Annual Report 2011-2012

Portfolio France

Portfolio development

As it has been planned since 2009, the renovation of the “Newtime” (Jatte 1) and “Imagine” (Jatte 3) buildings is now underway and will continue until 2014. During this period the annual rental income of the French portfolio will be halved to EUR 10 million. Like the investments already carried out in the Swiss portfolio (Holbeinstrasse in Zurich, Carl Vogt in Geneva), these “green” renovations, which are costing around EUR 70 million, are designed to promote optimum re-letting of these assets while also contributing to a substantial increase in their market value.

A large tenant in Lyon went bankrupt at the end of 2011. This was the reason for the increase in the vacancy rate of the French portfolio to 13.5% as of 31 March 2012. Since then a number of large French companies have already shown an interest in the vacant space.

Market development

The French economy was also hit by the euro-zone debt crisis in 2011. It is likely that this sluggish economic environment will continue during the coming year. As a result, tenants remain cautious and rent levels remain low.

Despite this challenging environment, the French real estate market remained active in 2011. The net take up was 2.2 million m² in the Paris region, a 7% increase on 2010. Moreover, investment volumes reached over EUR 17 billion, an increase of 30% on the previous year. As in recent years investors are focusing on core type properties, while tenants are looking for brand new or renovated office buildings and are paying more and more attention to their energy efficiency.

Portfolio overview

Portfolio overview
CHF/EUR in million 31.3.2012 31.3.2011
     
Market value in CHF 382.7 405.1
Market value in EUR 317.8 311.5
Annual rental income in CHF * 12.3 29.5
Annual rental income in EUR * 10.2 22.7
Vacancy rate 13.5% 6.2%

* without renovation projects

Major tenants

Major tenants
Tenant Sector   % share of annual rental income
    Portfolio France Total
       
Faurecia, Paris Automotive industry 33.5% 6.5%
Europ Assistance, Paris-Gennevilliers Insurance 18.6% 3.6%
Ville de Marseille, Marseille Government/city office 14.0% 2.7%
Lexmark, Suresnes Printing industry 8.9% 1.7%
National Instruments, Nanterre Automotive industry 4.0% 0.8%
Total   79.0% 15.3%

Lease contract analysis EUR in million

Lease contract analysis
EUR in million
Prop. No. City, address Property certificates Züblin EMS Date of acquisition Year of construction/ renovation Annual rental income CHF 1000 Vacancy (CHF) % Ownership Discount rate % Plot size m2 Office m2 Retail m2 Trade/ logistics m2 Other space m2 Total usable space m2 Vacancy m2 Vacancy (m2) % No. of parking spaces
10 Suresnes, Paris, 12–18 rue Gustave Flourens   28.3.2007 2006 1 100 0.0 6.75 1 173 2 522 19 2 541 0.0 68
11 Gennevilliers, Paris, 1 pr. de la Bonnette   4.8.2006 1991 2 289 0.0 6.50 1 885 8 093 8 093 0.0 190
12 Nanterres, Paris, 6–16 Rue Hennape   5.10.2007 2001 4 628 5.3 6.25 7 892 11 162   11 162 754 6.8 296
  Total region of Paris         8 017 3.1     10 950 21 777 19 21 796 754 3.5 554
                                     
  Region of Lyon                                  
13 Lyon, 17–23 av. Pompidou   14.1.2008 1993 2 572 39.3 6.40 6 143 15 533 56 15 589 5 923 38.0 435
                                     
  Region of Marseille                                  
14 Marseille, 36–40 rue Roger Salengro   30.1.2008 2007 1 729 0.0 6.75 2 087 4 735 1 100 5 835 0.0 67
                                     
  Total French portfolio         12 318 13.5     19 180 42 045 1 175 43 220 6 677 15.4 1 056
                                     
  Renovationt projects                                  
15 Neuilly-sur-Seine, Paris, 52 Boulevard du Parc “Newtime” (Jatte 1) Breeam, HQE in Planning 1.7.2002 1971 100.0 5 800 12 480 4 844 17 324 17 324 100.0 408
16 Neuilly-sur-Seine, Paris, 20–26 Boulevard du Parc “Imagine” (Jatte 3) Breeam, HQE in Planning 19.3.2007 1978 913 78.6 6.50 4 546 7 897 888 8 785 5 976 68.0 240
17 Neuilly-sur-Seine,Paris, 28–34 Boulevard du Parc (Jatte 2)   1.7.2002 1976 100.0 6.50 3 223 6 345 700 7 045 7045 100.0 149

Ownership of 100%

Condominium ownership

Leasehold

M Minergie

DGNB Deutsche Gesellschaft für Nachhaltiges Bauen

HQE Haute qualité environnementale

BREEAM BRE environmental assessment method

Energie-Monitoring-Systems (EMS) existing

Energie-Monitoring-Systems (EMS) in planning

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Annual Report 2011-2012

Annual Report 2011-2012 (8.16 MB)