Icade, an integrated real estate company and a significant player in Greater Paris and major French cities
Icade owns a commercial property portfolio of €8.5bn (as of 12/31/2017) made up largely of offices and business parks in the Paris region.
Two years after announcing our strategic plan, Icade is delivering on its growth and performance ambitions:
- Continued positive momentum across our three business lines: Commercial Property Investment, Healthcare Property Investment and Property Development.
- Stronger synergies between Property Investment and Property Development
The expected synergies became a reality in 2017, with a potential revenue of €370 million in total, including primarily:
- A framework agreement signed with Latécoère regarding the company’s historic site in Toulouse. The development programme provides for the completion of Latécoère’s new headquarters in 2019 (an off-plan lease agreement has already been signed for a floor area of over 11,000 sq.m), where Icade’s Commercial Property Investment Division will be the investor. The development will total about 70,000 sq.m. The Property Development Division will build the housing section of the project (831 units totalling 55,200 sq.m);
- Development by the Property Development Division of about 1,300 housing units (80,000 sq.m) on land owned by the Commercial Property Investment;
Focus on Property Investment Divisions
The Commercial Property Investment Division’s portfolio consists primarily of office assets located in the Paris region but also, since 2017, of office buildings in major cities outside the Paris region. The whole portfolio is valued at €8.5 billion on a proportionate consolidation basis (€8.8 billion on a full consolidation basis). It can be broken down between office buildings valued at €4.7 billion and business parks (also mainly composed of office assets) valued at €3.6 billion. It also includes a portfolio of hotels as a result of acquiring ANF Immobilier and a portfolio of residual assets, made up of warehouses and housing units (worth €183 million as of December 31, 2017, i.e. 2.1% of the Commercial Property Investment Division’s portfolio).
Geographical Portfolio Distribution (%) – Offices and Business Parks December 31st, 2017
*€8.3 bn based on proportionate consolidation basis
Total investments over the period amounted to €1,048.9 million . This amount breaks down as follows according to the recommendations of EPRA:
- Asset acquisitions that amounted to €741.7 million over the period
- Off-plan acquisitions for a total of €114.7 million, which included the following three projects: Go Spring in Nanterre (Hauts-de-Seine) Gambetta (20th district of Paris) and EKO Active (Marseille).
- New builds/extensions and redevelopments, other capex (renovation costs) for a total of €192.4
The value of asset disposals carried out in 2017 was €256.0 million. Main transaction is the sale of the three office buildings (Garonne, Rhône and Seine) located in Villejuif for a total of €226.0 million;
As of December 31, 2017, the financial occupancy rate of the Commercial Property Investment Division stood at 92.5%, up 1.4 pp.