Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
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 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 FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT 1 WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 2 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. 2 FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 3 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. FONCIÈRE DES RÉGIONS I 2006 ANNUAL REPORT 3 WorldReginfo - ce59a6ef-7bbe-4275-ae6c-a94c24dc03ef 0704519_FDR_RA GB.qxd 7/06/07 18:23 Page 4 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.