Property Portfolio ANF’s Marseilles estate, which is mostly situated around the Rue de la République, consists of nearly 180,000 m2 in mixed-use high-quality Haussmann-style buildings. In addition to this unique asset, the company owns property reserves right at the heart of the Euroméditerranée district. Objectives At the heart of the Euroméditerranée project, the authorities have embarked on a huge revitalisation programme in Rue de la République. The whole of the road has been improved from façade to façade, with pavements widened, 200 trees planted and new urban furniture installed. Rue de la République is close to stations on the two metro lines, and service has been improved since July 2007 by the commissioning of the Blancarde - Euroméditerranée Gantes tram line. An 800-space car park opened in 2008 enables Marseilles residents to shop without being concerned about parking. This main artery linking Vieux-Port to the new La Joliette district is a central route between Marseilles’s historic centre and the developing business and tourism sector. ANF’s Marseilles estate consisted of the following buildings at 31 December 2008 :

Since 2005, ANF has been improving the services it provides for its tenants: facade renewals, lobby security and bringing the lifts up to standard. In addition to the extra comfort this offers to occupants, all of these modernisation measures help to increase the rental quality of the buildings, and therefore to raise the value of the property estate.

To return the buildings to their former glory, ANF has decided to invest significant amounts in high-quality façade renovation. Fifty-six buildings (including 5 in 2008) representing 34,000 sq. m of façades (including 3,000 sq. m in 2008) have been renovated since 2005.

The level of security offered by ANF conforms to today’s modern requirements: secure, card-operated entry systems, lobby alarm systems, and video or interphone.

In relation to residential buildings (1,489 apartments), 187 units were rented on the open market in 2008.

A signifi cant vacancy rate in residential properties (25,000 sq. m) has strong potential to create value for ANF. Disruption caused by road works for more than two years has made it diffi cult so far to reduce the vacancy rate. The traditional vacancy rate was reduced by about 2,500 sq. m for the first time in 2008. ANF let out 187 apartments, well in excess of its objectives, which refl ects strong demand for Rue de la République. This trend should continue for 2009 and eventually be stepped up by new initiatives to let out whole buildings.

As at 31 December 2008, 29,857 sq. m of residential units had not been renegotiated. These represent an eventual potential of €2.1 million of new rental income.

ANF had given an undertaking to the authorities to complete 100 social housing units. This undertaking has been completed in full, thereby encouraging the social mix. Services to tenants in these units are comparable to those for apartments rented on the open market.

For the 31,000 sq. m of offices, Rue de la République is helped by the highly attractive Euroméditerranée, and strong demand for surfaces of up to 1,000 sq. m. The effective vacancy rate (excluding work and turnover) is virtually zero. The rent levels are exactly in line with the market average.

As at 31 December 2008, 6,093 sq. m of offi ce space had not been renegotiated. These represent an eventual potential of €0.4 million of new rental income.

The commercial redevelopment of Rue de la République is at the heart of ANF’s strategy in Marseilles. This is an ambitious urban regeneration and renewal project for a street whose retail face had deteriorated substantially.

Retail in Marseille

The effort to market the Vieux-Port – Sadi Carnot portion was completed with great success. Prestigious chains such as H&M, Desigual, Mango, Hylton, Verbaudet, Sephora, Sinéquanone, Celio, Esprit, Puma, Du Pareil Au Même, Planet Jogging and Temps des Cerises have opened on Rue de la République. Crocs and H&M children will open in 2009.

Some of these new leases contain a minimum guaranteed rental income (indexed) and a revenue clause (percentage of sales). Rue de la République’s growing appeal should allow these new chains to reach a suffi ciently high level of sales for the revenue clause to be applicable.

With the commercial success of the fi rst section of Rue de la République behind it, ANF is launching further retail developments.

As at 31 December 2008, 16,494 sq. m of retail space had not been renegotiated. This represents an eventual potential of €3.2 million of new rental income.

Rising occupancy rates