Fonciere des Regions

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Foncière des Régions
Type public
Traded as EuronextFDR
Industry Commercial Real Estate
Parking lot
Residential Real Estate
Founded 1963
Headquarters Paris, France
Key people Christophe Kullmann,ceo,chair
Charles Ruggieri,sv chair
Revenue €789.6 million (2010 revenue)Increase3.7%[1]
Operating income Increase€1288.1 million[1] (group)
Net income Increase€627.2 (2010 over 2009 loss)[1]
Total assets €14.7 billionIncrease5.4%[1]
Total equity €6.0277 billionIncrease25.4%[1]
Employees 809[2]
Divisions Foncière Développement Logements Foncière des Murs Foncière Europe Logistique
Website www.en.foncieredesregions.fr

Foncière des Régions (pronounced: [fɔ̃.sjɛʁ dɛ ʁe.ʒjɔ̃]) is a holding company of real estate investment (REIT) companies that own residential and commercial properties in 8 countries (mostly Europe). Its business comes from the rental and leasing of properties (including hotels and car lots) over 70% of which is office space in France and Italy (in 2009 vacancy rates were at 5.3% in France, in other major markets like Rome, Italy rental income was lower because office space use was halved). Its biggest clients are major companies the largest of which is France Telecom which rented half of Fonciere's office space in France (about 1 million m2 (though its share of rental income was 51% in 2009 compared to 60% in 2008). Other major customers are Telecom Italia and Electricite de France and IBM.[3] The company has a 15% interest in France's biggest business park developer, Altarea SCA.[4] Most properties are under its control however there are also about 60 properties that it has a minor stake in (interests in them range from 25 to 38 percent).[5] Widely recognized properties include one of France's tallest skyscrapers Tour Gan (also known as CB21) and Carré Suffren in Paris.[6][7]

Other assets include parking lots (Parcs GFR), retirement homes, warehouses (Fonciere Europe Logistique SCA, Fonciere Developpement Logements SA) hotels, medical facilities, and business parks (15% of France's largest developer Altarea SA).

  • In August 2010 in a joint venture with France's largest bank Credit Agricole, it acquired 48 European hotels from hospitality company Accor. The deal was worth 367 million euro.[8]
  • After acquiring 35% of Italian real estate company Beni Stabili (public on the Milan stock exchange since 1999) from Italian company Delfin (Delfin and Batipart are Fonciere's largest shareholders) it purchased the rest of it in 2007. It was Fonciere's single largest investment in Italy bringing its asset portfolio there to €4 billion.[9][10][11]

Altogether the company had a market value of between €3.5 and €3.9 billion in 2010.[4][12]

History[edit]

Tour Gan also known as CB21
Paris, France

Fonciere des Regions was created in 1963 as Garages Souterrains de Metz an operator of underground garages/parking lots. Most growth happened in the 21st century beginning with key acquisitions and leaseback agreements with EDF, AXA, AGF between 2000 and 2004. In 2000 it acquired housing developer Sovakle.[13][14] In 2004 the division dealing with hotels, Foncière des Murs was formed.

Fonciere des Regions's largest shareholder is currently Italian Delfin (the holding company of Italian billionaire Leonardo Del Vecchio) with a nearly 30% stake.[15]

Operations[edit]

Through subsidiares Fonciere operates in France, Italy, UK, Luxembourg (Batisica, FDR Luxand and 67% ownership of CCP Duisberg and GSS III Partners), Germany (EM), Belgium (NC), USA (73% of Red Sail Real Estate Holding USA Inc. which is based in LA, NYC, and Chicago) and Portugal.

In 2010 rental income (€789.6 million consolidated up on the year due to French office acquisitions, of which €521.3 million represented the group share which was down slightly because of a lowered interest in Beni Stabili) came mostly from the offices business segment (totalled 79% 54% in France and 25% in Italy) but also from logistics operations (11%) and the service sector (10%). Total revenues increased only in the service sector (4.4% due to 7% higher Accor income) and Italian offices sector (up 4.3%). Vancancies affected results from the offices business in France.[1]

Divisions (these three are separate publicly traded companies) in order of size are

Foncière Développement Logements controls all of the company's French (in Ile-de-France) and German (Bavaria, North Rhine-Westphalia, Lower Saxony) residential properties which include apartments and condominiums. SCI Marceau and Triname and Garonor France III are among numerous subsidiaries managed through the division.

Foncière des Murs (25% interest) is a SIIC that provides hospitality services in addition to its function as landlord of hotels and restaurants.[16]

Foncière Europe Logistique is the subsidiary that controls assets relating to Logistics in France and Germany.

References[edit]

  1. ^ a b c d e f "2010 Annual Results". 2011-02-22. 
  2. ^ "Fonciere des Regions". Wrightreports. 2010. 
  3. ^ "Gecina". 2010-05-12. 
  4. ^ a b "Fonciere Des Regions Reports Profit". Bloomberg. 2010-07-27. 
  5. ^ "Fonciere de Regions 2009 Annual Report". 2010-04-16. 
  6. ^ "The Land of the Regions will renovate the tower CB21 La Defense". 2009-01-16. 
  7. ^ "Fonciere des Regions Metz France". emporis. Retrieved 2010-09-22. 
  8. ^ "Accor Operating Profit Growth Forecast". Bloomberg. 2010-08-26. 
  9. ^ "Beni Stabili to join Foncière des Regions group (IT/FR)". 2007-02-20. 
  10. ^ "Fonciere des Regions to buy 35% of Beni Stabili.". 2007-03-05. 
  11. ^ "Delfin, Batipart dissolve shareholder pact in France's FdR". 2010-04-07. 
  12. ^ "Fonciere des Regions Rental Income". Reuters. 2010-02-22. 
  13. ^ 2005 Global Reports LLC Fonciere history
  14. ^ Birth of Land Development Homes Dec 2005
  15. ^ http://www.propertyeu.info/newsletter/default.asp?id=14635
  16. ^ Fonciere des Regions Hoovers