
TOTAL SURFACE AREA 229,339 NUMBER OF ASSETS 43
ASSETS HELD FOR SALE IN SQM 53,522 NUMBER OF ASSETS 22
MISCELLANEOUS ASSETS IN SQM 29,301 NUMBER OF ASSETS 26
TOTAL 312,162 NUMBER OF ASSETS 91
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Eastern France CITY ADDRESS SURFACE AREA IN SQM
METZ 3, RUE PERIGOT, CENTRE DEVANT-LES-PONTS 12,946 STRASBOURG 1, RUE FRITZ-KIENER 11,527 ILLZACH 2, RUE DE L’ILL 10,611 REIMS 2, RUE SAINT-CHARLES 10,359 CHALON-SUR-SAÔNE 20, AV.VICTOR-HUGO 10,222 DIJON 7/9, RUE JOLIET 10,165 MULHOUSE 2, RUE HENNER 8,806 VILLERS-LÈS-NANCY 2, BD DU DOCTEUR-CATTENOZ 8,485 METZ 100, AV. ANDRÉ-MALRAUX 8,120 NANCY 13/21, RUE SAINT-JEAN/15, RUE RAUGRAFF 8,020 REIMS 1, RUE EUGÈNE-DESTEUQUE 6,724 BESANÇON 57, RUE BERSOT 6,377 NANCY 19, RUE ÉMILIE-BERTIN 5,897 NANCY 3, RUE DU TAPIS-VERT 5,311 TROYES 2, RUE JARGONDIS 5,282 NANCY 2, AV. FOCH 4,267 NANCY 10, RUE MAZAGRAN/4, PLACE THIERS 3,860 VILLERS-LÈS-NANCY 8, ALLÉE DE LONGCHAMP 3,660 NANCY 2,VIADUC KENNEDY 3,264 SENS 10, BD DE VERDUN 3,241 SAINT-MAX 4 BIS, RUE D’ESSEY 3,022 MULHOUSE 22, BD DE L’EUROPE 2,767 BESANÇON 105, RUE DE VESOUL 2,559 LAXOU 88, RUE DE LA RÉPUBLIQUE 2,548 STRASBOURG 35, AV. DE LA PAIX 2,543 METZ 2, RUE DU GÉNÉRAL-FERRIÉ 2,514 STRASBOURG RUE DES CLARISSES 2,461 MÂCON 10, COURS DE L’EVÊQUE-MOREAU 2,353 CHALON-SUR-SAÔNE 17, AV. DE PARIS 2,219 AUXERRE 7, BD VAUBAN ET RUE BUGEAUD 2,217 DIJON 23-25, BD VOLTAIRE 2,189 PONT-SAINTE-MARIE 24, RUE MARC-VERDIER 2,150 BESANÇON 1 AND 5, RUE DU PORT-CÎTEAUX 2,146
TOTAL SURFACE AREA 178,832 NUMBER OF ASSETS 33
ASSETS HELD FOR SALE IN SQM 60,638 NUMBER OF ASSETS 24
MISCELLANEOUS ASSETS IN SQM 34,847 NUMBER OF ASSETS 28
TOTAL 274,317 NUMBER OF ASSETS 85
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Office property
North-West CITY ADDRESS SURFACE AREA IN SQM
LILLE 45, RUE DE TOURNAI 15,265 VILLENEUVE-D’ASCQ 2, CHEMIN DE LA MARE 11,201 ARRAS 11, RUE VICTOR-LEROY 7,040 LA MADELEINE 99, AV. DE LA RÉPUBLIQUE 6,614 CAEN 8-10, PROMENADE DU FORT 5,947 CLERMONT-FERRAND 10, AV. CHARRAS 5,028 LILLE – LA MADELEINE 174, AV. DE LA RÉPUBLIQUE 4,715 CAEN RUE GEORGES-LEBRET 4,588 MARCQ-EN-BARŒUL RUE DES CHÂTEAUX/ZI DE LA PILATERIE 3,932 AMIENS 20, AV. PAUL-CLAUDEL 3,622 BERNAY RUE DU GÉNÉRAL-DE-GAULLE 3,345 CAEN 10/12, RUE DE L’ACADÉMIE 3,175 BEAUVAIS 10, RUE DE L’AVELON 3,108 VERNON PLACE D’ÉVREUX 2,966 LILLE RUE MAUGRE ET 4, RUE DE COURTRAI 2,966 AMIENS RUE ZAMENHOF 2,863 HAVRE AV. JEAN-JAURES 2,782 DUNKERQUE 94, RUE DE LILLE 2,717 SOISSONS 16, BD GAMBETTA 2,687 SAINT-ÉTIENNE-DU-ROUVRAY 183, RUE DE PARIS 2,513 SAINT-QUENTIN 2, RUE L’ABATTOIR 2,425 ROUEN – MONT-SAINT-AIGNAN PARC D’ACTIVITÉS TECH. DE VATINE – 13, RUE JACQUES-MONOD 2,378 CAEN 38, RUE DES FRÈRES BOUTROIS 2,320 LILLE 42, RUE JEAN-SANS-PEUR 2,287 ROUBAIX 8, RUE DU CURE 2,229 CREIL 3, RUE HENRI-BARBUSSE – RUE GAMBETTA 2,228 AMIENS 55, RUE DEJEAN 2,208 MARGNY-LÈS-COMPIÈGNE 365, RUE LOUIS-BARTHOU 2,184
TOTAL SURFACE AREA 115,333 NUMBER OF ASSETS 28
ASSETS HELD FOR SALE IN SQM 67,431 NUMBER OF ASSETS 25
MISCELLANEOUS ASSETS IN SQM 25,503 NUMBER OF ASSETS 23
TOTAL 208,267 NUMBER OF ASSETS 76
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South-East CITY ADDRESS SURFACE AREA IN SQM
NICE 125, AV. BRANCOLAR 11,093 MONTPELLIER 196-382 AND 434, RUE DE TRENCAVEL 9,222 AVIGNON 1630, AV. DE LA CROIX-ROUGE 8,566 SOPHIA-ANTIPOLIS 45, ALLÉE DES ORMES 8,409 MARSEILLE 83, RUE FÉLIX-PYAT 7,508 NÎMES 2, RUE DE VERDUN 7,137 NICE 9, BD FRANÇOIS-GROSSO 6,451 NICE 36, RUE GOUND CEDEX 5,931 MONTPELLIER 38 TER, AV. SAINT-LAZARE 5,849 MARSEILLE 78, CHEMIN DU SABLIER 5,493 NARBONNE 30, RUE PROUDHON 5,171 NÎMES 1, RUE DE VERDUN AND 62, BOULEVARD JEAN-JAURÈS 5,137 CARCASSONNE 78, ALLÉE D’IÉNA 5,112 NÎMES 22, BD NATOIRE 4,775 DIGNE-LES-BAINS 24-26, AV. DE SAINT-VÉRAN 4,431 AIX-EN-PROVENCE 12-14, AV. PAUL-CÉZANNE 4,205 PERPIGNAN 9001, BD NUNGESSER-ET-COLIS 3,810 AIX-EN-PROVENCE IMPASSE DES FRÈRES-PRATESI 3,778 TOULON AV. DAVELUY 3,686 BASTIA BD GRAZZIANI 3,489 MONTPELLIER 114, RUE TRIOLET – AV. SABATIER-D’ESPEYRAN 3,109 MONTPELLIER RUE DE TRENCAVEL 3,056 BÉZIERS BD DU LANGUEDOC – AV. RHIN-ET-DANUBE E17 2,925 AVIGNON 170, AV. PIERRE-BÉRÉGOVOY 2,905 MARSEILLE 3-5, RUE SAINTE (ANGLE RUE LULLI) 2,342 ALÈS PLACE DES MARTYRS 2,323 MONTPELLIER PARC EUROMÉDECINE 2,265 BÉZIERS 10-12, RUE GEORGES-MANDEL 2,217 SAINT-LAURENT-DU-VAR 156, AV. ZILLER – 232, AV. SAUVAIGON 2,157 MARSEILLE 35, BD FRANCOISE-DUPARC (8, RUE LINNÉ) 2,102 CARPENTRAS 40, RUE CHARLES-BOURSEUL 2,015
TOTAL SURFACE AREA 146,669 NUMBER OF ASSETS 31
ASSETS HELD FOR SALE IN SQM 59,720 NUMBER OF ASSETS 26
MISCELLANEOUS ASSETS IN SQM 73,536 NUMBER OF ASSETS 57
TOTAL 279,925 NUMBER OF ASSETS 114
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Office property
Rhône-Alpes CITY ADDRESS SURFACE AREA IN SQM
LYON 9, RUE DES CUIRASSIERS 15,301 LYON 288, RUE DUGUESCLIN 12,593 VILLEURBANNE 35-37, RUE LOUIS-GUÉRIN 11,812 CLERMONT-FERRAND 1, RUE DE CHÂTEAUDUN 9,189 SAINT-ÉTIENNE 4, RUE DU LIEUTENANT-MORIN 8,265 LYON 15, RUE DES CUIRASSIERS 7,224 ISLE-D’ABEAU 12, RUE DU CREUZAT 7,158 CHAMBÉRY 203, FAUBOURG MONTMÉLIAN 6,183 GRENOBLE 11, RUE ESCLANGON 5,960 ANNECY CHEMIN DES TETS 5,070 LYON 1, RUE DUPHOT – 36, RUE MAZENOD 5,047 ANNECY 69, AV. DES ROMAINS 4,392 VALENCE 179, AV.VICTOR-HUGO 4,190 CHAMBÉRY 114, AV. DU COMTE-VERT 4,114 ROANNE 21-23, RUE JEAN-MACÉ 3,316 BOURG-EN-BRESSE RUE JULIETTE-RÉCAMIER 2,869 LYON 20, RUE EDISON 2,803 ANNEMASSE 45A, RUE DU CHABLAIS 2,749 BOURGOIN-JALLIEU PLACE DE LA GARE – 1, AV. DES ALPES 2,550 VILLEURBANNE 42, AV. HENRI-BARBUSSE 2,540 VOIRON 12, AV. JULES-RAVAT 2,484 CALUIRE-ET-CUIRE 2, AV. MARC-SANGUIER 2,477 LYON 51, RUE BENOIST-MARY 2,438 LYON 12, RUE BRIGADIER-VOITURET 2,204 CLERMONT-FERRAND 44, RUE DU MONT-MOUCHET 2,153 VIENNE 8 AND 10, AV. BEAUSÉJOUR 2,148 FONTAINE RUE GÉRARD-PHILIPE 2,130 ANNECY 7, AV. DE GENÈVE 2,083 MONTLUÇON 6, RUE JEAN-JAURÈS 2,067 LYON 1, BD JULES-FAVRE 2,041 CLERMONT-FERRAND RUE FÉLIX MEZARD – ZUP FLAMINA 2,020 LYON 203, AV. FÉLIX-FAURE 2,013
TOTAL SURFACE AREA 149,583 NUMBER OF ASSETS 32
ASSETS HELD FOR SALE IN SQM 43,443 NUMBER OF ASSETS 11
MISCELLANEOUS ASSETS IN SQM 27,983 NUMBER OF ASSETS 25
TOTAL 221,009 NUMBER OF ASSETS 68
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South-West CITY ADDRESS SURFACE AREA IN SQM
TOULOUSE 11-13, BD DELACOURTIE 5,020 AGEN RUE PAGANEL 4,474 MONTAUBAN 615, BD ALSACE-LORRAINE 4,164 PAU 34, AV. DE BUROS 2,902 PAU 35, RUE AMÉDÉE-ROUSSILLE 2,113 GOND-PONTOUVRE ZI N°3 LE GOND-PONTOUVRE 3,942 LIMOGES 27, RUE EUGÈNE-VARLIN CEDEX 3,529 TOULOUSE 108-110, RUE DE PÉRIOLE 3,462 ANGLET 21, RUE DE L’INDUSTRIE-PONTOTS 3,259 LIMOGES 28-30, RUE JULES-NORIAC 2,913 LIMOGES 8 TO 20, RUE DU CLOS-JARGOT 2,714 SAINT-GAUDENS 17, RUE DE L’INDÉPENDANCE AND 27, AV. DU MARÉCHAL-JOFFRE 2,639 TARBES 56, RUE LARREY 2,628 PAU ÉDOUARD HERRIOT 2,458 LIBOURNE 43, RUE JEAN-JACQUES-ROUSSEAU 2,349 LA ROCHELLE 1, AV. DU GÉNÉRAL LECLERC 2,313 BORDEAUX 28, RUE LOUIS-LIARD 2,250 MAZAMET PLACE DU MARÉCHAL-JOFFRE 2,100 MÉRIGNAC 4, RUE ISAAC-NEWTON 9,230 TOULOUSE 22, BD DE LA MARQUETTE 7,279 TALENCE 682, COURS DE LA LIBÉRATION 6,431 TOULOUSE 106, RUE DES TROÈNES 4,858 GOND-PONTOUVRE Z.I. 3 3,020 BERGERAC 50, ROUTE SAINTE-ALVÈRE – CAMPRÉAL EST 2,793
TOTAL SURFACE AREA 88,840 NUMBER OF ASSETS 24
ASSETS HELD FOR SALE IN SQM 8,205 NUMBER OF ASSETS 8
MISCELLANEOUS ASSETS IN SQM 35,580 NUMBER OF ASSETS 31
TOTAL 135,625 NUMBER OF ASSETS 63 Île-de-France CITY ADDRESS SURFACE AREA IN SQM
PARIS 31-33, RUE DE LA FÉDÉRATION 25,563 PARIS 103-107, BD DE LA VILLETTE 16,970 NANTERRE 24-32, BD JULES-MANSART 16,822 PARIS 23, RUE DE L’ÉCHIQUIER 16,019 SAINT-MANDÉ 57-59, RUE DU COMMANDANT-RENÉ-MOUCHOTTE 13,584 PARIS 42-46, AV. PHILIPPE-AUGUSTE 13,221 PARIS 6 -10 PASSAGE SAINT-PIERRE-AMELOT 12,603 PARIS 12 BIS TO 16, RUE CAMPAGNE-PREMIÈRE 12,417 LE CHESNAY 46, BD SAINT-ANTOINE 11,844 PANTIN 231-233, AV. JEAN-LOLIVE 11,804 PARIS 187-189, AV. DAUMESNIL 11,555 SOISY-SOUS-MONTMORENCY 61-63, AV. KELLERMANN 11,089 MEUDON-LA-FORÊT 23-25, AV. MORANE-SAULNIER 10,811 PARIS 23, RUE MÉDÉRIC 10,658
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Office property
CHAMPIGNY-SUR-MARNE 42, RUE DU LIEUTENANT-OHRESSER 10,624 CHEVILLY-LARUE 72-74, AV. DE LA RÉPUBLIQUE 10,570 MASSY 147-149, RUE DE PARIS 10,471 MELUN 3, PLACE A.-CHAUSSY 10,327 CERGY 10-16, RUE FRANCIS-COMBES 9,989 PARIS 18, RUE GUSTAVE-CHARPENTIER 9,907 FONTENAY-SOUS-BOIS 18, AV. DES OLYMPIADES 9,420 PUTEAUX 6, COURS MICHELET 9,335 MEUDON 22-24, AV. DU MARÉCHAL-JUIN 9,198 PARIS 11-15, RUE D’ANJOU 9,184 CHESSY ZAC DU VAL-D’EUROPE 9,151 RUEIL-MALMAISON 92, RUE PIERRE-BROSSOLETTE 8,284 PUTEAUX 4, COURS MICHELET 8,166 LEVALLOIS-PERRET 37 TO 43, RUE PIERRE-BROSSOLETTE 8,156 PARIS 21, RUE JASMIN 8,028 BLANC-MESNIL 21 BIS-25 BIS, RUE SANTOS-DUMONT 8,004 FONTENAY-SOUS-BOIS 12, AV. RABELAIS 7,906 AUBERVILLIERS 6-10, RUE ACHILLE-DOMART 7,861 MONTREUIL 86-94 BIS AND 96, RUE ALEXIS-PESNON 7,770 BOULOGNE-BILLANCOURT 32, AV. PIERRE-GRENIER 7,718 PARIS 57-63, RUE ALBERT 7,511 LEVALLOIS-PERRET 47, RUE BAUDIN – BÂT. A 7,379 ISSY-LES-MOULINEAUX 12, RUE ROUGET-DE-L’ISLE 6,914 SAINT-DENIS 2, RUE JULES-VÉDRINES 6,861 ÉRAGNY LE BAS NOYER-ZAT 6,824 GENNEVILLIERS 15-23, AV.E DES LOTS-COMMUNAUX 6,753 PARIS 91, BD SAINT-MICHEL 6,507 PARIS 10, RUE JOBBE-DUVAL 6,466 COURBEVOIE 1-7,VILLA CHAMBON 5,833 PARIS 15-17, RUE DU FAUBOURG-POISSONNIÈRE 5,789 PARIS 114, RUE MARCADET 5,768 LEVALLOIS-PERRET 10, RUE THIERRY-LE-LURON 5,609 ISSY-LES-MOULINEAUX 1, ROND-POINT VICTOR-HUGO 5,556 IVRY-SUR-SEINE 71, RUE GEORGES-GOSNAT 5,454 PARIS 11, RUE ÉDIMBOURG 5,256 SAINT-OUEN 22, RUE LOUIS-BLANC 5,224 PUTEAUX 40, QUAI DE DION-BOUTON 5,110 VÉLIZY-VILLACOUBLAY 9-15, AV. LOUIS-BRÉGUET 4,846 PARIS 55-57 BIS, AV. DE SAXE 4,728 SAINT-MAUR-DES-FOSSÉS 36, BD RABELAIS 4,619 PARIS 40, BD PORT-ROYAL 4,540 SARCELLES 26-34, RUE MONTFLEURY 4,498 BRÉTIGNY-SUR-ORGE RUE ÉDOUARD-DANAUX 4,490 MEAUX 3, RUE CLÉMENT-ADER 4,478 LEVALLOIS-PERRET 25-27-29, RUE ANATOLE-FRANCE 4,463 PARIS 55-57, RUE JEAN-JACQUES-ROUSSEAU 4,382 PARIS 26, RUE SORBIER 4,245 ISSY-LES-MOULINEAUX 70, RUE JEAN-JACQUES-ROUSSEAU 4,188 NANTERRE 40, RUE JEAN-JACQUES-ROUSSEAU 4,057 BOULOGNE-BILLANCOURT 25 BIS, AV. ANDRÉ-MORIZET 4,038 MONTESSON 136, AV. PAUL-DOUMER 4,028 MEUDON 2, RUE MANSART 3,926 PARIS 29, RUE DES SABLONS 3,615 CHESSY ZAC DU VAL D’EUROPE 3,590 PARIS 37, RUE DU CHERCHE-MIDI 3,565 PARIS 5, RUE LOUIS-CODET 3,550 PARIS 8-12, RUE D’AMSTERDAM – 5-7, RUE DE BUDAPEST 3,305
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PARIS 30, AV. KLÉBER 3,293 PARIS 95-97, RUE BOBILLOT 3,228 ARGENTEUIL 90, RUE DENIS-ROY 3,213 VINCENNES 3, RUE RENON 3,033 YERRES 55, ALLÉE ROYALE 3,029 LONGJUMEAU 24-28, RUE DU DOCTEUR-ROUX 3,009 SAINT-DENIS 19, RUE DES URSULINES 3,008 SAINTE-GENEVIÈVE-DES-BOIS 14, RUE A.-FRANK, LE-PARC-PIERRE 2,981 DEUIL-LA-BARRE 2, RUE DES GRANGES 2,956 PARIS 6, RUE INGÉNIEUR-ROBERT-KELLER 2,925 BURES-SUR-YVETTE 118, ROUTE DE CHARTRES,VILLA DES FLEURS 2,912 TAVERNY 156-158, RUE D’HERBLAY 2,874 CORBEIL-ESSONNES 14, BD AMBROISE-CROIZAT 2,871 SAINT-OUEN-L’AUMÔNE 8, RUE SAINTE-AGNÈS – RUE DE LA POSTE 2,652 PARIS 266, RUE MARCADET 2,587 MAISONS-LAFFITTE 16, RUE JEAN-MERMOZ 2,508 BOIS-D’ARCY 8, RUE DE LA PAIX 2,449 SOISY-SOUS-MONTMORENCY 61-63, AV. KELLERMANN 2,382 RIS-ORANGIS RUE DU CLOS-LANGLET 2,365 CHANTELOUP-LES-VIGNES ROUTE D’ANDRÉSY 2,363 GUYANCOURT 19, ROUTE DE TROUX MARE-AUX-CHEVREUILS 2,355 MAGNY-LE-HONGRE RUE DU PRÉ-DE-BRAY 2,173 MASSY ALLÉE DE MADRID 2,126 LOGNES BD LE MANDINET 2,057
TOTAL SURFACE AREA 628,343 NUMBER OF ASSETS 95
ASSETS HELD FOR SALE IN SQM 184,666 NUMBER OF ASSETS 61
MISCELLANEOUS ASSETS IN SQM 51,395 NUMBER OF ASSETS 43
TOTAL 864,404 NUMBER OF ASSETS 199
Logistics portfolio CITY ADDRESS ASSET TYPE REGIONAL OFFICE SURFACE AREA IN SQM
SAINT-OUEN 69-73, BD VICTOR-HUGO Light industrial Île-de-France 8,205 VILLENEUVE-LA-GARENNE AV. DU VIEUX CHEMIN DE SAINT-DENIS Light industrial Île-de-France 5,211 PARIS 189, RUE D’AUBERVILLIERS Light industrial Paris 14,640 PARIS ZAC ÉVANGILE Light industrial Paris 4,745 PARIS 1-3 BIS, PASSAGE É.-DELAUNAY Light industrial Paris 8,253 PARIS 13, RUE GEORGES-AURIC Light industrial Paris 10,456 PARIS 189, RUE D’AUBERVILLIERS Light industrial Paris 15,997 PARIS 189, RUE D’AUBERVILLIERS Light industrial Paris 26,420 PARIS 1-3 BIS, PASSAGE É.-DELAUNAY Light industrial Paris 4,817 TRÉMERY 5010, RUE MAGINOT A-Class Logistics Eastern France 22,358 COMPANS RUE ANTOINE-DE-SAINT-EXUPÉRY A-Class Logistics Île-de-France 15,410 FLEURY-MÉROGIS RUE CLÉMENT-ADER A-Class Logistics Île-de-France 30,916 BUSSY-SAINT-GEORGES RUE GUTENBERG – AV. DE L’EUROPE A-Class Logistics Île-de-France 17,443 BUSSY-SAINT-GEORGES PARC GUSTAVE-EIFFEL A-Class Logistics Île-de-France 24,939 SAINT-OUEN-L’AUMÔNE 26-28, AV. DU FIEF ET AV. DES BÉTHUNES A-Class Logistics Île-de-France 42,004
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RIS-ORANGIS ZAC DE L’ORME-POMPONNE A-Class Logistics Île-de-France 19,756 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 10,195 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 15,994 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 21,388 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 10,817 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 10,687 SAINT-WITZ ZAC GUEPELLE A-Class Logistics Île-de-France 10,687 SALON-DE-PROVENCE 650, RUE NICOLAS-JOSEPH-CUGNOT A-Class Logistics PACA 26,335 SALON-DE-PROVENCE 650, RUE NICOLAS-JOSEPH-CUGNOT A-Class Logistics PACA 26,549 SAINT-MARTIN-DE-CRAU ZI DU BOIS-DE-LEUZE A-Class Logistics PACA 39,110 GENAS 1/11, CHEMIN DE LA FONDERIE A-Class Logistics Rhône-Alpes 30,182 CORBAS RUE DE LA VANOISE A-Class Logistics Rhône-Alpes 21,458 REVENTIN-VAUGRIS ZONE ARTSENAL A-Class Logistics Rhône-Alpes 32,500 GENNEVILLIERS 97-129, RUE DU MOULIN-DE-CAGE B-Class Logistics Île-de-France 65,099 PANTIN 110 BIS, AV. DU GÉNÉRAL-LECLERC B-Class Logistics Île-de-France 144,120 LIBERCOURT ZI LES BOTIAUX B-Class Logistics North-West 17,603 MORANGIS 1-5, RUE LOUIS-BRAILLE C-Class Logistics Île-de-France 7,440 SAINT-MARTIN-DE-CRAU ZI DU BOIS-DE-LEUZE C-Class Logistics PACA 47,164 CORBAS 4, RUE MARCEL-MÉRIEUX C-Class Logistics Rhône-Alpes 12,538 CORBAS 1, AV. DU 24-AOÛT-1944 C-Class Logistics Rhône-Alpes 13,657 CORBAS 11, AV. DU 24-AOÛT-1944 C-Class Logistics Rhône-Alpes 29,035 ROISSY-EN-FRANCE RUE DE LA BELLE-ÉTOILE Server center Île-de-France 11,795 TRAPPES 6, AV. GEORGES-POLITZER Server center Île-de-France 9,165 CARVIN RUE GAY-LUSSAC Server center North-West 24,848 BOURG-ACHARD ZAC LES VERGERS DE QUICANGROGNE Server center North-West 3,503
TOTAL 913,439
Partnership asset base CITY ADDRESS SURFACE AREA IN SQM
VÉLIZY* 19-21, AV. MORANE-SAULNIER 12,193 VÉLIZY* 2-8, RUE LATÉCOÈRE 41,523 VÉLIZY* 8-12, RUE LATÉCOÈRE 56,000 MEUDON* 16-20, AV. DU MARÉCHAL-JUIN 28,256 BORDEAUX** 5, AV. DES QUARANTE-JOURNAUX 8,340 MARNE-LA-VALLÉE** 35, ALLÉE CLOS-DE-CHARMES 5,379 GRENOBLE** 5, RUE ROLAND-GARROS 1,241 MONTPELLIER** PARC DE POMPIGNAC, RUE DE LA VIEILLE-POSTE 51,485 MONTPELLIER** PARC DE POMPIGNAC, RUE DE LA VIEILLE-POSTE 5,767 SAINT-JEAN-DE-BRAYE** 50/56, AV. PIERRE-MARIE-CURIE 31,938
TOTAL SURFACE AREA 242,122 NUMBER OF ASSETS 10
* Partners include MSREF IV (50%), FSA Property (25%) and Foncière des Régions (25%). ** Partners include MSREF IV (75%) and Foncière des Régions (25%). Foncière des Régions provides the Property and Asset Management services.
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Car parks – Parcs GFR
Operating asset base CITY ADDRESS NUMBER % TYPE ENDS OF SPACES OWNERSHIP
METZ ARSENAL 1,650 100% LEASEHOLD 2062 METZ MAUD’HUY 378 100% AFFERMAGE LEASE 2013 METZ GARE 585 51% CONCESSION 2025 METZ THÉÂTRE 620 100% CONCESSION 2022 METZ RÉPUBLIQUE 430 100% AFFERMAGE LEASE 2007 BORDEAUX BOURSE-JAURÈS 1,620 100% CONCESSION 2042 BORDEAUX SALINIÈRES 424 100% CONCESSION 2042 BORDEAUX TOURNY 999 100% CONCESSION 2042 PARIS TRINITÉ 749 100% FREEHOLD NC PARIS KLÉBER 279 100% FREEHOLD NC PARIS SAINT-GERMAIN 411 100% FREEHOLD NC
Asset base under construction CITY ADDRESS NUMBER % TYPE ENDS SCHEDULED OF SPACES OWNERSHIP SERVICE START
METZ ESPLANADE 619 100% CONCESSION 2034 2007 METZ AMPHITHÉÂTRE 709 100% CONCESSION 2035 2008 BORDEAUX MEUNIER 306 100% CONCESSION 2042 2009 LYON PATHÉ 850 100% FREEHOLD NC 2008
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Residential property – Foncière Développement Logements
Residential property in France by geographical region, representing 3,321 housing units 43% Île-de-France 1% North-West 4% Centre-West 7% South-West 24% PACA 11% Rhône-Alpes 10% Eastern France
Residential property in Germany by geographical region, representing 44,470 housing units 40% Duibsurg 24% Essen 9% Mülheim 6% Oberhausen 6% Düsseldorf 3% Gelsenkirchen 2% Dinslaken 2% Hettingen 2% Remscheid 6% Other
FOR MORE INFORMATION, PLEASE CONSULT: + the 2006 Foncière Développement Logements Annual Report. 54 FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 55
Service sector property – Foncière des Murs
Portfolio value by asset type at 31/12/2006 28% Budget hotels 46% Mid–range hotels – 199 establishments 6% Luxury hotels 15% Healthcare sector – 55 establishments 5% Restaurants – 69 establishments
Portfolio value by geographical region at 31/12/2006 52% French Regions 6% Belgium 27% Île-de-France 15% Paris
FOR MORE INFORMATION, PLEASE CONSULT: + the 2006 Foncière des Murs Annual Report. FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT 55 WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 56
Designed and produced by
Photo credits: © Foncière des Régions’ stock photos – Cover photo: Carré de Suffren development in Paris, France
The cover and inside pages of this report were printed on ISO 9001-certified “Condat Silk” paper. PEFC label. This label certifies that forests are managed according to sustainable management requirements.
56 FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB_couv.qxd 7/06/07 17:50 Page 2
A long-term property investor and operator, the Foncière des Regions Group brings real estate solutions to all its customers.The Group has a particularly attractive, diversified profile with its real estate activities spanning five product lines, including office property, residential property, service-sector property, logistics platforms, and car parks. Foncière des Régions’ business model is based on developing partnerships, expanding its European presence and maintaining a decentralised organisational structure. Active in several European countries, including France, Germany, Belgium, and Italy*, the Foncière des Régions Group benefits from quality human resources and business references. It is ideally suited to the major trends now under way in the global property market, p. 02 Message from the Chairman of the Supervisory Board i.e. the outsourcing of property portfolios, the growth p. 03 Q&A with the Chairman of the Management Board of urban development projects and demand for the long- p. 06 Corporate governance and management bodies term management of diversified real estate portfolios. p. 10 2006, a year of extraordinary growth In France, the Foncière des Régions Group is active in p. 12 A business model that creates value five property sectors through five entities, four of which P. 14 Solid stock market performance are listed property investment companies under France’s SIIC regime (Société d’investissement immobilier cotée): p. 16 Long-term partnerships p. 18 A business model with a track record in creating value… • Foncière des Régions (SIIC): office property; p. 20 … At the core of a European expansion strategy • Foncière Europe Logistique (SIIC adoption expected p. 22 A responsible company in 2007): logistics and light-industrial premises; p. 23 Manifold property know-how • Foncière Développement Logements (SIIC): residential p. 24 A diversified real estate offering property; p. 26 Foncière des Régions • Foncière des Murs (SIIC): service-sector property; p. 30 Foncière Développement Logements p. 34 Foncière des Murs • Parcs GFR: car parks. p. 38 Foncière Europe Logistique In Germany, Foncière Développement Logements owns p. 42 Parcs GFR nearly 45,000 housing units. p. 44 Asset base of the Foncière des Régions Group Lastly, in Italy, the entry of Beni Stabili, a listed property investment company, into Foncière des Régions’ scope of consolidation marks a new step in the Group's European expansion. The Group's strong growth momentum attests to the success of its original business model.With an asset base valued at €10 billion at the end of 2006, and expected to grow to €14 billion by mid-2007, the Foncière des Régions Group ranks among Europe's leading property Notice: information in this report concerning fiscal 2007 investment companies. is subject to the approval of the contribution of Beni Stabili shares by the Annual General Meeting * Beginning May 2007. of 4 May 2007. WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB_couv.qxd 7/06/07 17:50 Page 1
2006
ANNUAL REPORT
Head offices 46, avenue Foch 57000 Metz – France Tel.: + 33 (0)3 87 39 55 00 Fax: + 33 (0)3 87 39 55 01 [email protected]
Foncière des Régions Group in Paris 28, rue Dumont-d’Urville 75116 Paris – France Tel.: + 33 (0)1 58 44 59 00 FONCIÈRE DES RÉGIONS – 2006 ANNUAL REPORT ANNUAL FONCIÈRE DES RÉGIONS – 2006 Fax: + 33 (0)1 58 44 59 49 [email protected]
30, avenue Kléber This is a free English translation of Foncière des Régions’ Registration Document 75208 Paris Cedex 16 – France (Document de Référence), which is comprised of two volumes: Tel.: + 33 (0)1 58 97 50 00 Volume 1, 2006 Annual Report Fax: + 33 (0)1 58 97 50 01 Volume 2, Financial Year 2006 [email protected] The Document de Référence was registered with the Autorité des Marchés Financiers (AMF) on 20 April 2007, under number D. 07-0356, in accordance with Article 212-13 of the AMF’s General www.foncieredesregions.fr Regulations. The Document de Référence may be used in support of a financial transaction, www.foncieredesmurs.fr if it is accompanied by a securities note approved by the Autorité des Marchés Financiers. The original www.fdlogements.fr French-language version of the present report forms an integral part of the Document de Référence. WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef