Review of operations
Introduction
During 2009, the focus on retail increased further. The share of retail in the overall portfolio rose to 94% (2008: 92%) through the disposal of some offices and industrial properties and the addition of a number of dominant centres.
By the end of 2009, the property portfolio spread over the main home markets was: the Netherlands 33% (2008: 33%), France 32% (34%), Italy 18% (19%), Spain 10% (8%) and Turkey 7% (6%).
The changes in the operational property portfolio during the year, including our share in joint ventures in France and Italy and participating interests in Turkey, were as follows:
|
|
Leasable area (x 1,000 m2) |
Annual rent** (€ million) |
Occupancy rate (%) |
Value (€ million) |
|
|
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
| Retail* |
1.468 |
1.355 |
374.3 |
356.5 |
95 |
97 |
5.357 |
5.321 |
| Offices |
117 |
140 |
28.0 |
35.7 |
97 |
95 |
283 |
395 |
| Industrial |
86 |
94 |
4.6 |
5.9 |
79 |
100 |
51 |
61 |
| Total* |
1.671 |
1.589 |
406.9 |
398.1 |
95 |
97 |
5.691 |
5.777 |
| Investments in property under development* |
|
|
|
|
|
|
195 |
262 |
| Total* |
1.671 |
1.589 |
406.9 |
398.1 |
95 |
97 |
5.886 |
6.039 |
* Including assiociates.
** The 2008 rent includes parking income.
About 113,000 m² of GLA was added to the retail portfolio in 2009. Annual rents increased through indexation and other rental increases in the existing portfolio, renovations and net acquisitions and disposals in the retail portfolio. The main acquisitions and openings of new projects were Príncipe Pío in Madrid (Spain) of € 131.6 million (full value, Corio has a 95% interest), acquisition of Tekira in Tekirdağ (Turkey) of € 66.3 million and the increase of the stake in Teraspark in Denizli (Turkey) from 40% to 51% of € 67.1 million (full value, Corio has a 51% interest).
In addition, the theoretical annual rents increased through the completion of the renovations of parts of Middenwaard in Heerhugowaard, ‘t Circus in Almere and De Mare in Alkmaar (the Netherlands), Capteor in Orgeval and Les Portes de Chevreuse in Cognières (France). The IKEA building in Turin was moved from the operational to the development portfolio. In addition to the activities in the home markets described below, Corio also owns land in Sofia (Bulgaria), where a shopping centre with a GLA of about 48,000 m² can be built. In view of the current market conditions, Corio has postponed the construction of this project. The expected investment is therefore not included in the pipeline.
The offices and industrial portfolio shrank by about 30,000 m² of GLA in 2009, through the sale of a number of French offices and industrials. Only three offices with a total GLA of 51,600 m² of strategic importance for the retail portfolio in the Netherlands are still owned by Corio. Corio plans to sell the properties in the French offices and industrial portfolio, with a total GLA of 138,200 m², in the course of the coming years on an individual basis. In addition to the activities in the home markets described below, Corio also has an office property in Böblingen (Germany) with a GLA of 13,700 m². Also this property is considered as being non strategic.
Source: Annual Report 2009, Chapter Review of Operations, page 38 (PDF, 6.362 kB)
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