The B&B hotel properties acquired in October 2007 were appraised
at €466 million at 31 December 2008. This valuation results from
assessing the rental income received after the 1 November 2008
indexation was applied (+5.62%, or €1.6 million on an annual basis)
offset by an increase in the capitalisation rates of some 50 bp
applied by the appraisers.
ANF’s property estate in the city centres of Lyons and Marseilles
was assessed at €1,077 million at 31 December 2008, a 16%
increase in one year. The properties’ value rose by €264 million
owing to the revaluation of the leases, notably commercial, and to
the development of the projects. This increase is in line with the
objectives defi ned in 2007.
In the current context, the appraisers raised the capitalisation rates
applied on the buildings. That equates to a €113 million decrease
in the appraised value of the total property estate, including the city
centre properties and B&B hotels. This lower valuation was more
than fully offset by the creation of value on the properties.
The values by sq. m of the buildings in Lyons and Marseilles,
which appear in the following tables, show the prudence of these
appraisals.
ANF’s consolidated net indebtedness totalled €373 million as at
31 December 2008. The Loan to Value ratio thus comes to 24%.
The Net Asset Value was estimated to be €44.32 per share
at 31 December 2008 as against €43.54 (restated amount) at
31 December 2007.
The creation of value due to the work performed by ANF will
continue owing to the renegotiation of those leases whose rental
income is well below the market, the remaining renovation work
to be done and the upgrades yet to be completed. Nevertheless,
current uncertainties over the way the market is changing could
result in another increase in the capitalisation rates. This would
affect value creation.
