Portfolio and valuation
The value of the portfolio of Corio Spain increased to € 575.9 million at the end of 2009 from € 482.1 million at year-end 2008. This increase was mainly thanks to the acquisition of Príncipe Pío in June, which added € 132 million (full value, Corio acquired 95% of the shares) to the operational portfolio. Príncipe Pío is a shopping centre of 28,700m² GLA, located in the centre of Madrid, on top of a busy train and metro station. A total of € 2.3 million of investments in the portfolio and pipeline were made. The higher portfolio value was partially offset by negative revaluations of € 40.1 million, a reduction of 6.5% on the book value at year end 2009 before revaluation. Total decreases in values amounted to € 58.3 million. The increase in value totalling € 18.3 million, was fully attributable to the revaluation of Príncipe Pío.
In general initial yields rose 70 basis points on average, pushing the net theoretical yield of the Spanish portfolio from 6.5% at year end 2008 to 7.2% at year end 2009.
No more yield shift took place in the second half year, indicating that the market is stabilising. A decrease in market rents also affected the valuations negatively. The rent impact on valuations was 3.0% negative.
Source: Annual Report 2009, Chapter Review of Operations, page 63 (PDF, 6.362 kB)
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