Developments

A particularly rigorous and value-adding investment strategy.

The creation of real estate development projects is an integral part of ANF Immobilier’s strategy to create value for its shareholders. Close to 57,480m² in new developments on ANF Immobilier’s land reserves or major restructuring projects will be completed over the medium term.

Such developments ensure a pipeline of rental income growth over the coming years. ANF has adopted a particularly rigorous investment strategy with regard to the management of its developments. Accordingly, all developments are on land fully controlled by ANF and in prime locations. Building work only begins once the marketing has been partly or fully completed and financing has been secured.

The financing of the committed projects is therefore completely covered by the Company’s cash flow or by lines of available credit whose principal amounted to €164 million at December 31, 2011.

Complementary to the various renovation programs throughout ANF Immobilier’s portfolio, the program of projects underway is based on major investment in both the construction of new buildings on the Company’s land reserves, but also the total rehabilitation of certain blocks. New development projects consist of developing ANF Immobilier’s land reserves. For all of its new developments, ANF Immobilier has already obtained the necessary permits to proceed with the construction work. The total investment for these projects amounts to €147 million.

Ilot 34, Marseille

Pursuing its active policy of investing in Marseille, ANF Immobilier will develop on its land (Ilot 34) adjacent to the new Ambroise Paré Hospital a program of 26,000m² of residential units, offices, hotels, retirement accommodation, retail outlets, and parking. HQE certification has already been obtained for this project. The official permits connected with this project have all been cleared and the future rental income is estimated at €4.0 million. Work commenced in April 2011 and is due to be complete in the second half of 2013.

Rabatau, Marseille

In this district near the Boulevard du Prado, ANF Immobilier can build an office building offering 3,780m² after 13 months of work. The estimated rental income should be around €0.6 million. For this project as well ANF Immobilier is applying the HQE00000 standard and the building has already obtained HQE certification.

TAT Project, Lyon

Studies are underway with a view to restructuring a property complex of over 20,000m². This could help increase the appeal of Place de la République and attract new brand names. This project also includes reconfiguring Le Printemps department store (lease renewed in 2011). Works will take place over a period of two and a half years and represent €7.5 million in potential rent over time.

Desbief, Marseille

For its plots of land in this sector, ANF Immobilier sought, in collaboration with a development planner, to elaborate a program that would be adapted to the development of this area. The conclusion of this collaboration envisaged a solution that would see the merging of the Ambroise Paré and Paul Desbief hospitals to create a new hospital at the heart of the Euroméditerranée area. ANF Immobilier supported this major initiative by exchanging in 2009 its land on which the new 450-bed Ambroise Paré hospital complex will be built for the land currently occupied by the Desbief hospital, close to Place de la Joliette. Once the Desbief hospital has been vacated, ANF Immobilier will then develop a program of offices and retail premises on the Desbief site with a net floor space of 21,000m². The building permit for this project has already been granted and cleared. Following 30 months of work, the rental income from this project could amount to €5.3 million.

Montolieu, Marseille

ANF Immobilier is conducting advance research into building two residential buildings covering a total area of about 6,700m². of these would be intended for sale and the other for rental to young civil servants in the police force. The building permit application will be filed in summer 2012. Delivery is scheduled for H2 2014. The estimated rental income should be around €0.8 million

Completed projects

ANF Immobilier has already completed and delivered five projects in Marseille

The Mazenod and Joliette projects were completed in 2007, while the Trinquet project was delivered in 2009. During 2010, two projects were completed, the Fauchier and Forbin projects. The Company delivered a 312-space parking lot in 2004.