Report and accounts 2001

Transcription

Profile
Leading player
With an investment portfolio of € 3.5 billion, Corio is one of the largest
quoted property investment companies in Europe with a primary focus
on retail. Corio’s name (which translates from Latin into ‘crossroads’)
reflects the company’s aim of being a meeting point for retailers and
their customers, by managing shopping centres with a long-term view.
Clear strategy
Corio aims at having at least 50% of the portfolio in Europe outside
The Netherlands, with a retail share of at least 75%. Depending on the
real estate cycles, Corio’s selective investments in the office sector will
represent up to 25% of the value of the total portfolio.
New addresses as from July 1, 2002
Corio N.V.
Jacobsweerd, St. Jacobsstraat 200, 3511 BT Utrecht
P.O. Box 8243, 3503 RE Utrecht,The Netherlands
T +31 30 282 93 00, F +31 30 233 35 78
E [email protected], I www.corio-eu.com
Corio Nederland Retail
T +31 30 234 64 64, F +31 30 233 35 78
Corio Nederland Kantoren
T +31 282 93 00, F +31 30 233 35 78
Active center management
Our heart is in retail properties where people and business come together.
We target the retailers and their customers in our drive to create value
through pro-active management.
Local management
Corio is actively involved in many stages of the investment process, via its
professional and dedicated local organisations in The Netherlands
(Utrecht), France (Paris), Italy (Milan) and Spain (Madrid).
Liquidity
Corio’s shares are actively quoted on Euronext Amsterdam. Its market
capitalisation stands at € 1.8 billion, with a free float of 65% on average.
It takes approximately four days to acquire a € 10 million holding in
Corio.This makes Corio one of the most liquid property investment
companies in Europe.
Risk diversification
Corio has over 5,000 tenants in 250 properties in The Netherlands,
France, Italy and Spain, providing a secure income stream. Corio’s focus
on retail property and geographical spread reduces sensitivity to cyclical
movements.
Dividend
It is Corio’s long-term objective to ensure a pay-out ratio of 80%,
which results in a high dividend yield.
Tax-efficient vehicle
Corio qualifies as a Fiscal Investment Institution (fiscale beleggingsinstelling – ‘FBI’) under Dutch law.This means that it pays no Dutch
corporate income tax.
Contents
3 Shareholders’ information
4 Financial highlights
5 Business highlights 2001
7 Report of the Management Board
17 Corporate Governance
20 Report of the Supervisory Board
21 Review of Operations 2001
41 Annual Accounts
55 Other information
56 Organisation and addresses
57 Five-year review
58 Property portfolio
2
Shareholders’ information
Financial calendar 2002
The General Meeting
of Shareholders will be
held on 24 April 2002
at 15:30 in the Hilton
Amsterdam Hotel,
Apollolaan 138,
Amsterdam.
Ex-dividend quotation
26 April
Closing date for exercise
of dividend option
16 May
Determination of
stock dividend ratio
17 May
Dividend payable
23 May
Publication of first
three months’ results
16 May
Publication of
half-year results
30 August
Publication of first
nine months’ results
15 November
I Share price / Net asset value
II Dividend per share
III Corio vs EPRA-indices 2001
(see inside front cover)
Dividend
Investor Relations
The Management Board proposes to declare
a dividend of € 2.28 per share for 2001.The
dividend will be payable, at the shareholder’s
option, entirely in cash or € 1.82 (80%) in cash
and € 0.46 (20%) in shares charged to the share
premium reserve, at a ratio to be determined on
17 May 2002 after close of trading on Euronext
Amsterdam on the basis of the average price
of that day.The value of the stock dividend will
be at least equal to that of the cash dividend.
Shareholders will be asked to choose between
cash or the combination of cash and stock
before the ratio is announced.There will be
no trade in dividend rights on Euronext
Amsterdam.The dividend will be payable on
23 May 2002 and the shares will be distributed
as from that date.
Investor Relations will be pleased to answer
questions and supply copies of the original
Annual Report in English or Dutch, together
with a number of other publications.The
Annual Reports and other investor relations
information can be viewed at, or downloaded
from, the Investor Relations section of the
Corio website: www.corio-eu.com.
Key figures per share
I II III
(x 1 €)
2001 2000
Highest
Lowest
Year-end
29.50 28.10 29.35 27.00 25.28
21.50 24.00 24.50 23.05 20.92
24.90 27.00 26.80 27.00 23.28
Dividend
2.28
2.16
1999 1998 1997
2.05
1.95
1.70
At year-end 2001 the total number of issued
shares was 66,854,742 of which 1,000,000
has been repurchased by the company. As the
Stichting Pensioenfonds ABP holds 22,892,000
shares with an agreed lock-up period which
expires at the end of 2003, Corio has a free float
of approximately 65%.
Euronext
Corio’s shares are quoted on Euronext
Amsterdam. As from 29 October 2001, Euronext
Amsterdam changed its trading system. As a
consequence of this change, Corio appointed
ABN AMRO, Fortis Bank and Dexia Securities
to act for Corio as liquidity providers.
3
Financial highlights
3,500
3,000
Geographical
distribution
(x € million)
2,500
3,500
Distribution
by category
(x € million)
3,000
2,500
2,000
The Netherlands
France
Italy
Spain
Others
1,500
2,000
Retail
Offices
1,500
1,000
1,000
500
0
500
0
’97 ’98 ’99 ’00 ’01
’97 ’98 ’99 ’00 ’01
(x € million)
2000
2001
Direct investment result
Indirect investment result
99.9
100.5
148.4
101.3
Net investment result
200.4
249.7
Figures per share (x € 1)
2.16
2.18
2.28
1.56
3.84
4.34
Dividend
- in cash, or
- in cash plus
in shares charged to the share premium reserve
2.28
1.82
*
2.16
8.33%
27.25
25.74
65.9
65.2
63.9
46.2
Retail
Offices*
Shareholders’ equity after profit appropriation
Shares issued (x million) **
- year-end
- average
* ratio to be determined on 17 May 2002
** net of repurchased own shares
Portfolio composition as at year-end 2001 (x € million)
Total
The Netherlands
France
Italy
Spain
Other
1,985
836
349
281
19
57%
24%
10%
8%
1%
1,223
537
349
224
-
35%
16%
10%
6%
-
762
299
57
19
22%
8%
2%
1%
Total
3,470
100%
2,333
67%
1,137
33%
*
4
offices also includes industrial and residential assets
Business highlights 2001
February
Two shopping centres in Cherbourg and Dijon (France) are purchased for a total of € 30 million.
The Bethesda Office Center property in Bethesda, Maryland, US, is sold for € 34 million.
April
It is formally announced that the company is operating under the new name of Corio.
Mr G. ter Veer retires from the company’s Supervisory Board and Mr J.A. de Kreij is appointed.
May
The purchase of a portfolio of retail properties in France for a total of € 27 million is announced.
Approximately 60% of the 75,000 m2 Villa ArenA home-furnishing shopping centre in Amsterdam
is acquired for € 65 million.
June
Mr J.P. van Leeuwen takes over as Corio’s Finance Director.
July
Office properties in Amsterdam and Rotterdam and a multifunctional complex in Groningen
(The Netherlands) are sold for a total of € 34 million.
August
The sale of the L’Enfant Plaza office building in Washington D.C. for € 61 million represents
Corio’s withdrawal from the US market.
September
A shopping centre located in the heart of Bordeaux (France) is purchased for € 46 million.
October
Office properties in Den Haag (The Netherlands) and Lyon (France) are sold for € 29 million.
November
The Trema portfolio, including the local management organisations, is acquired for € 595 million,
and consists of ten high quality shopping centres in France, Italy and Spain.
December
It was announced that residential property to the value of € 86 million and individual retail
properties to the value of € 23 million had been sold in The Netherlands in 2001.
5
From left to right:
PaulVismans,
ThomWernink and
John van Leeuwen
Management Board
Th.W. Wernink (1945), Chairman
Nationality: Dutch. Former position: Chairman of Management Board of Vaste Waarden Nederland
B.V.. Supervisory directorships: Veer Palthe Voûte and RIVA.
P.A.R.J.Vismans (1955)
Nationality: Dutch. Former positions: Director, Raad voor Onroerende Zaken and CEO,Winkel
Beleggingen Nederland.
J.P. van Leeuwen (1954)
Nationality: Dutch. Former positions: various financial positions for the Royal Dutch/Shell Group
and Director Corporate Finance & Fiscal Affairs of Rodamco Europe.
6
Report of the Management Board
IV Result in perspective
Our strong financial results in 2001 reflect
considerable business achievements in the
implementation of our strategy.We are
delivering what we promised. Corio now ranks
as one of Europe’s leading quoted property
companies with a primary focus on retail assets.
It has been a challenging year, and many extra
demands have been placed upon our staff.They
are committed to adding shareholder value and
to meeting the needs of our customers and
other stakeholders.
Acquisition of Trema portfolio
• The acquisition of the Trema portfolio
including the local management organisations
in November 2001 was the largest
open-market deal of its kind in Europe.The
Trema portfolio was acquired for € 595
million and consists of ten high quality
shopping centres in France, Italy and Spain.
• The transaction resulted in a significant
increase in the scale of operations. Corio’s
French and Spanish retail portfolios have now
reached the critical mass to operate on a cost
effective basis.
• The transaction further enabled Corio to add
Italy as another home market to its international portfolio.The experienced local
management provides an excellent platform
for future growth.
Other key events
• The sale of the L’Enfant Plaza office building
in Washington D.C. for € 61 million represents
Corio’s withdrawal from the US market.
All the company’s real estate investments are
now located in Europe and one of its major
strategic aims has been achieved.
• Implementation of the company’s center
management concept within Corio Nederland
Retail began (also refer page 25).
Favourable results
IV
The year 2001 has been a period of significant
change and growth.The size of Corio’s portfolio
increased by 28% from € 2,705 million to
€ 3,470 million.The direct investment result
increased by 49% from € 99.9 million to
€ 148.4 million.The indirect investment result
amounts to € 101.3 million and is largely the
result of a 4.1% revaluation of the portfolio,
which is considered to be substantial under the
prevailing economic conditions.
• The direct investment result per share
increased by 5.6% from € 2.16 in 2000 to
€ 2.28 in 2001.
• The indirect investment result per share
showed a return of € 1.56, or an increase of
6%, on the net asset value of € 25.74 per share
as at year-end 2000.
• The total performance per share amounted to
€ 3.84, or a return of 14.9% as measured
against the net asset value of € 25.74 per share
as at year-end 2000.
• For the year 2001 a dividend of € 2.28 per
share is proposed.This is an increase of 5.6%
over the year 2000.
Objectives and strategy
Corio’s mission is the creation of a leading
property investment company in Europe with
a primary focus on retail.
The company will pursue this objective by
strengthening and expanding its European real
estate portfolio.The focus will be on the retail
sector with selective investments in both the
office and industrial sectors.The company’s
position is that expansion and growth are only
justified when it is profitable and enhances
shareholder value.
7
In order to achieve its objective, Corio needs
to expand by means of corporate acquisitions
as well as acquisitions of individual assets, in
addition to organic growth.The opportunities
for this are presented in particular by extending
the company’s pan-European presence.The
company aims to have at least 75% of its
portfolio invested in retail and to have at least
50% of its portfolio invested outside The
Netherlands.
• Each investment must make a positive
contribution to the direct investment result.
Corio is actively looking for investment
opportunities with strong reversionary
rent or redevelopment potential. Existing
properties are regularly reviewed on the basis
of a hold/sell analysis.
• Corio believes that its growth strategy will
increase shareholder value, as the company will
have greater access to deal flow, lower cost of
capital, increased liquidity on the stock market
and a broader shareholder base.
Market prospects
Economic growth in the European Union (EU)
is expected to be higher than in the US and
Japan.The level of growth will be substantially
lower than in 2000, but at about the same level
as in 2001. An important difference however
will be that the economy deteriorated
throughout last year, whereas economic activity
is expected to improve in 2002.
Given the low vacancy rates in most European
markets, retail rents will plateau or continue to
rise in 2002. However the rate of this growth
• Corio applies its specific expertise in
will be lower than in recent years due to an
acquisition, disposal, center management,
overall slowdown in retailer demand.The
letting and marketing to add value and to
slowing economy and the increasingly
respond to new developments in the market.
competitive environment will persuade many
The company actively targets the retailer and
retailers to review their strategy and consolidate
their customers in order to create value.
their current positions. Although consumer
spending will slow temporarily, as a result of the
• The company has a policy of central
economic uncertainty and deteriorating labour
investment decision-making and risk
market conditions, the affluence of the
consumer base will continue to grow. As
management, while it benefits from strong
economic conditions are expected to begin to
local organisations that have the critical mass
to operate efficiently and that are close to their improve in the second half of the year, demand
from an increasing number of international
tenants, assets, deal flow and markets.
retailers for space in prime locations and in
good shopping centres will remain high.The
• Corio’s emphasis on retail property, the
future outlook for retail and leisure projects in
geographical spread of its portfolio in Europe
and its dynamic portfolio management reduce Europe remains positive, providing they are in
good locations, and that their anchor tenants,
sensitivity to cyclical movements. Corio now
has over 5,000 tenants across 250 properties in tenant mix and concept are in line with
The Netherlands, France, Italy and Spain.The evolving consumer patterns.The position of
company believes that this provides for a high smaller, less adequate shopping centres in
peripheral locations is being threatened.
level of diversification by source of income
and individual tenants.
In general, rental growth in European office
8
markets will continue to slow in 2002, and
in some markets the rents will be under
downward pressure.The slowdown in demand
for office space is coinciding with an expansion
in the supply of new office space.This new
supply occurs in response to several years of an
acute imbalance of office demand and supply
across Europe, while oversupply in most markets
has been averted by a large proportion of this
new supply having been pre-let. However the
major issue this year will be the pre-let space
returning to the market, which will compete
with the speculative new space. Many
companies, especially in the technology, media
and telecommunications sector, are facing lower
revenues and profits, and as a consequence are
revising their expansion plans or adopting a
‘wait and see’ position. An increase in the
disparity between rents in primary and
secondary projects and locations is anticipated.
Office buildings in city centres are expected
to experience less pressure on rents, as supply
will remain tight and tenants will continue to
demand more traditional locations.
Rents in the industrial market will increase
further, although at a considerably lower rate
than last year since the demand for space
remains high. Speculative development is in
short supply in some markets, as a result of the
limited availability of land at prices justifying
new construction. Initial yields in the industrial
market will remain stable in 2002.
pan-European expansion during 2002, with a
further increase in the share of its portfolio
outside The Netherlands. Following the Trema
transaction, the company will be concentrating
on consolidation, integration and performance
improvements in 2002, continuing the process of
in-sourcing the management of its shopping
centres.
Achievements in 2001
The year under review was the first year in
Corio’s history in which the focus on retail
property had its full impact on the company’s
operations.
• The acquisition of the Trema portfolio,
consisting of ten high quality shopping centres
in France, Italy and Spain and one office
building in Spain, represented a significant step
in Corio’s strategy to expand in Europe with
its focus on retail.With a portfolio of € 3.5
billion, Corio is now a large and attractive
player in the pan-European commercial retail
market.The retail sector is characterised by
consistent growth in earnings, low risk, and
resistance to the negative effects of cyclical
business trends. In terms of the total portfolio,
the share in retail increased from 53 to 67%
and the share of property invested outside
The Netherlands increased from 30 to 43%.
Through the acquisition, Corio added Italy
as another home market which provides an
excellent platform for further growth within
its international portfolio.
Business outlook
In spite of the world economic slowdown, the
outlook for Corio’s core property markets
remains positive.The company expects its
portfolio to show solid growth in rental income
over the next few years, although it forecasts the
average vacancy rate to show some increase.
Corio will continue to follow its strategy of
• The implementation of the company’s center
management concept within the portfolio of
Corio Nederland Retail began in 2001.The
management of the first five larger shopping
centres, including Hoog Catharijne in Utrecht,
and eight smaller shopping centres was
in-sourced.The new center management
teams have already improved the market
9
position and reduced the operational risks
of these centres. Another three larger centres
and eight more smaller centres will follow
in 2002, with the in-sourcing process in
The Netherlands scheduled to be completed
by the end of 2003.The experienced local
management joining Corio through the Trema
transaction will also enable the company to
extend the implementation of its center
management concept to France, Italy and
Spain.
Personnel and Organisation
The company has been operating under the
new name of Corio and has created a new
corporate identity.
• To ensure adequate transparency for business
purposes, the retail and office portfolios and
the local management organisations in The
Netherlands were transferred on 31 December
2001 to two newly incorporated subsidiaries:
Corio Nederland Retail and Corio Nederland
Kantoren. From July 2002, the holding
company and the local management
organisations in The Netherlands will operate
from a shared office in the centre of Utrecht.
This will complete the integration of the
former VIB and WBN organisations in The
Netherlands.
• In addition to the Trema properties, Corio
acquired some other major projects
throughout Europe in 2001.The most
important of these were the Amsterdam
Villa ArenA project in The Netherlands
(€ 65 million), the highly reversionary SAGEP
portfolio (€ 27 million) in the Paris area and
• The integration of the Trema teams in France
the Alsace, France, and the St Catherine
and Spain within Corio’s local management
project in central Bordeaux (€ 46 million) in
organisations in those countries is running
France. Substantial value was added in some
smoothly.The former Trema organisation in
major shopping centre redevelopment projects,
Italy is now operating as Corio’s Italian
notably Alexandrium I in Rotterdam,The
management organisation.The acquisition has
Netherlands, and Grand’Place in Grenoble,
had no adverse effects on employment in the
France.
three home markets involved.
• Two-thirds of the residential portfolio of
• The progressive implementation of the center
Corio Nederland Retail was sold
(€ 86 million).
management concept in The Netherlands and
the Trema transaction have increased the
• The portfolios of all four Corio home markets
number of employees, in full-time equivalent
performed very well, with low vacancy rates,
terms, from 143 at the end of 2000 to 227 at
increases in gross rents on average, and
the end of the year under review.
significant revaluations in The Netherlands
and France.The Spanish, the French and in
• A major challenge for the coming year is the
particular the Italian portfolios possess the
implementation and integration of a shared
highest reversionary potential.Whereas the
property information system, which will
French portfolio profited most from
enable the company to create competitive
re-commercialisation efforts, the Spanish and
advantage.
Dutch portfolios benefited most directly from
a high indexation. All portfolios profited from • A new framework for business planning and
active re-letting.
budgeting has been introduced, establishing
10
Grenoble,
Grand’Place
Grenoble is often
described as the capital of
France’s ‘silicon valley’, a
growing and prosperous
region with a population
of around 450,000.
Grand’Place was originally
constructed in 1975 and
was acquired by Corio in
1998. At that time the
centre, with an original
GLA of 29,500 m2 owned
by Corio, was ‘undermanaged’, but its excellent
location and accessibility
made it ripe for major
redevelopment.
The first stage of Corio’s
redevelopment of this
project resulted in an
opening of a major
extension in November
2001, introducing several
important tenants, such
as Hennes & Mauritz,
Nature et Découvertes
and Sephora.The
extension raised the
average rental level of the
centre considerably,
which promises well for
forthcoming rent reviews
in the original sections,
which are being extended
and upgraded in 2002.
Grand’Place provides an
excellent example of
how value can be added.
On completion of the
second phase of the
redevelopment in 2003,
the centre will comprise
around 80,000 m2, and
will have represented a
total investment of around
€ 105 million.
100
Occupancy rate
The Netherlands
(%)
95
95
100
Occupancy rate
Spain
(%)
95
90
90
90
85
85
85
80
80
80
75
75
’97 ’98 ’99 ’00 ’01
’97 ’98 ’99 ’00 ’01
V Occupancy rate total portfolio
100
Occupancy rate
France
(%)
goals and targets for the local organisations and
addressing their overall responsibilities.The
business planning and budgeting cycle is an
integral part of the company’s control and
risk management systems.
V
The direct investment result increased by 49%
from € 99.9 million to € 148.4 million in 2001.
This increase is mainly a result of the merger
with WBN at the end of 2000 and the
acquisition of the Trema portfolio, which has
been consolidated as of 9 November 2001.
Gross rental income increased by 48% to
€ 249.8 million. Similarly, this increase was
almost completely due to the expansion of the
retail portfolio as a result of the WBN merger
and the Trema acquisition. Other contributory
factors were the higher income from rent
reviews and a sustained high occupancy rate of
97.2% (2000: 97.5%). Retail accounted for an
increase in gross rental income of € 77.2 million
from € 64 million to € 141.2 million,
representing 120% growth. Although the office
portfolio decreased by 10%, higher rents resulted
in gross office rental income increasing by 4%
from € 104.3 million to € 108.6 million.
Net operating income on retail amounted to
€ 116.0 million (2000: € 50.0 million), resulting
in a net yield of 6.8%.With a net operating
income on the offices portfolio of € 88.6
million (2000: € 83.8 million) and a net yield of
7.3%, net yield on the total portfolio amounted
to 7.0% (2000: 7.2%).
Interest expenses and administrative expenses
increased sharply from € 33.7 million to € 56.0
million as a result of the WBN merger and the
Trema portfolio acquisition.
’97 ’98 ’99 ’00 ’01
75
The indirect investment result, which consists
of adjustments to property values mainly in the
form of revaluations, rose marginally from
€ 100.5 million to € 101.3 million in 2001.
The property portfolio was revalued upwards by
€ 111.0 million (2000: € 106.1 million) resulting
largely from revaluations within the Dutch and
French portfolios.Total revaluations of the
portfolio were 4.1% of the book value as at
31 December 2000.
Corio applies a definition of net asset valuation
that is after deduction for transfer taxes and
other selling expenses. Furthermore a provision
for deferred tax liabilities is formed against
shareholders’ equity.
Changes in the provision for deferred tax
liabilities, amounting to € 4.7 million, is
charged to the revaluation reserve.The indirect
investment result also includes allocated
administrative expenses charged directly to the
revaluation reserve, amounting to € 4.9 million.
A net exchange loss of € 0.1 million on the
US dollar exposure is also included in the
indirect result.
Movements in shareholders’ equity
and net asset value per share
Shareholders’ equity after profit appropriation
increased by € 148.8 million to € 1,794 million.
Holders of 54% of the shares elected to receive
the 2000 dividend in the form of a stock
dividend valued at € 75.8 million, necessitating
the issue of 2.9 million shares.The company
repurchased 1.0 million of its own shares for a
total amount of € 26.2 million.
The other movements represent the translation
differences that occur as the direct and indirect
investment result per share are calculated on the
13
Grenoble, Grand’Place Description: shopping centre serving the Grenoble
region (Alps) Year of acquisition: 1998 Year of construction/renovation: 2001
Lettable area: 40,000 m2 Parking spaces: 2,017 Occupancy rate: 100% Book value:
€ 106.1 million Annual rent: € 7.0 million Market rent: € 8.0 million Major
tenants: Hennes & Mauritz, Go Sport, Nature et Découvertes Rent conditions:
generally 12 year leases
average outstanding number of shares, whereas
the net asset value per share is calculated on the
shares outstanding at year-end.
The net asset value per share amounted to
€ 29.53 before profit appropriation and to
€ 27.25 after profit appropriation.
Movements in shareholders’ equity and net asset value per share
(x € million)
Per share (x € 1)
148.4
2.28
Revaluations
Changes in provisions for deferred tax liabilities
Exchange differences
Allocated administrative expenses
111.0
-4.7
-0.1
-4.9
1.70
-0.07
-0.07
101.3
1.56
249.7
3.84
Stock dividend
Repurchase of own shares
Other movements
75.8
-26.2
-0.4
Changes in equity before proposed profit
appropriation
Proposed profit appropriation
Changes in shareholders’ equity after proposed
profit appropriation
0.01
-0.01
-0.05
49.2
-0.05
298.9
3.79
-150.1
-2.28
148.8
1.51
Financing
The key financing ratios are:
14
31-12-01
31-12-00
Leverage (net debt/total assets)
39.9%
Average cost of fixed rate debt
5.5%
Interest cover of net rental income to net paid interest 4.58
32.3%
5.6%
4.92
Results per share
The direct investment result increased by 5.6%
from € 2.16 per share in the previous year to
€ 2.28 per share in the year under review.
The indirect investment result per share showed
a return of € 1.56, or an increase of 6%, on the
net asset value of € 25.74 per share as at the end
of 2000.
Per share the total performance in 2001
amounted to € 3.84, or a return of 14.9% as
measured against the net asset value of € 25.74
per share as at the end of the previous year.
Capital resources
remaining term of the long-term loans is
5.1 years.
Dividend
The Management Board proposes to declare a
dividend of € 2.28 per share for 2001.The
dividend will be payable, at the shareholder’s
option, entirely in cash or € 1.82 (80%) in cash
and € 0.46 (20%) in shares charged to the
premium reserve, at a ratio to be determined on
17 May 2002.
The dividend will be payable on 23 May 2002
and the shares will be distributed as from that
date.This means an increase of 5.6% over the
year 2000. On the basis of the average share
price in 2001 of € 26.00, the dividend yield
amounts 8.8%.
It is Corio’s funding objective to ensure that it
has the financial resources to meet its ongoing
commitments and acquisitions, while minimising
its cost of capital. In terms of leverage, Corio
The company decided to change its dividend
seeks to maintain a debt level of approximately
policy in line with its growth strategy. Corio
50% as the long-term target.
believes that this change will enhance its profit
and dividend growth in the future. It is Corio’s
• At 31 December 2001, Corio had unused
long term objective to ensure that the pay-out
committed credit facilities available to the
ratio will be approximately 80% of the direct
amount of € 150 million.
investment results. Barring unforeseen
circumstances, the dividend per share for 2002
• As part of the transaction by which VIB and
(and subsequent years) should not be less than
WBN merged to become Corio, Stichting
the dividend per share for 2001.
Pensioenfonds ABP provided the company
with an exchangeable loan of € 90 million.
Outlook
This loan will be repayable on 31 December Corio will focus on generating maximum
2002, in cash or in shares at Corio’s option.
income from its real estate portfolio in 2002.
Corio has the right to extend the loan until
The company will benefit from a full year’s
31 December 2003 and the loan will
contribution from the Trema portfolio, which
continue to be repayable in cash or in shares
it acquired in November 2001.
at the company’s option.
Commensurate with its objective and strategic
• The loans increased in 2001 from € 896
focus, ongoing investment commitments for
million to € 1,430.4 million as a result of
2002 of € 180 million together with expansion
the merger with WBN and the Trema
by potential corporate acquisitions should
acquisition. Fixed rate debt amounts to
increase Corio’s portfolio in the retail sector.
60% and floating rate debt 40%.The average
15
In order to strengthen its balance sheet, Corio
intends to divest € 200 million to € 300 million
of its offices portfolio and smaller properties in
its retail portfolio to the value of € 50 million
to € 100 million, which no longer fit the
strategy.
On the basis of current information from the
company’s principal markets and depending on
the progress made in realising the planned
disposals, the Management Board expects at
least a 6% increase in the direct investment
result per share for the year 2002.
Utrecht, 21 March 2002
The Management Board
16
Corporate Governance
The Management and Supervisory Boards are
responsible for the overall corporate governance
of Corio, and endeavour to maintain the highest
standards of integrity and transparency.They
guide and monitor the business and affairs of
Corio on behalf of the shareholders, to whom
they are accountable.
Supervisory Board and
Management Board
The General Meeting of Shareholders makes
appointments to both the Management and
Supervisory Boards.The Supervisory Board,
which meets in the absence of the Management
Board, elects its own Chairman and ViceChairman from amongst its members.The
Management Board manages Corio under the
supervision and with the advice of the
Supervisory Board.The Supervisory Board may
appoint one of the members of the
Management Board as chairman of the
Management Board.The remuneration received
by each member of both the Management and
Supervisory Boards during the year under
review is presented in the Annual Report in a
separate statement within the Annual Accounts.
The Management Board, with the support and
approval of the Supervisory Board, has set its
fundamental strategic direction to be an
independent investment company specialising
in European commercial property, with its
primary focus on the retail sector. Corio’s overall
financial objective is to maximise long-term
shareholder value. Strategic planning is guided
by ethical principles and informed by the
company’s responsibilities to its shareholders,
customers and employees.The Supervisory
Board aims to ensure that the experience and
expertise within its own membership makes a
good match with Corio’s activities and strategic
focus. Membership of the Supervisory Board is
limited to a maximum period of 12 years unless
the interest of the company would require
otherwise.
General Meetings of Shareholders are called by
the Management Board or the Supervisory
Board.They are held at least once annually to
discuss the reports of the Management and
Supervisory Boards, to finalise the Annual
Accounts and to resolve on any other items
that they have included in the agenda. Major
decisions fundamentally affecting Corio’s nature,
size, structure and risk profile are subject to the
shareholders’ approval. Subject to the provisions
of its Articles of Association and provided that
they are received in a timely manner and are
considered appropriate, the Management Board
and/or the Supervisory Board will also add
agenda items which have been proposed by
shareholders. Corio shareholders representing
capital of a nominal value of at least € 10
million may request the Management Board
and/or Supervisory Board to call a General
Meeting of Shareholders. Shareholders are
entitled to cast one vote for each ordinary share
they hold, and are able to vote by proxy if
necessary.The resolutions of the General
Meeting of Shareholders are passed by a simple
majority of the votes cast, except in any cases
where law or the Articles of Association
prescribes a larger majority.
Internal controls
The Management Board is responsible for
systems of internal control and risk management, the objective of which is to manage,
rather than eliminate, the risk of failure to
achieve business objectives. Accordingly, they
can only provide reasonable, but not absolute,
assurance against material misstatement or loss.
An ongoing process for identifying, evaluating
and managing the material risks faced by the
17
company is implemented.This process has been
in place throughout the year under review, and
its effectiveness has been reviewed by the
Supervisory Board.
Code of conduct
Corio has established a code of conduct.This
document describes the fundamental principles
that govern how the company and its employees
should conduct their affairs. Corio seeks to
achieve the highest possible return for its
shareholders at low risk, while respecting the
values and standards embodied in this code of
conduct.The company recognises its responsibility to shareholders, customers, employees,
business partners and society.
Corio complies with the law and regulations in
all jurisdictions where it operates. Furthermore,
it operates within generally accepted standards
in the industry.The company insists on integrity
in all aspects of its business and expects the same
in its relationships with those with whom it
does business. Corio retains its independence in
its dealings with third parties, and its staff must
work to preserve that independence at all times.
Communication
In addition to publishing this independently
audited Annual Report and Accounts, Corio
also promptly publishes quarterly results and
any information which may influence the price
of its shares, including changes in the structure
of ownership and significant acquisitions or
divestments.The company also makes every
effort to enhance the participation of, and its
communication with, the international
investment community by providing key
information in at least two languages and via
its internet site at www.corio-eu.com.
18
Corio supports and endorses the best practice
policy recommendations as set forward by the
European Public Real Estate Association
(EPRA).The recommendations cover
accounting and valuation issues as well as
additional disclosure.These recommendations
enable European public real estate companies to
provide the investor community with financial
statements which are clearer, more transparent
and comparable across Europe. Corio will
endeavour to comply with these
recommendations subject to overriding
considerations of business confidentiality and
cost.
Supervisory Board
G.J. Swalef (1940), Chairman
Nationality: Dutch. Former position: Chairman of Executive Board of Achmea Groep. Supervisory
directorships: Eureko (Vice-Chairman), Banco Comercial Português, Big Bank Gdanski and others.
First appointed: 1990. Current term of office expires: 2003.
J.D. Bax (1936),Vice-Chairman
Nationality: Dutch. Former position: President of IHC Caland. Supervisory directorships: Smit
Internationale, Kon. Frans Maas Groep, IHC Caland and others. First appointed: 1996. Current term
of office expires: 2004.
W. Borgdorff (1960)
Nationality: Dutch. Current position: Managing Partner Fund Investment of NIB Capital Private
Equity. Supervisory directorships: Kantoren Fonds Nederland. First appointed: 2000. Current term of office
expires: 2005.
Mrs. N. Kroes (1941)
Nationality: Dutch. Former positions: President of Nyenrode University and Minister of Transport,
Public Works and Water Management. Supervisory directorships: Ballast Nedam, mm O2,
P&O/Nedlloyd, Prologis, New Skies Satellites and others. First appointed: 1994. Current term of office
expires: 2002.
J.A. de Kreij (1942)
Nationality: Dutch. Current position: independent consultant. Former position: CEO Rodamco N.V.
Member of: Investment Committee VGZ and EIP, ULI Trustee Board. First appointed: 2001.
Current term of office expires: 2005.
B.Vos (1939)
Nationality: Dutch. Current position: independent consultant. Supervisory directorships: Orange
Global Property Fund,Tsjechië en Slowakije Fonds and others. Member of: Nederlandse
Franchisevereniging (Chairman). First appointed: 2000. Current term of office expires: 2004.
G. Wieringa (1936)
Nationality: Dutch. Former position: Director Investments, Pensioenfonds PGGM. Member of:
Executive Committee of Stichting Garantiefonds Reisgelden and Investment Advisory Committees
of ABP, Interpolis, KPN-TPG Pensioenfonds and others. First appointed: 1991. Current term of office
expires: 2003.
19
Report of the Supervisory Board
To the General Meeting of Shareholders
We have pleasure in submitting to your meeting
the Report and Accounts of Corio N.V. for
2001 as drawn up by the Management Board.
The auditors, KPMG Accountants N.V., have
examined the accounts and have issued an
unqualified report thereon.We therefore
recommend that you adopt the accounts as
presented.We also recommend that the proposal
of the Management Board to distribute a
dividend for 2001 of € 2.28 per share be
adopted, whereby the dividend may be paid in
cash or, at your option, € 1.82 (80%) per share
in cash together with a stock dividend charged
to the share premium reserve which shall have
a value of at least € 0.46 (20%) per share.
Mr G. ter Veer retired as a member of the
company’s Supervisory Board at the General
Meeting of Shareholders held on 25 April 2001.
Mr J.A. de Kreij was appointed in his place.
We pay tribute to Mr Ter Veer for the many
services rendered by him to the company.
Mrs N. Kroes is due to retire in accordance
with the schedule of rotation at the forthcoming
meeting, and Mrs Kroes is available for
reappointment.
held on 7 December 2001.To fill the vacancy
that had arisen as a result of the resignation of
Mr J.Visscher, the appointment of Mr J.P. van
Leeuwen as a member of the Management
Board of Corio was approved during this
meeting.
The Supervisory Board met on nine occasions
in the year under review.The principal agenda
items were corporate strategy, organisational
changes, the financial results, the development
and composition of the portfolio and financing,
as well as the purchase of the Trema portfolio.
Meeting in the absence of the Management
Board and acting in accordance with its by-laws,
the Supervisory Board reviewed its own
composition and performance and that of the
Management Board.The Supervisory Board
did not establish subcommittees in 2001.
We thank the Management Board and the staff
for their contribution and commitment to the
achievement of Corio’s objectives in the year
under review.
The Supervisory Board
The same meeting adopted a resolution to
amend the Articles of Association to the effect
that the company change its name. As from
26 April 2001, the company has operated as
Corio N.V.
On 9 November 2001 Corio announced that
it had reached agreement on the acquisition
of the Trema portfolio, including its local
management teams in France, Italy and Spain.
The strategic rationale which formed the basis
for this transaction was explained in an
Extraordinary General Meeting of Shareholders
20
Review of Operations 2001
Geographical distribution Retail
The Netherlands 52%
France 23%
Italy 15%
Spain 10%
Following the comparatively strong growth in
2000, evidence of a global slowdown had
already become increasingly apparent in the
European economies in the first eight months
of 2001. As a result of the tragic events of
September 11 in the USA, the economic
outlook for Europe deteriorated further. Average
EU inflation rose from 1.9% in 2000 to 2.4% in
2001, while economic growth slowed to 1.6% in
the year under review from 3.4% in the previous
year. Investments were cut back considerably,
international trade weakened and growth in
private consumption slowed down. Business and
consumer confidence decreased, despite the
European Central Bank’s proactive economic
management providing incentives to the market.
Property markets were inevitably affected by the
economic slowdown and uncertainty. Demand
fell significantly, particularly in some office
markets and especially during the second half
of the year. Although occupancy rates remained
high, the amount of sublet space increased.
There was no oversupply in the property
markets and there were few speculative plans to
increase the supply of space.The rental growth
of the last few years levelled off generally.
The following pages describe Corio’s
commercial property operating activities in
2001, divided into separate sections for Retail
and Office Operations.The company continued
to follow its strategy of pan-European expansion
during 2001.
Retail operations
Demand for retail space remained strong at the
beginning of 2001. Later in the year, a number
of retail chains reconsidered their strategies in
reaction to the anticipated reduction in
economic growth and consumer spending,
increased competition and reduced margins.
Marks & Spencers closed their shops outside the
UK, Gap postponed their expansion plans and
Mango opened fewer new shops in Spain.
In some countries top rents stabilised in the
second half of the year, whereas in others they
continued to grow, although at a lower rate.
European retail sales showed some signs of
decline towards the end of 2001.
Corio’s unique portfolio of key shopping centres
in The Netherlands, France, Italy and Spain
affords international retailers a wide range of
representation possibilities.The company’s
national teams ensure Corio’s centres are
characterised by their efficient layouts, high
customer traffic volumes, effectively managed
space and popular anchor tenants. Returns are
optimised by high occupancy rate, proactive
lease renegotiation and linking rents to tenant
revenues.
Internationally operating retail chains are
increasingly looking to ensure their presence
in more of the continent’s foremost shopping
locations. Corio’s network of hands-on
country management teams works with these
businesses to select the optimal match for
their requirements from the company’s
pan-European portfolio of retail property.
The following sections present a review of the
progress of Corio’s activities in the retail
property markets of The Netherlands, France,
Italy and Spain during 2001.
21
The Netherlands: Retail
• Implementation of center management
concept begun
• Key acquisition:Villa ArenA, Amsterdam
• Major redevelopment: Alexandrium I,
Rotterdam
Market and trends
Economic growth in The Netherlands
decelerated sharply in 2001, falling to 0.9
from 3.5% the year before.The growth rate is
expected to rise marginally in 2002. After a
number of years in which economic growth
in The Netherlands has been higher than the
EU average, it is expected to remain below the
average for the EU during the next two years.
The boom in private consumption came to
an end in 2001, when it only rose by 1.3%
compared to 3.8% in 2000. Consumer price
inflation rose to 4.8% in the year under review,
but will decrease in 2002. An increase of growth
is anticipated in 2003, when inflation should
fall, private consumption should pick up and
investment growth should be rising again.
Mergers and acquisitions continued to result
in a decreasing number of larger players in The
Netherlands retail industry in 2001. Although
more new foreign retail chains arrived in The
Netherlands in 2001, especially in established
city shopping streets, a number of earlier arrivals
from the UK had withdrawn by the end of the
year under review.
international standards.The development of
virtual information and sales channels within
the traditional and trusted retail environment
appears to offer the best growth prospects in
the near term. Rather than providing a
substitute for conventional retail sales, the
Internet is now seen as offering a supplementary
medium in multi-channel strategies.
As had been the case in 2000, initial yields in
the Dutch retail property market were under
pressure, some of which was caused by foreign
investors, mostly from Germany.
In the year under review the first two factory
outlets in The Netherlands were established, in
Roermond and Lelystad. Due to Dutch market
circumstances, it is unlikely that appropriate
commercial space will be made available for
further factory outlets in The Netherlands.
Portfolio
Above all, Corio’s retail properties must meet
the criterion of offering a healthy direct return,
both now and in the future. Furthermore, the
management attention required by the centres is
assessed in relation to the expected return.
In May 2001 Corio purchased a large part of
the Villa ArenA home furnishing shopping
centre in Amsterdam for € 65 million.The
company acquired approximately 60% of the
total area of 75,000 m2, the remaining part
being owned by a group of owner/users.The
While on-line Internet sales rose in 2001,
net initial yield on this investment is just over
especially of books, CDs and travel, this made
7%.Villa ArenA is located in the Amsterdamnegligible impact on bricks-and-mortar retailers. Zuidoost multifunctional shopping and
On-line sales represented only a 0.65% share
entertainment district.The building consists of
of total retail sales in The Netherlands, which
four floors of home furnishing and decorating
is a very low proportion by current
shops and includes restaurants, cafés and child-
22
Rotterdam,
Alexandrium I
The Alexandrium I
project is located next to
the Rotterdam Alexander
rail, metro and bus station
in the north east of the
city and easily accessible
from the A20 motorway.
Together with the adjacent
Alexandrium II megastores and Alexandrium III
home furnishing mall, the
centre forms Europe’s
largest shopping concentration, with a total GLA
of 125,000 m2.
Originally built as the
‘Oosterhof ’ in 1984, when
Corio acquired the centre
ten years later there were
many aspects of its design,
facilities and connections
that were well below
modern standards.While
the centre has an
immediate catchment area
of 200,000 consumers, the
redevelopment currently
underway will extend
Alexandrium I’s GLA
from the original
29,000 m2 to 44,000 m2,
and it will result in a
regional mall of the
highest quality.
With the introduction to
Alexandrium I of several
very strong European
brands, such as Hennes &
Mauritz and Bennetton,
the € 135 million centre
typifies the value which
Corio has created by the
reshaping of its existing
assets.
care facilities.Villa ArenA is easily accessible by
car and public transport. Corio already owned
a part of the neighbouring ArenA Arcade, a
complex of large-scale, out of town stores.
ArenA Arcade consists of two buildings, in total
16,000 m2, and the company owns one of these
(4,100 m2).
In the fourth quarter of 2001, in line with its
strategy the company sold individual retail
properties and small retail complexes to the
value of € 22.9 million in The Netherlands.
In connection with the acquisition of the
Trema portfolio, Corio plans to sell
approximately 15 projects in 2002 in The
Netherlands with a book value of € 55 million.
The center management concept has enhanced
the quality of the management of those
shopping centres in which teams have already
been installed by ensuring they are clean, safe
and well maintained, minimising rent arrears and
regular consultation with tenants.The concept
will be elaborated as it is phased-in over the
coming two years.The service and market
profile of the centres will be improved by more
visible presence of the management teams, more
intensive consultation with tenants, introducing
Corio’s philosophy to service partners and better
contact with relevant parties, such as local
government agencies, the police and Chambers
of Commerce.
The philosophy of the Letting Department is
that nothing should stand between Corio
Operations
and its customers.The department has
In keeping with its policy of adding value by
frequently been instrumental in identifying and
active, hands-on involvement in the effective
operational management of its shopping centres, closing deals on a nationwide basis in the year
Corio launched the implementation of its center under review. Corio’s European expansion now
offers them new opportunities to help drive
management concept in The Netherlands in
pan-European deals for internationally operating
2001.The company’s own committed on-site
retail chains.Their closeness to the retailer
management teams ensure the optimal
enables them to co-operate with the new center
positioning of the centres and their individual
management teams in negotiating turnoverretail units, maximise the net result of their
related rental schemes and in e-commerce and
exploitation, reduce risk and improve the
centre marketing initiatives.
forecast reliability of reporting.
The first five center management teams were
established during 2001. Each comprises general,
facility and technical management, and makes
use of an in-house service desk. As a percentage
of the total Dutch retail portfolio as at the end
of 2001, 36% of the centres’ management had
been in-sourced at year-end. It is planned to
increase this figure to 62% in 2002 and to in
excess of 70% by the end of 2003.
Corio is establishing Internet portals for selected
Dutch shopping centres in its portfolio where
retail tenants can rent space.These e-commerce
activities are part of the overall branding strategy
for the shopping centres, and the first two of
these websites will be operational by June 2002.
25
Rotterdam, Alexandrium I Description: regional shopping centre Year of
acquisition: 1994 Year of construction/renovation: 2001 Lettable area: 39,400 m2
shopping gallery and 7,200 m2 offices Parking spaces: 1,350 Occupancy rate:
100% Book value: € 148 million Annual rent: € 11.8 million Market rent:
€ 15.7 million Major tenants: Hema, Hennes & Mauritz,WE, Laurus, Douglas
Rent conditions: long-term leases with an expiration of 5 to 10 years
France: Retail
• Acquisition Trema portfolio
• Other acquisitions: Sagep portfolio, Dijon &
Bordeaux
• Major redevelopment: Grand’Place, Grenoble
Market and trends
The strong growth of the French economy
came to an end in 2001. After having grown
by 3.5% in 2000, the GDP is estimated to have
expanded by only 2.1% in 2001. Most indicators
are negative for 2002. Gross fixed investments,
growing at 6% per annum during the booming
period of the previous three years, increased
by 3.4% in 2001 and will be down in 2002.
Exports will also be fairly weak and the
economy will rely heavily on private
consumption to support growth in 2002.
Inflation is expected to be level with the EU
average of 1.1%.
Demand for new retail space will be lower in
2002 due to the economic conditions and as a
reaction to the fast growth of recent years.
Supply of new space will remain limited.There
will be downward pressure on rental levels in
secondary locations in Paris and in some
provincial cities, but in general a balanced
market is anticipated.Yields are expected to
remain at their present levels.
The retail markets stabilised in 2001 after three
exceptional years of rental growth. Between
1998 and 2000, international retailers had been
competing for strategic locations on the best
commercial streets and were involved in
development projects. Strong demand for
ever-larger floor plans led to a strong increase
in rental values. At the same time the level of
supply was rather limited.
• Originally built in 1982 and extended in
1997, Ivry Grand Ciel is situated just five
kilometres southeast of the centre of Paris, on
the N19. It is a three-level structure, consisting
of 27,400 m2 of retail units (owned by Corio),
and anchored by a Carrefour hypermarket and
a C&A store.
A decrease in demand was noted in the second
half of 2001 as a result of the economic
slowdown. Especially following the events of
September, retail chains have been adopting a
‘wait-and-see’ approach, concentrating on
maximising the profitability of their existing
properties rather than on further expansion.
Demand from fashion retailers has fallen in
particular.
26
Despite planning restrictions, the number of
new centres under development showed some
growth. Many centres that had received little
attention over the previous 20 to 30 years were
redeveloped and expanded.
Portfolio
The year was naturally dominated by
November’s Trema acquisition, which added
five important new French centres:
• La Grande Porte, situated at the ZAC Porte
de Montreuil, east of Paris, opened in 1991.
It has a 6,200 m2 gallery containing 52 retail
units and is also anchored by a Carrefour
hypermarket.
• The Les Trois Moulins shopping centre
opened in 1992 and is situated eight
kilometres southwest from central Paris in
Issy les Moulineaux. It is anchored by an
Auchan hypermarket and includes a 6,900 m2
gallery with 55 retail units.
• La Mayenne is situated near Laval, sixty
kilometres from Rennes and eighty kilometres
from Le Mans. Built in 1986, the centre has a
7,200 m2 gallery and a 10,000 m2 Carrefour
hypermarket (owned by a third party).
• Situated three kilometres from the centre
of the city of Cherbourg in the BasseNormandie region, Contentin is easily
accessible by car and public transport.
Contentin forms part of a large retail park,
which also includes 14 stand-alone stores,
including a branch of Castorama.The centre
consists of a 6,000 m2 gallery and a 9,700 m2
Auchan hypermarket (owned by a third party).
(in Mulhouse).These three assets were valued
at € 13.3 million, cover a total area of
approximately 31,000 m2 and are expected to
provide the possibility of creating extra value
by renovation.The SAGEP portfolio also
comprised three groups of retail warehouses
with a total area of approximately 17,000 m2 and
located in retail zones within the Paris region.
The company completed the purchase in
September of a building in the heart of
Bordeaux, located on the rue Saint Catherine,
a prestigious shopping thoroughfare.The
12,000 m2 former department store is being
fully redeveloped and is pre-let to four major
retailers: Hennes & Mauritz, FNAC, Sephora
At the beginning of 2001 Corio acquired the
and Go Sport. Corio is financing the
‘Au Pauvre Diable’ property, located in the
development but the risks are borne by the
centre of Dijon, the capital of Bourgogne, for
developer.The completion of the development
€ 21 million. It comprises around 4,000 m2 of
is scheduled for the summer of 2003, and the
retail floor area and 65 apartments and was
initial yield is 7%.The total investment value is
completed in phases during 2001.The shops and approximately € 46 million.
apartments were let on long-term leases, and the
net initial yield was just under 8%.
The first phase of the renovation and extension
of the Grand’Place shopping centre in Grenoble
Corio also purchased the 6,100 m2 gallery of
was successfully completed at the end of 2001.
the ‘Centre Commercial Carrefour’ shopping
Corio originally owned a total area of 29,500
centre in Cherbourg.The whole centre
m2. Following the restructuring of some areas
2
comprises a total of 20,000 m of retail floor
and the construction of new areas, the total at
area and 650 parking spaces.The gallery was
year-end was 40,000 m2. Upon its opening, the
purchased for € 8.6 million and provided a net
extension was already fully let to major national
initial yield of 8%.
and international retailers, which improved the
regional attraction of the centre.
In April the high-yielding and highly
reversionary SAGEP retail portfolio was
Operations
acquired at a net price of € 21.3 million.The
The principal focus of Corio’s value-adding
portfolio comprises three prime retail properties operations in France in 2001 was on
located in the centres of two cities in the east of acquisitions, together with the re-commerFrance and let to major national retailers such
cialisation and extension of exisiting shopping
as Printemps (in Metz) and Monoprix
centres and former department stores.
27
After having built up its portfolio in recent
years, Corio France will be paying particular
attention to the growth of its performance in
2002.The French portfolio has much potential,
in view of the possibility of increasing the rents
(reversionary potential).
The company continued working proactively
with top national and international retail groups,
creating new opportunities and value for all
parties concerned; not least existing tenants, who
benefit from the additional traffic attracted.
Italy: Retail
• Italy added as Corio’s new home market
• Experienced management team provides
good platform for growth
Market and trends
Due to the deterioration in global economic
conditions, economic growth in 2001 slowed
down to 1.7% in comparison to 2.9% in the
previous year.
Italy’s relatively high level of public debt,
restricting the government’s capacity to reduce
taxation, led to economic growth below the
EU average, but this gap is expected to narrow
over the next few years. Growth in private
consumption fell to 1.2% in 2001, compared to
2.9% for the year before. A modest increase is
expected for 2002, but higher growth figures are
currently predicted for the coming four years.
The shopping centre concept arrived much later
in Italy than in most other European countries.
Since their first appearance in the 1970s,
shopping centres experienced their greatest
expansion between 1991 and 1995, when more
than 250 new centres were opened. As in most
28
southern European countries, hypermarket
operators led the development of shopping
centres.The French giants, Carrefour and
Auchan, joined Italian chains such as Finiper,
Panorama and Euromercato. Later professional
property development companies stepped into
the market and took their share.
At present there are 400 shopping centres in
Italy, providing some six million m2 of retailing
space. In terms of total shopping centre gross
lettable area (GLA), Italy ranks fourth in Europe,
but with a ratio of around 100 m2 shopping
centre space per 1,000 inhabitants, Italy ranks
well below the European average.The
distribution of shopping centres reflects the
regional economic disparities, with more than
80% being located in the north and centre of
the country. Shopping centre density in the
north is comparable to that of most countries in
northwest Europe, whereas the centre and the
south have very low saturation levels.
Strict planning regulations inhibit the
development of new shopping centres.
Legislation intended to liberalise the procedures
was introduced in 1998, but has not resulted in
significant improvements. Licences must be
obtained from municipal, provincial and regional
authorities, and at each level opponents can
block plans for new centres. Ceilings on the
number of new developments imposed by most
regions tend to limit competition between
centres.
Although the Italian retail trade has traditionally
been dominated by small independent
businesses, with a density of shops per inhabitant
more than double the average in northern
Europe, there has been a strong recent trend
towards modernisation with a decline in
traditional retail distribution formats.The
continuing sales growth in out of town
shopping centres demonstrates the significant
change in shopping patterns in favour of them.
Given that there is also a lack of availability
of prime city centre locations, international
retailers are therefore looking to regional
shopping centres when expanding into Italy.
Increasing affluence and an overall retail sales
growth rate above the European average are
further positive indicators for the Italian
shopping centre market.
At present, international retail chains are poorly
represented compared to other European
countries. Increasing demand from panEuropean operators means this is expected to
change in the coming few years, which will also
spur rental growth.The last four years have seen
retail turnover growth of between 13 and 18%,
but growth in rents has been much lower.This
low rent/turnover ratio provides the shopping
centres’ owners and managers with a strong
negotiating position.
Demand from international investors is
increasing with strong interest form Dutch,
German, French and British institutions putting
pressure on initial yields. An increasing number
of Italian parties are also looking for investment
opportunities in the retail market, resulting in a
much more fluid market than a decade ago.
Portfolio
The three shopping centres that constitute
Corio’s initial Italian portfolio are amongst the
top tier in the country. Each is in a dominant
position in its catchment area, and should
experience above average growth in sales and
rents.There has been strong average annual
turnover growth in the last four years, with
13.5% for Shopville Le Gru in Turin, 13.3% for
Shopville Gran Reno in Bologna and 18% for
GrandEmilia in Modena.The average net initial
yield of the three centres is 6.1%. It is expected
that rents will increase substantially in the
coming years, given the low rent/turnover ratio.
• The super-regional Shopville Le Gru shopping
centre in Grugliasco, on the outskirts of Turin,
was opened in 1994. It has two levels, an
overall GLA of 62,200 m2, of which 32,000 m2
is owned by Corio, and 4,700 parking spaces.
It dominates the Turin retail market and is the
largest centre in the region of Piedmont, built
on a site of 210,000 m2. Le Gru is anchored by
a 12,000 m2 Carrefour hypermarket. It has
172 shop units, including Obi, La Rinascente,
Cisalfa and Media World, and a food court of
exceptional quality, unique in Italy. A
stand-alone 14,000 m2 IKEA store situated on
the parking lot contributes to the appeal of the
centre, which attracts around 11.5 million
visitors per year.
• Opened in 1993, Shopville Gran Reno is
situated close to the motorway in Casalecchio
de Reno, just outside Bologna. It received the
‘Best European Shopping Centre’ award in its
category in the following year and is the
largest centre in the Bologna area. It has three
levels, an overall GLA of 36,800 m2, of which
13,000 m2 is owned by Corio, and 2,700
parking spaces. Approximately 6.5 million
people visited the centre in 2001. Although
smaller than Turin’s Le Gru, it has a similar
profile in many ways. It is also anchored by a
Carrefour hypermarket, whose sales area of
13,000 m2 is distributed over two of the
29
centre’s levels and a large Media World unit.
IKEA and Castorama stores are situated
outside, which, together with the sports
facilities provided by a nearby Palasport,
strongly add to the attraction of the centre
as a whole.
• GrandEmilia is Corio’s youngest Italian
shopping centre, having opened in October
1996. It has an overall GLA of 39,800 m2, of
which 20,000 m2 is owned by Corio, 4,100
parking places and is anchored by a 12,000 m2
Ipercoop hypermarket. Built on a site of about
250,000 m2, the centre makes a pleasing, light
and well-maintained impression. GrandEmilia’s
high-quality design and commercial success
were recognised by a commendation from the
ICSC in 1997. Key tenants of the 91 retail
units include branches of Media World,
Oviesse, Bata Super Store, Giacomelli Sport
and Fiera de Libro. Although this centre’s
catchment area is certainly smaller that those
of Le Gru and Gran Reno, it is the dominant
regional centre, and accessibility from the
Bologna-Modena autostrada is excellent.
The visitor flow has been quite constant,
with about 6 million visits in the year under
review.
Operations
The team that now constitutes Corio Italia
has a broad experience in shopping centre
management, having owned and managed three
of the leading shopping centres in the country
since they were opened. Corio Italia have led
the development process of these centres since
their inception, defining their tenant mix and
market position and managing their initial
launch.
30
Corio Italia plays a leading role as one of the
few specialists in fine-tuning shopping centres
to the continuously changing taste of the public.
There has been continuous attention to the
functioning of the centres in the market and
modifications and reorganisations of the retail
concept and tenant mix have been made where
necessary.
With the experience and expertise they bring to
Corio, the local management team will be able
to add further value to its shopping centre
investments by adapting the company’s center
management concept to its Italian properties.
This added value will be essential in the
acquisition of additional Italian centres, which
will become a greater priority for the team.
Spain: Retail
• Spanish portfolio reaches critical mass through
Trema acquisition
Market and trends
After four years of buoyant activity, the Spanish
economy was affected by the global economic
decline in 2001 and has entered a period of
much slower growth, with real GDP growth
decreasing from 4.1% in 2000 to 2.6% in the
year under review.This reflects weaker domestic
demand growth as well as slower export growth
due to a weaker external demand. Nevertheless,
economic growth remained above the European
Union average.
Growth in private consumption decelerated
steadily in the second half of 2001. It dropped
from 4% in the previous year to 2.4% in 2001.
However the combination of lower interest rates
and falling inflation has supported real disposable
income growth.This should gradually restore
consumer confidence, which in turn will
support further growth in consumption.The
unemployment rate continues to drop, despite
a slowdown in the number of new jobs created.
Inflation fell from a six year high of 4.2% in
May 2001 to 2.7% in December.
The strong performance of the Spanish property
market continued well into 2001. Despite a
slowing of rental growth in all property sectors,
confidence about the future continues. It is
expected that investments will increase in 2002
as more finished product comes onto the
market.
Supply of retail space in major city high streets
is tight, especially for large units, and there is a
waiting list of foreign retailers wishing to enter
the market.Well known international anchors
such as Hennes & Mauritz, Media Markt and
PC City are rapidly expanding in Spain.
A number of mixed retail and leisure centres
opened in 2001, in some cases combined with
retail warehouses or factory outlets. New
concepts are entering the market because they
are well received by the public and as they also
avoid planning controls which are stricter for
the food sector. In some new centres
hypermarkets are being replaced by smaller
supermarkets, in combination with other anchor
tenants such as medium-sized stores or leisure
complexes. Since cinemas, restaurants and food
courts are anchor tenants in Spain, and planning
restrictions for these are less severe, a saturation
of this concept as resulted in some areas.
There has been increased interest in mediumsized stores, due to the reliability of their
operators and the sales volume they achieve.
Franchise chains continue to take up vacant
units in shopping centres and malls since they
are very keen to extend their geographical
coverage.The turnover of the franchise sector
increased by 12% in 2001 and it is predicted to
experience a further increase of 19% in the
coming year.With the number of franchisees
expected to grow by 3.7%, the main problem
for the sector is a lack of shop units. A number
of Spanish retail chains are expected to begin
their expansion into other European countries
in 2002.
In general, the pipeline of new projects will tend
to moderate rental increases, which are expected
to be slightly above inflation. Furthermore, as a
result of restrictions on new licenses, approved
centres of good quality will be able to take
advantage of the situation and accept only the
best tenants. As new space is supplied, rental
levels in less competitive centres will have only
limited upward potential, and some may decline.
Portfolio
Following rapid growth in the Spanish retail
portfolio in 2000, the only acquisitions in the
year under review were the two Trema
properties: Gran Turia in Valencia and Gran
Via de Horteleza in Madrid.
• Gran Turia is situated in Xirivella, to the west
of Valencia, next to a major residential zone
that represents its primary catchment area, and
is easily accessible from nearby motorways.
Opened in 1993 and renovated in 2000, Gran
Turia has a GLA of 56.300 m2, of which
31,800 m2 is used by Carrefour. Corio now
owns 18,400 m2 of the retail gallery.The
following operations own their own units:
Cines ABC, Diverdrak, Miro and Intersport.
31
There are 4,000 parking places in the adjacent
car park, which offers direct access to the
centre on either of its two floors. Of the
108 retail units, key tenants include Zara,
Cortefiel and Mango. It is well served by
a multi-screen cinema and food outlets,
including McDonald’s, Pizzeria Cuadriga,
Bocatta, Pans & Company and Cantina
Mariachi. 13 million customers visited the
centre in 2001.
• The Gran Via de Horteleza centre is located
in the north east of Madrid and consists of
25,500 m2 GLA, of which 6,400 m2 is taken
up by the gallery that now forms part of
Corio’s Spanish portfolio. 19,100 m2 over
two floors is used and owned by Carrefour.
Opened in 1992, the centre serves the people
who live and work in the area.The office
space linked to the centre was added to
the Spanish portfolio as part of the same
acquisition.The centre is easily accessible
from the M40 ring road and provides 1,700
parking spaces.There is also an adjacent
metro station, from which the city centre
can be reached in ten minutes. Important
retail tenants include Springfield, Cortefiel,
Benetton, Coronel Tapiocca, Body Shop and
Footlocker.There are also a relatively large
number of restaurants and fast food outlets.
There were 7.5 million customer visits in the
year under review.
Operations
The major expansion of Corio’s Spanish
portfolio in 2000 enabled Corio España to add
local expertise and become the company’s third
true home market. Consolidation and adding
value to the existing portfolio then became a
priority for the first part of the year under
32
review. Improvements to the tenant mix were
made in all the Spanish centres in 2001, with
particular success being achieved at Ruta de la
Plata in Cáceres. Plans for major extensions at
La Loma in Jaen and Sexta Avenida in Madrid
were prepared.
The integration of the Spanish Trema staff at
the end of 2001 provided Corio España with
the critical mass to discontinue the
subcontracting of many necessary functions.
For the first time Corio España had hands-on
centre management, at the new malls in Madrid
and Valencia.The company’s center management
concept will be applied and expanded to other
properties in 2002.
Geographical distribution Offices*
The Netherlands 67%
France 26%
Spain 5%
Others 2%
* including industrial and residential
Office & industrial operations
The overall demand for office space in Europe
declined throughout the year under review,
with considerably less activity in certain sectors,
notably technology, media and telecommunications.The average vacancy rate stabilised
initially, but increased in the second half of the
year as a consequence of a decrease in net
absorption and a growing volume of available
space.The growth in prime rents, which had
reached a peak in the current cycle in 2000,
decreased throughout the year. Office
investment in Europe last year fell short of
its record level in 2000, although it remained
above its long-term average.
As a result of the acquisitions and divestments
during the year under review, the proportion
of office, industrial and residential property in
the portfolio was reduced from 47 to 33%.
This trend will be continued in 2002.
The Netherlands: office &
industrial
• Significant refurbishment of Weena Point
in Rotterdam
• Substantial sales of offices in Amsterdam,
Rotterdam and Den Haag
During the first half of 2001, office-letting
activity remained at a fairly high level, especially
in the Randstad.The take-up of new office
space was only 9% lower than in the same
period in 2000, despite the slowdown in
economic growth. However by year-end a
take-up of about 20% less than the year before
was expected for 2001 as a whole. Demand for
office space centred principally on the high
quality segment, in which appearance and
flexibility are key factors, while vacancy
increased in the lower quality segment.
Take-up of office space reduced during the year.
The decrease in demand was caused by the
stagnating economy and the decline of the ICT
sector, notably in the telecommunications
industry. ICT businesses took up 390,000 m2 of
office space in 2001, which was 40% less than in
the year before.To put these figures in context
however, the total take-up still reached about
two million square metres, the second highest
level ever after the year 2000.
The discrepancy between demand and supply is
therefore set to grow further. Although take-up
will continue to decline, it is not expected to fall
to the low levels of the early 1990s. Unless the
supply of available office reduces or stabilises,
some market segments will develop into buyers’
markets.
The decline in take-up was most noticeable in
the most important office markets in the south
and west of the country, which can be attributed
to the international character of these regions.
More than half of the total increase in supply
during the year under review took place in the
Randstad.This was particularly the case in the
Amsterdam region, with 200,000 m2, and around
Utrecht, with 140,000 m2.
The industrial property market in The
Netherlands is growing and demand and supply
are starting to diverge. By the end of 2001
demand had decreased by 17% compared to the
year before, reaching the lowest point since
1997.This demand is primarily focused on
modern high-quality properties. Supply rose
substantially in 2001, by 30%, but the available
space largely consisted of older, less marketable
33
properties vacated by companies moving to
more modern, high quality buildings.
Price differentiation is taking place in the Dutch
industrial property market. Rents for modern
and high-quality properties are rising steadily,
while rents in less marketable properties are
stabilising.This trend is expected to continue
through 2002. Following their decline during
the last few years, industrial property yields are
generally stabilising in The Netherlands.
Portfolio
The refurbishment of the former Bouwcentrum
in Rotterdam was completed at the beginning
of 2001.The Bouwcentrum, which was
originally constructed shortly after the war and
forms a part of Weena Point, was then let
immediately. A number of other office properties
were also renovated and prepared for let.The
‘Taurus’ building, situated on one of the main
approach roads to Rotterdam, was re-let on a
long-term lease. Refurbishment of the office
building on Prof. E.M. Meijerslaan in
Amstelveen was begun.
Following an extensive portfolio analysis, two
office properties and a multifunctional complex
were sold in June 2001 for a total of € 34
million, amongst others the office properties
located at Wibautstraat 129, Amsterdam (better
known as the ‘Parooltoren’), and Seattleweg 7,
Rotterdam, of 10,000 m2 and 8,000 m2.
In October 2001, the Beatrixlaan office property
in Den Haag was sold for € 17 million.The
company chose to dispose of this asset because
the letting risks, following required renovation
and extension, did not conform to Corio’s
strategy.The property, which has a total floor
area of 13,100 m2 and 223 parking spaces, had
34
been part of Corio’s portfolio since 1994.
The Dutch industrial property portfolio was
valued at € 143.0 million at the end of 2001,
with no acquisitions or disposals having been
made.
Operations
By means of external benchmarking and regular
internal reviews, vacancy risks in the office and
industrial portfolio were reduced. In 2001 many
long-term lease contracts were once again
successfully renewed in conformance with
market conditions.
Close attention was paid to the reduction of
cyclical risks during 2001, and this will be
continued in 2002. Medium and long-term
trends, such as regional variances in employment
and developments in mobility and teleworking,
are also taken into account.
The disposals required in 2001 by the
implementation of Corio’s overall strategy
provided the opportunity to optimise the profile
of the company’s Dutch office portfolio, by
selling non-reversionary assets and properties
with higher vacancy risk.
France: office & industrial
• Substantial reversionary potential of French
office portfolio
• Sale of office building in Lyon
Take-up of office space in the Paris region in
2001 was considerably less than in the year
before.The main reasons for this reduction in
turnover were the weak economy and high
rental levels.The limited availability of good
quality office space in areas bigger than 5,000 m2
may also have slowed the market.This limited
Modena,
GrandEmilia
GrandEmilia is one of the
magnificent Italian centres
Corio acquired in 2001 as
a part of the former Trema
portfolio.This elegant
39,800 m2 centre, of
which Corio owns the
20,000 m2 mall, received a
commendation from the
ICSC soon after its
opening in 1997.
Well located next to a
motorway junction to the
south west of Modena, the
centre receives about six
million visitors each year.
GrandEmilia counts most
major brands amongst its
tenants, such as Media
World, Oviesse and
Giacomelli, and retail
turnovers are high.
The centre is extremely
reversionary, particularly
from 2004, and rental
reviews of up to 20% can
be expected.While it has
some potential for
extension, the centre will
be further optimised in
the main by Corio Italy’s
dedicated center
management team.With
minimal competition
provided in the Italian
market, GrandEmilia can
be expected to enjoy
continuing success for
many years.
As is the case with Corio’s
other Italian properties,
the centre profits greatly
from its regional
catchment area. It is
marketed actively, with
special events and
promotions being
organised regularly to
attract consumers.
supply caused companies to commit early to
projects in the year under review, with 75% of
the space in schemes larger than 5,000 m2 being
pre-let. However, some pre-let buildings were
then returned to the market, and some initial
tenants began sub-letting office space.
future supply is expected to remain limited.
Portfolio
Corio’s French office portfolio continued to
perform very strongly in 2001, with continuing
rental growth and record occupancy levels.
The amount of immediately available office
space and space coming to the market within
twelve months increased during 2001. Supply
coming to the market after twelve months has
fallen however, reflecting the reluctance of
developers to start new projects.The overall
vacancy rate in the Paris region rose slightly to
3.1% during the course of 2001.
The office building at Villeurbanne, Lyon,
was sold for an amount of € 11 million.The
implementation of the company’s strategy of
increasing the retail mix of the French portfolio
will continue with further office sales in 2002.
Following the 42% increase in rental values in
the previous year, it reduced sharply to 9% in
2001. However, rents continued to rise in the
first half of the year, whereas the second half saw
a stabilisation and even a slight readjustment to
lower rates.
The positive developments of falling vacancy
rates and rising rents from the last few years in
the Spanish office markets came to a halt in
Madrid but continued in Barcelona, although
at a more moderate level.
Take-up of office space is expected to remain
stable at best in 2002, but will probably fall
slightly as compared to 2001.There are no fears
of over-development, as stringent approval
procedures are applied and developers do not
start work without a future buyer, which for
speculative development is currently difficult.
Nevertheless, supply will increase due to falling
demand.
In the Paris region, the logistics and industrial
property markets were under pressure in 2001,
with rents for good quality logistics buildings
barely increasing. In the provincial cities these
markets were stable.The supply of modern,
good quality space continued to fall, forcing
occupiers into customer-made projects.The
Spain: office
• Purchase of 16,400 m2 offices in Madrid
Investors’ interest has fallen away in Madrid, but
in Barcelona there is still as much or even more
interest, especially from international investors.
Yields increased slightly during 2001 because of
reduced rental growth potential and increased
risk. Due to the lack of investment product in
Barcelona, yields began to stabilise towards the
end of the year, but were expected to increase
further in Madrid.
Portfolio
An office complex associated with the Gran
Via Shopping Centre in Hortaleza, Madrid
was added to the Spanish portfolio as part of
November’s Trema acquisition. Key tenants
of this building, which has a lettable area of
16,400 m2 and 300 parking spaces, include
Pepsico, Carrefour, Swedish Match and Adidas.
37
Modena, GrandEmilia Description: regional shopping
centre Year of acquisition: 2001 Year of construction/renovation:
1996 Lettable area: 20,000 m2 Parking spaces: 4,100 Occupancy
rate: 100% Book value: € 103.8 million Annual rent: € 6.4
million Market rent: € 6.6 million Major tenants: Media
World, Giacomelli Sport, Oviesse Rent conditions: long-term
leases with an expiration of 5 to 12 years
In line with the company’s strategy, Corio’s
only other non-retail property in Spain – the
offices at Barcelona’s Paseo de Gracia – will be
sold in 2002.
Germany: office
Corio’s 13,700 m2 office property in Böblingen,
near Stuttgart, will be sold in 2002.
USA: office
The Bethesda Office Center property in
Bethesda, Maryland, was sold at the beginning
of 2001 for € 34 million. Corio had originally
acquired a stake in the Bethesda Office Center
in 1978 and had become the sole owner of the
property in 1996.The centre offers a total of
16,300 m2 of office space and 361 parking
spaces.The property was sold at its book value.
Corio announced the sale of its last remaining
property in the United States, L’Enfant Plaza in
Washington D.C., for € 60.9 million in August
2001.This property, which had been part of the
Corio portfolio since 1996, comprises 24,500 m2
of office space and 298 parking spaces.The sale
price was in excess of the year-end 2000
appraisal value.With the sale of this property,
all of Corio’s commercial real estate investments
are now located in Europe and one of the
company’s major strategic aims was achieved.
38
Residential property
In 2001 two-thirds of the residential portfolio
with a total book value of € 86.3 million was
sold.The sale price achieved exceeded their
appraisal value as at year-end 2000. As originally
announced in October 2000, the remainder of
the portfolio of residential property, with a value
of only € 42.8 million, will be sold by the end
of 2002.
39
Annual Accounts 2001
Consolidated balance sheet
after proposed profit appropriation as at 31 December
(x € million)
ASSETS
Investments in property
Current assets
Receivables
Cash and banks
Other current assets
EQUITY AND
LIABILITIES
Shareholders’ equity
Issued capital
Share premium reserve
Revaluation reserve
General reserve
Current liabilities
42
2000
3,470.3
2,705.2
48.9
20.4
3.4
92.7
16.5
5.4
114.6
72.7
3,584.9
2,777.9
639.3
936.6
-165.9
235.4
668.5
888.0
-64.6
302.3
Provisions
Loans
Long-term loans
Short-term loans
2001
1,794.2
1,645.4
50.5
17.9
618.4
277.6
918.4
512.0
1,430.4
896.0
309.8
218.6
3,584.9
2,777.9
Consolidated profit and loss account
(x € million)
Income from investments
Gross rental income retail
Gross rental income offices
2000
2001
64.0
104.3
141.2
108.6
249.8
168.3
Operating expenses
-45.2
-34.5
Net rental income
204.6
133.8
Expenses
Administrative expenses
Interest
Corporate tax
Minority interests
Movements in the reserves as a result of
Revaluations
-6.5
-27.2
-
-11.4
-44.6
-0.2
-56.2
-33.7
-
-0.2
148.4
99.9
106.1
-5.8
3.0
-2.8
111.0
-4.7
-0.1
-4.9
101.3
100.5
249.7
200.4
2.16
2.18
2.28
1.56
3.84
4.34
43
Consolidated cash flow statement
(x € million)
Cash flow from investment activities
Property acquisitions/investments
Proceeds of divestments of properties
Changes in provisions
Movements in receivables
Movements in other current assets
Movements in current liabilities
2000
2001
99.9
-906.0
145.8
-2.8
12.7
-1.3
-1.9
148.4
-918.9
269.7
27.9
-4.9
-43.8
-2.0
79.0
-653.6
-444.6
Cash flow from financing activities
Dividend paid
Shares issued
Increase in long-term loans
Increase in short-term loans
Repayment of short-term loans
Buy-out of minority interests
44
-38.8
611.2
68.1
73.9
-35.4
-5.4
-62.3
-26.2
357.0
225.5
-51.1
442.9
673.6
Net cash flow
-1.7
20.0
Exchange differences and other movements
-2.2
0.4
Decrease/increase in cash
-3.9
20.4
Notes to the consolidated annual accounts
General
In 2001 Corio took a significant step in its strategy to expand in Europe with focus on retail.
Following the merger with Winkel Beleggingen Nederland B.V. (WBN) in 2000 (the assets and
liabilities and the results of WBN have been included in the consolidated annual accounts of
Corio N.V. as from 1 October 2000) this year Corio acquired Foncière Européenne de l’Etoile S.A.
(F.E.E.) and Trema S.A. and their subsidiaries.With this acquisition Corio obtained high quality
shopping centres in France, Italy and Spain.The transaction has been accounted for by the purchase
method.The assets, liabilities and results of F.E.E. S.A. and Trema S.A. have been included in the
consolidated annual accounts of Corio N.V. as from 9 November 2001.
The company has made use of the exemption as provided by section 402 of Part 9, Book 2,
of The Netherlands Civil Code.
The consolidated annual accounts are drawn up in conformity with the financial reporting
requirements of Part 9, Book 2 of The Netherlands Civil Code.
Principles of consolidation
The assets, liabilities and results of the group companies are included in full in the consolidated
annual accounts. Other interests are consolidated on a pro-rata basis.
Assets and liabilities denominated in foreign currencies are translated at the rates of exchange
applying on the balance sheet date. Exchange differences on current assets and current liabilities
are credited or debited to the profit and loss account. Exchange differences on other assets and
liabilities, including foreign participating interests, are credited or debited directly to the revaluation
reserve. Results in foreign currencies are translated at the average exchange rates for
the year. An exchange rate which is relevant to Corio is that of the US dollar, for which the
exchange rate as at year-end 2001 was $ 1 = € 1.135 (year-end 2000: € 1.075) and the average
exchange rate in 2001 was $ 1 = € 1.118 (2000: € 1.086).
Principles of valuation of assets and liabilities
Assets and liabilities are stated at face value, unless otherwise indicated. Receivables are stated less
provisions for doubtful debts.
Let properties are stated at market value based on annual appraisals by independent experts.
Properties acquired during the year are accounted for at cost of acquisition plus directly related
expenses. A representative sample of the portfolio is valued each quarter. In the event of material
changes in market conditions or occupancy rate of a property between the date of valuation and
the balance sheet date, the value of the property concerned is adjusted appropriately. Property
is valued on the basis of private sale as let property, taking into account rental income and
developments in the near future. Future selling expenses are deducted in full from the valuation.
No depreciation is charged on let properties.
Properties undergoing renovation or extension are stated at cost. If market conditions require, the
valuation is adjusted upwards or downwards on the basis of parameters provided by independent
experts. Projects are only stated at a higher market value if the cost is known and leases have
been signed. In addition to costs relating to acquisition and external supervision expenses, notional
interest is charged on the basis of market interest rates, irrespective of the method of financing.
Project cost also include a sum in respect of initial vacancy of the property, unless guarantees have
45
been given by tenants.The capitalised value of notional interest and initial vacancy costs is stated at
not more than the budgeted amount.
Tangible fixed assets presented under other current assets are stated at cost less depreciation over
the useful life of the assets concerned.
Movements in the valuation of investments in property as compared with the preceding year,
measured in local currency and translated at the year-end rate, are credited or debited to the
revaluation reserve. Movements in these valuations due to exchange rate variations are similarly
credited or debited to the revaluation reserve, as are results on the sale of properties.The same
principle is applied to value adjustments to long-term loans and repayment commitments in the
coming year due to exchangerate movements.
A provision is formed against the revaluation reserve for potential tax liabilities arising in the future
on the sale of property (or the company holding it).This provision is calculated on a present value
basis, taking into account the weighted average cost of capital. For retail property a holding period
of 15 years and for offices a holding period of 5 years has been applied.This valuation differs from
the principles applied in former years.This year’s extension of the portfolio in countries outside
The Netherlands has driven this change in accounting principles in 2001. Simultaneously the basis
for the calculation of the potential tax liabilities has been changed from an entity-orientation to a
property-orientation.The change in accounting principles has no material effect on the result of
2000 or shareholders’ equity as at 31 December 2000.
The 30% of administrative expenses allocated to asset management is also charged to the revaluation
reserve.
Purchased own shares are charged to the share premium reserve and the general reserve at acquisition
cost.The amount by which the purchase price exceeds the fiscal cost is charged to the general
reserve.
Principles of determination of results
Gross rental income comprises the rents invoiced in the financial year, net of turnover tax.
The company and the majority of its subsidiaries in The Netherlands file a corporation tax return
as an investment institution within the meaning of section 28 of the Corporation Tax Act (Wet
op de Vennootschapsbelasting 1969). Subject to the requirements of the Act being met, no Dutch
corporation tax is due. Subsidiaries, which are not investment institutions within the meaning of
the Tax Act, are subject to corporate income tax in accordance with the regulations prevailing in
the country of registration.
The indirect investment result represents the increase or decrease in the revaluation reserve due to
the revaluation of the property portfolio, including results on sale, taking account of any deferred
tax liabilities or exchange differences on shareholders’ equity invested in foreign currencies and the
allocated administrative expenses.
The result per share is determined by dividing the result by the average number of issued shares
(65,159,862), excluding shares repurchased by the company.
46
Notes to the consolidated balance sheet
Investments in
property (x € million)
2000
2001
Retail
Offices*
Total
Retail
Offices*
Total
1,442.9
1,262.3
2,705.2
438.0
999.0
1,437.0
856.1
-26.7
60.5
-
62.8
-243.0
50.5
4.9
918.9
-269.7
111.0
4.9
956.1
48.8
-
336.8
-145.8
57.3
15.0
1,292.9
-145.8
106.1
15.0
Position as at 31 Dec.
2,332.8
1,137.5
3,470.3
1,442.9
1,262.3
2,705.2
The Netherlands
France
Italy
Spain
Other
1,222.8
537.5
348.9
223.6
-
762.5
298.9
57.0
19.1
1,985.3
836.4
348.9
280.6
19.1
1,073.4
234.9
134.6
-
837.9
297.3
16.8
110.3
1,911.3
532.2
151.4
110.3
Position as at 31 Dec.
2,332.8
1,137.5
3,470.3
1,442.9
1,262.3
2,705.2
Position as at 1 Jan.
Acquisitions/Investments
Divestments
Revaluations
Investments in property as at 31 December 2001 includes a sum of € 97.9 million (2000: € 80.9
million) in respect of renovation and extension projects. € 9.0 million of the revaluations can be
considered as having been realised.
Receivables (x € million)
Debtors
Taxation
Other receivables
Prepayments and accrued income
2000
2001
6.3
21.3
17.1
4.2
17.9
13.6
55.5
5.7
92.7
48.9
Other receivables includes an amount of € 33.4 million in respect of properties sold. € 1.9 million
(2000: € 2.3 million) of other receivables relates to receivables with a term of more than one year.
* offices also includes industrial and residential properties.
47
Shareholders’ equity (x € million)
The authorised capital consists of 120 million shares of € 10. As at 31 December 2001, there were
66,854,742 issued shares in issue, of which 1,000,000 have been repurchased by the company.
Issued
capital
2001
2000
Share
premium Revaluation
reserve
reserve
Position as at 1 January 2001
2000 stock dividend
Revaluations
Other movements
639.3
936.6
29.2
-29.2
-19.0
Position as at 31 December 2001
-165.9
General
reserve
Total
235.4
148.4
-150.1
75.8
-7.2
1,645.4
148.4
-150.1
75.8
-26.2
111.0
-0.1
-4.9
-5.1
-0.4
111.0
-0.1
-4.9
-4.7
668.5
888.0
-64.6
302.3
1,794.2
Position as at 1 January 2000
1999 stock dividend
Other shares issued
Revaluations
Other movements
368.5
596.4
-266.4
4.0
228.9
-4.0
382.3
231.6
99.9
-138.1
42.0
37.9
-38.1
106.1
3.0
-2.8
-5.8
930.1
99.9
-138.1
42.0
611.2
106.1
3.0
-2.8
-6.0
Position as at 31 December 2000
639.3
936.6
-165.9
235.4
1,645.4
Most of the share premium reserve is acknowledged as such for tax purposes and may be distributed
tax-free subject to certain conditions.
Provisions (x € million)
Position as at 1 January
Additions charged to the revaluation reserve
Changes as a result of acquisitions
Position as at 31 December
2000
2001
12.1
17.9
5.8
-
4.7
27.9
32.6
5.8
50.5
17.9
The provisions relate to deferred tax liabilities and tax risks and are predominantly of a long-term
nature.
48
Loans
The loans are denominated in euros.The amount of total loans falling due within the next five years
is € 1,037.5 million. Long-term loans include all debts with a term of more than one year.The
average remaining term of the long-term loans is 5.1 years and the average interest rate is 5.5%.The
average interest rate is weighted to reflect the outstanding principal sums and terms remaining until
the next interest review date. Loans totalling € 198.0 million (2000: € 5.7 million) have been secured
by a mortgage.
The loans increased in 2001 from € 896.0 million to € 1,430.4 million as a result of the Trema
acquisition. Fixed rate debt amounts to 60% and floating rate debt to 40%.
Debt overview (x € million)
Long-term loans
Short-term loans
Fixed rate Floating rate
Total
% of total
801.4
53.1
117.0
458.9
918.4
512.0
64
36
854.5
575.9
1,430.4
100
60%
40%
100%
The company uses interest rate swaps to modify its exposure to interest rate movements. As at 31
December 2001 the total amount of interest rate swaps, included in long-term loans under fixed
rate is € 154.3 million.
The market value of the loans as per 31 December 2001 amounts to € 921.1 million, including
€ 156.7 million interest rate swaps.
Current liabilities (x € million)
Taxes
Proposed dividend
Others
2000
2001
5.4
138.1
75.1
5.6
150.1
154.1
309.8
218.6
Off balance sheet commitments
Investment commitments totalling € 448.4 million had been entered into as at 31 December 2001.
In addition, guarantees have been furnished for a total of € 24.5 million. A part (approximately 63%)
of the revaluation applied to the residential property with a bookvalue of € 42.8 million at
31 December 2001 will be payable to third parties on future realisation.
49
Notes to the consolidated profit and loss account
Separation of
net rental income
(x € million)
2000
2001
Gross rental
income
Retail
Offices
The Netherlands
France
Italy
Spain
Other
Operating Net rental Gross rental
expenses
income
income
Operating Net rental
expenses
income
141.2
108.6
-25.2
-20.0
116.0
88.6
64.0
104.3
-14.0
-20.5
50.0
83.8
249.8
-45.2
204.6
168.3
-34.5
133.8
172.0
52.8
3.2
14.3
7.5
-32.5
-6.0
-0.2
-3.1
-3.4
139.5
46.8
3.0
11.2
4.1
97.2
39.2
8.4
23.5
-17.3
-6.3
-2.2
-8.7
79.9
32.9
6.2
14.8
249.8
-45.2
204.6
168.3
-34.5
133.8
Operating expenses comprises the costs which can be directly attributed to the operation of properties,
net of costs charged to tenants. It includes amongst other items: maintenance, re-letting fees, real estate
taxes, insurance premiums and property management fees.This last item includes the cost of third parties
as well as of Corio management organisations.
Administrative expenses (x € million)
Personnel
Social security charges
Pension charges
Other personnel expenses
Office expenses
Advisors, appraisals and audit
Quotation and promotion
Other management expenses
2000
2001
5.2
1.0
0.7
2.1
3.0
3.7
0.8
0.6
10.1
1.4
1.0
3.6
5.6
4.0
1.1
1.4
17.1
28.2
Charged to operations
Charged to third parties
Asset management costs
charged to revaluation reserve
50
-6.4
-1.4
-9.8
-2.1
-11.9
-7.8
-4.9
-2.8
11.4
6.5
In 2001 the group employed an average (full-time equivalents) of 159 personnel (2000: 85). At year-end,
227 staff (full-time equivalents) were employed by the group (year-end 2000: 143).
Interest (x € million)
Interest received
Interest paid
Capitalised interest
2000
2001
2.2
-31.2
1.8
2.7
-53.3
6.0
-27.2
-44.6
Capitalised interest comprises the capitalised construction interest on properties undergoing renovation
or extension.
Social
Remuneration of the
Pension
security
Total
Management Board (x € 1,000)
Salary
costs
charges
2001
Th.W.Wernink
P.A.R.J.Vismans
J.P. van Leeuwen (as from 1 July 2001)
J.Visscher (until 30 June 2001)*
284
258
127
109
51
20
36
6
11
7
14
341
289
134
159
* excluding a one-time payment of € 590
778
107
38
923
Number
of shares
Options
exercised
in 2001
Grant
price
Exercise
price
15.033
2.000
-
5.000
7.500
24.64
24.64
28.00
28.25
Shares held by
the Management Board
Th.W.Wernink
P.A.R.J.Vismans
J.P. van Leeuwen
J.Visscher
Remuneration of the
Supervisory Board (x € 1,000)
G.J. Swalef
J.D. Bax
W. Borgdorff
J.A. de Kreij (as from 25 April 2001)
Mrs. N. Kroes
G. ter Veer (until 25 April 2001)
B.Vos
G.Wieringa
Remuneration
2001
Number of shares as
at 31 December 2001
24
19
16
12
16
4
16
16
6.283
500
123
6.783
As at 31 December 2001, the members of the Management Board and the Supervisory Board held
no options on Corio N.V. shares. Mr Wernink was granted 10,000 stock appreciation rights at a price
of € 24.65 which may be exercised until 1 March 2005.
51
Company balance sheet
after proposed profit appropriation as at 31 December
(x € million)
ASSETS
Investments in group companies
Receivables
Tangible fixed assets
Cash and banks
2000
2001
2,154.4
1.0
1.7
-
2,424.9
3.2
1.4
144.0
2,157.1
2,573.5
EQUITY AND
LIABILITIES
Long-term loans
Short-term loans
Current liabilities
1,645.4
114.1
189.1
208.5
1,794.2
394.6
231.9
152.8
2,157.1
2,573.5
Company profit and loss account
(x € million)
Company result
Results of participating interests
52
2000
2001
-13.2
113.1
-14.1
162.5
148.4
99.9
Notes to the company financial
statements
Principles of valuation and determination of results
The principles of valuation and determination of results are identical to those for the consolidated
financial statements.The consolidated financial statements are part of the notes to the company
financial statements.
Investments in group companies are stated at net asset value, applying the valuation principles
referred to above. Pursuant to section 379, subsection 5 of Part 9, Book 2, of The Netherlands Civil
Code, a list of the legal entities in which capital is invested directly or indirectly has been filed with
the Utrecht Trade Register.
Notes to the company balance sheet
Investments in group companies (x € million)
Position as at 1 January
Acquisitions
Valuation differences
Results of participating interests
Other movements
2001
2000
2,154.4
1,313.5
616.5
105.4
113.1
5.9
0.3
104.7
162.5
3.0
Position as at 31 December
270.5
840.9
2,424.9
2,154.4
For details of shareholders’ equity and movements in this item reference is made to the notes to the
consolidated balance sheet.
Long-term loans
The long-term loans relate to long-term finance provided by group companies.
Current liabilities (x € million)
Credit institutions
Proposed dividend
Other
2000
2001
63.5
138.1
6.9
150.1
2.7
152.8
208.5
53
Contingent liabilities
Corio N.V. has issued a guarantee pursuant to section 403 of Part 9, Book 2, of The Netherlands
Civil Code in respect of several of its subsidiaries (dochtermaatschappijen) in The Netherlands.
Notes to the company profit and loss account
Results of participating interests represent the share of the net results of these enterprises, taking
into account any taxes due on the results.
The Supervisory Board
54
The Management Board
Other information
Profit appropriation
Auditors’ report
The appropriation of profit is subject to the
provisions of Article 30 of the Articles of
Association, paragraph 2 of which states that
the profit shown by the profit and loss account
as adopted by the General Meeting is at the
disposal of the General Meeting.
Introduction
We have audited the 2001 accounts, page 41 to
54, of Corio N.V., Utrecht.These accounts are
the responsibility of the company’s management.
Our responsibility is to express an opinion
on these accounts based on our audit.
It is proposed that a dividend be distributed
from the 2001 result of € 2.28 per share in cash
or, at the shareholder’s option, € 1.82 (80%) per
share in cash, together with a stock dividend
charged to the share premium reserve, which
shall have a value of at least € 0.46 (20%) per
share.
Scope
We conducted our audit in accordance with
auditing standards generally accepted in The
Netherlands.These standards require that we
plan and perform the audit to obtain reasonable
assurance as to whether the accounts are free
of material misstatement.The audit includes
examining, on a test basis, evidence supporting
To the extent that the amount payable in respect the amounts and disclosures in the accounts.
The audit also includes assessing the accounting
of dividend, as a consequence of the issue of
principles used and significant estimates made
shares in 2001 exceeds the direct investment
by management, as well as evaluating the overall
result, the difference will de charged to the
financial statement presentation.We believe that
general reserve.
our audit provides a reasonable basis for our
opinion.
Transactions with parties holding
direct interests
The members of the Supervisory Board and the
Management Board of Corio N.V. had no
personal interest in the company`s investments
during the 2001 financial year.
Opinion
In our opinion, the accounts give a true and
fair view of the financial position of the
company as at 31 December 2001, and of the
results for the year then ended in accordance
Stichting Pensioenfonds ABP qualifies as a major with accounting principles generally accepted
investor as defined in the Investment Institutions in The Netherlands and comply with the
Supervision Decree (Besluit toezicht beleggings- financial reporting requirements of part 9,
instellingen).
book 2, of The Netherlands Civil Code and
the Wet toezicht beleggingsinstellingen
(Investment Institutions Supervision Act).
Amsterdam, 21 March 2002
KPMG Accountants N.V.
55
Organisation and addresses
DENMARK
Copenhagen
IRELAND
Dublin
U. K.
Rotterdam
London
NETHERLANDS
Berlin
Amsterdam
GERMANY
BELGIUM
P
Bruxelles
Prague
LUXEMBOURG
CZECH
Paris
Vienna
FRANCE
AUSTRIA
Bern
SWITZERLAND
Ljubljana
SLOVENIA
Grenoble
Brat
HU
Zagreb
CROATIA
Modena
BOSN
Sara
ANDORRA
PORTUGAL
Madrid
R
Li b
Market Research
Tax
Communication
Legal
Human Resource Management
Corio
Nederland
Retail
Control
Management
Board
Corio
Nederland
Kantoren
Treasury
Information Technology
Corio
France
Corio
Italia
Corio
España
Adressess and contacts
Corio N.V.*
Thom.W.Wernink, Chairman
Vliegend Hertlaan 9-11, 3526 KT Utrecht
P.O. Box 8441, 3503 RK Utrecht,The Netherlands
T +31 30 282 93 00, F +31 30 281 72 31
Corio France
Andrew D. Percival, Managing Director
120 Avenue Charles de Gaulle
92200 Neuilly sur Seine, France
T +33 1 474 53 000, F +33 1 474 55 850
Corio Nederland Retail*
Gerard H.W. Groener, Managing Director
Hoog Catharijne,Vredenburg 138, 3511 BG Utrecht
T +31 30 234 64 64, F +31 30 233 35 78
Corio Italia
Ermanno Niccoli, Managing Director
Via Fabio Filzi 25/A
20124 Milan, Italy
T +39 026 69 63 49, F +39 026 69 77 11
Corio Nederland Kantoren*
Jan Visser, Managing Director
Vliegend Hertlaan 9-11, 3526 KT Utrecht
T +31 30 282 93 00, F +31 30 281 72 32
Corio España
John Sanders, Managing Director
C/Goya, 59, 2°-2,
28001 Madrid, Spain
T +34 91 426 17 77, F +34 91 345 56 44
* Please see inside back cover for new addresses as of 1 July 2002
56
ITALY
Five-year review
(x € million)
2001
2000
1999
1998
1997
Net rental income
Expenses
204.6
-56.2
133.8
-33.9
102.9
-22.0
102.8
-25.4
94.9
-27.4
148.4
99.9
80.9
77.5
67.5
Revaluations
111.0
-4.7
-0.1
-4.9
106.1
-5.8
3.0
-2.8
68.7
-4.8
10.5
-2.0
57.1
-2.0
-5.3
-1.9
7.4
13.3
-1.9
101.3
100.5
72.4
47.9
18.8
249.7
200.4
153.3
125.4
86.3
3,470.3
3,584.9
1,794.2
2,705.2
2,777.9
1,645.4
1,437.0
1,492.2
930.1
1,263.4
1,303.4
857.0
1,271.4
1,307.7
808.3
Shares issued (x € million)*
- year-end
- average
65.9
65.2
63.9
46.2
39.4
39.4
39.4
39.6
39.4
39.1
2.28
1.56
2.16
2.18
2.05
1.84
1.95
1.21
1.73
0.48
3.84
4.34
3.89
3.16
2.21
27.25
25.74
23.61
21.74
20.5
2.28
1.82
**
2.16
8.33%
2.05
8.00%
1.95
6.67%
1.70
6.52%
29.50
21.50
24.90
28.10
24.00
27.00
29.35
24.50
26.80
27.00
23.05
27.00
25.28
20.92
23.28
91,049
76,134
102,651
69,694
127,224
Investments in property
Balance sheet total
Dividend
- in cash, or
- in cash, plus
shares charged to the share premium reserve
Share price, high
Share price, low
Share price, year-end
Average stock exchange turnover
(per day, purchases and sales)
* net of repurchased own shares
** ratio to be determined on 17 May 2002
57
Property portfolio
as at 31 December 2001
a Description
b Year of acquisition
c Year of construction/
renovation
d Lettable area
e Parking spaces
f Occupancy rate
g Book value (x € million)
h Annual rent (x € million)
i Market rent (x € million)
j Major tenants
k Rent conditions
Unless otherwise stated, all properties are freehold. Rents and areas are stated at 100%, irrespective of Corio’s interest.Where
less than 100%, Corio’s interest is given in brackets.The annual rent is the contractual annual rent applying at the end of the
year. In the case of unlet property, the current market rent is taken as the annual rent.The occupancy rate reflects the rent
situation as at year-end. Only properties with a market value of € 5 million or more are stated separately.
Retail
The Netherlands
Alkmaar
Almelo
Almere
Alphen a/d Rijn
Amersfoort
Amstelveen
Amsterdam
Arnhem
Capelle a/d IJssel
Delft
Den Haag
Dordrecht
Goirle
Heerhugowaard
Heerlen
Hengelo
Hoofddorp
Leek
Leeuwarden
Maastricht
Leiderdorp
Nieuwegein
Oegstgeest
Rijswijk
Rotterdam
Spijkenisse
Tilburg
Utrecht
Veldhoven
Velsen
58
Year of
construction/
renovation
Europaboulevard 26-28
Binnenhof 1-49, ‘Schelfhorst’
Stadhuisplein/Stationsstraat/Stadhuisstraat, ‘t Circus’
Stationspl./Stationsstr./Buspl./ Metropolestr.,
‘Stadshart’
De Aarhof 1-75, ‘De Aarhof ’
Emiclaerhof/De Beurs/Het Masker, ‘Emiclaer’
Groenhof 113-164, ‘Groenhof ’
Arenaboulevard, ‘ArenA Arcade’
Arenaboulevard, ‘Villa ArenA’
Reigersbos 1-192 etc., ‘Reigersbos’
Hanzestraat 1-225 etc., ‘Presikhaaf ’
Picassopassage 1-38, ‘De Scholver’
Martinus Nijhofflaan 1-19
Het Kleine Loo 198-456, ‘Het Kleine Loo’
P.A. de Kokplein 93-173, ‘Sterrenburg’
De Hovel 10-11, 19
Middenwaard 1-129/Parelhof 80-108, ‘Middenwaard’
Saroleastraat 3-51, ‘Corio Center’
Brinkstraat/Marskant/Markt, ‘De Brink’
Muiderbos, ‘Het Paradijs’
De Schans, ‘Liekeblom’
Tijnjedijk 76 (1-10)
Franciscus Romanus
Elisabethhof 1,4,8,9, ‘Meubelplein Leiderdorp’
Plein/Passage/Markt/Boogstede/Raadstede,
‘Cityplaza’
Irislaan 45-99/Lange Voort 1-24, 11-41,‘Lange Voort’
In de Bogaard J 5-J 67, ‘In de Bogaard’
Schorpioenstraat/Pegasusweg,
‘Alexandrium I’ (leasehold)
Hadewychplaats 2-62, ‘Maaswijk’
Nieuwstraat 105-211, ‘De Kopspijker’ (leasehold)
Emmapassage 1-26, ‘Emmapassage’
Drommedarislaan 11-15/Hollantlaan 2-14
Stationstraverse etc., ‘Hoog Catharijne’ (leasehold)
Meent 1-83/Meiveld 174, ‘City Passage’
Galle Promenade etc., ‘Velserbroek’
Year of
acquisition
Lettable
area (m2)
Parking
places (no.)
1984
2000
1988
2000
2000
1992
3,200
5,400
4,900
202
1998
1992
1994
1972
2001
2001
1982
1984
1983
1971
1968
1990
1997
1975
1998
1999
1986
1988
1973
1981
1986
2000
1994
2000
2000
2001
2001
2000
2000
2000
2000
1999
2000
2000
1994
2000
2000
2001
2001
2000
2000
2000
12,700
8,700
18,700
6,600
4,100
45,900
10,300
30,800
6,300
3,800
8,100
12,600
3,500
22,900
17,900
16,400
5,400
4,300
7,400
8,600
14,100
1983
1974
2001
2001
2000
2000
2000
1994
28,000
8,600
12,400
39,400
1996
1988
1991
1988
1975
1995
1994
2000
1994
1992
1994
2000
2000
2000
4,300
4,800
5,300
12,700
57,700
7,400
8,600
178
172
236
170
208
450
374
600
275
130
98
1,350
320
325
3,730
Annual rent Occupancy
(x € million)
rate (%)
0.5
0.8
1.2
100
100
100
2.5
2.2
3.4
1.3
0.5
5.4
1.7
3.3
1.1
0.7
1.2
2.0
0.4
4.3
3.0
2.9
0.9
0.5
0.8
0.4
1.0
100
100
100
100
100
100
100
99
98
100
100
99
100
100
100
99
95
97
100
100
100
5.4
1.2
2.0
10.8
100
100
100
100
0.7
1.1
1.4
0.6
20.9
1.7
1.4
100
100
100
100
99
99
100
Turin, Le Gru a super-regional shopping centre
b 2001 c 1994 d 32,000 m2 e 4,700 f 98%
g € 173.5 h € 11.5 i € 12.5 j Media World,
La Rinascente, Top Food k long-term leases with
an expiration of 5 to 12 years
Utrecht, Hoog Catharijne a shopping centre
in the city centre, with a city and regional function
with offices b 2000 c 1975 d 57,700 m2 shopping
gallery and 46,900 m2 offices e 3,730 f 99%
g € 239.7 h € 28.3 i € 29.0 j retail: Miss Etam,
Xenos, H&M, Coltex. offices: NS, USZO, ANOZ
k long-term leases with an expiration of 5 to 10
years
Year of
construction/
renovation
Voorburg
Wassenaar
Wateringen
Zaandam
Zeist
Zoetermeer
Kon. Julianalaan 263-267b, ‘Julianabaan’
Langstraat 142-154
Vliethof 1-16, 57-62, 87-94, ‘Vliethof ’
Ankersmidplein 1-9/ Parkeergarage Rustenburg
Emmapl. 1-29, 210-252 etc., ‘Belcour’
Hannie Schaftrode 2-146 etc., ‘Buytenwegh’
1998
2000
1997
1973
1996
1978
Year of
acquisition
Lettable
area (m2)
2000
2000
2000
2000
2000
2000
3,500
1,700
4,200
3,400
6,900
5,500
Properties (34) with a market value of less than € 5 million
Total Retail The Netherlands
Parking
places (no.)
74
680
(x € million)
rate (%)
0.5
0.3
0.6
0.8
1.5
0.7
95
100
100
76
82
97
72,100
382
8.6
94
569,100
9,954
102.1
98
876
1,275
363
4.0
2.2
0.9
1.6
1.5
7.0
2.5
4.5
1.6
0.4
2.3
0.5
3.2
99
100
81
100
100
100
98
89
100
100
98
100
90
17
0.8
96
1.7
96
France
Caen
Mondeville, ‘C.C. Mondeville 2’
Avenue du Maréchal Juin, ‘C.C. Côte de Nacre’
Cherbourg
Centre Commercial Carrefour
Cotentin
Dijon
Rue de la Liberté, ‘Au Pauvre Diable’
Grenoble
55, Grand’Place, ‘C.C. Grand’Place’
Issy les Moulineaux
3, Alleé Sainte Lucie, ‘Les Trois Moulins’
Ivry-sur-Seine
30, Boulevard Paul Vaillabt, ‘Ivry Grand Ciel’
Laval
46, Avenue de Latre de Tassigny, ‘La Mayenne’
Metz
Rue Serpenoise, ‘Printemps’
Montreuil
235, Rue Ettiene Marcel, ‘La Grande Porte’
Mulhouse
54/58, Rue du Sauvage - ‘La Galerie’
Nice
15, Boulevard Général Louis Delfino, ‘C.C.TNL’
Paris
92 à 98, Rue de Provence/31 à 34,
Rue Joubert, ‘Provence Opéra’
Rouen
8, Allée Eugène Delacroix,
‘C.C. Galerie de L’Espace du Palais’
Saint-Etienne
1 à 7, Rue des Docteurs Charcot,
‘C.C. Centre Deux’
Saint Geneviève des Bois La Croix Blanche
Toulon
Rue du Murier, ‘C.C. Mayol’ (Corio interest 40%)
Total Retail France
1995
1970
1977
1989
2001
2001
1992
1997
1986
1918
1991
1989
1981
1994
1999
2001
2001
2000
1998
2001
2001
2001
2001
2001
2001
1996
12,000
28,400
6,100
6,000
4,000
40,000
6,900
27,400
7,200
12,000
6,200
10,200
7,500
1991
1999
2,100
1994
1993
11,600
1979
1980
1990
1979
2001
1994
23,400
6,700
18,900
1,500
40
1,590
3.6
0.6
4.9
97
100
99
22,400
61
1.2
94
259,000
11,204
45.0
97
567
2,017
452
1,235
671
540
59
Rotterdam, Weena Point a offices near
railway station in the city centre b 1992 c 2001
d 35,800 m2 e 393 f 98% g € 64.1 h € 5.4 i € 5.5
j Nauta Dutilh, Lyondell Chemical,Vestua Groep
k long-term leases with an expiration of 5 to
10 years
Bologna, Gran Reno a regional shopping
centre b 2001 c 1993 d 13,000 m2 e 2,700
f 100% g € 71.6 h € 4.4 i € 4.9 j Media World,
Cisalfa, La Fiera del Libro k long-term leases with
Italy
Bologna
Modena
Turin
Shopville Gran Reno
GrandEmilia
Shopville Le Gru
Year of
construction/
renovation
Year of
acquisition
Lettable
area (m2)
Parking
places (no.)
1993
1996
1994
2001
2001
2001
13,000
20,000
32,000
2,700
4,100
4,700
4.4
6.2
11.5
100
100
98
65,000
11,500
22.1
99
4,000
1.6
2.0
1.4
1.4
3.0
3.0
0.6
1.7
4.8
98
97
100
97
96
100
100
99
98
Total Retail Italy
(x € million)
rate (%)
Spain
Cáceres
Irun
Jaen
Las Palmas
Madrid
Palencia
Parla
Valencia
C/Londres 1, ‘Ruta de la Plata’
‘Parque Comercial Txingudi’
Ctra. Bailén, ‘La Loma’
Ctra. Del Norte 112, ‘La Ballena’
‘Sexta Avenida’
CC Gran Via de Horteleza
Avenida de Madrid 37, ‘Las Huertas’
C/Pinto s/n, ‘El Ferial’
CC Gran Turia
1993
1997
1991
1993
1990
1992
1989
1995
1993
2000
1999
2000
2000
2000
2001
2000
2000
2001
8,000
8,900
8,700
6,200
10,500
6,400
4,000
6,800
18,400
550
1,700
Total Retail Spain
77,900
6,250
19.5
98
TOTAL RETAIL
971,000
38,908
188.7
98
60
Nieuwegein, Cityplaza a shopping centre in
the city centre of Nieuwegein b 2000 c 1983
d 28,000 m2 shopping gallery and 6,200 m2 offices
e 98 f 100% g € 66.6 h € 6.3 i € 6.8 j Vendex,
Hema k long-term leases with an expiration of 5
to 10 years
Caen, Mondeville II a regional shopping
centre b 1994 c 1995 d 12,000 m2 e 876 f 99%
g € 65.4 h € 4.0 i € 4.7 j Casino, Pizza Paï, Etam,
Celio, Camaïeu k generally 12 year leases
Offices*
Year of
construction/
renovation
The Netherlands
Amersfoort
Almere
Amstelveen
Amsterdam
Arnhem
Breda
Capelle a/d IJssel
Den Haag
Hoofddorp
Houten
Leiden
Maarssen
Maastricht
Moerdijk
Nieuwegein
Ridderkerk
Rijswijk
Rotterdam
Utrecht
Heliumweg/Neonweg/Nijverheidsweg (industrial)
Monitorweg 1-27, ‘Tyro House’
Stationsplein 5-13, 35-41, ‘Stationade’
Prof. E.M. Meijerslaan 2
Bijlmerdreef 100-102, ‘Laanderpoort’ (leasehold)
De Boelelaan 28-30 (leasehold)
Nieuwe Hemweg 1-7 (industrial)
P. van Anrooystraat 7
Rhijnspoorplein 10-38, ‘Sarphati Plaza’
Stadhouderskade 55, ‘Willemshuis’ (leasehold)
Vijzelgracht 50/3e Weteringdwarsstraat,
‘Noortse Bosch’
Burg. Matsersingel 200, ‘Matserhuis’
Velperweg 26, ‘Velperbeek’
De Bijster 10-26, ‘De Bijster’
Rivium Quadrant 1, ‘Taurus’
Churchillplein 1
Het Kleine Loo 198-456, ‘Het Kleine Loo’
Schedeldoekshaven 101, ‘Terminal’ (leasehold)
(Corio interest 50%)
Broekermeerstraat 135 (industrial)
Jupiterstraat 82-200/Planetenweg, ‘Pluspoint’
Noordmeerstraat 20-38/Daalmeerstraat 3-21
(industrial)
Meidoornkade 10-12
Schuttersveld 9, ‘Schuttersveld’
Computerweg 1-8
Computerweg 10-20 (industrial)
Erasmusdomein 50
Transitoweg/Zeehavenweg (industrial)
Raadstede 15-27/Schakelstede 45, ‘City Plaza’
Keurmeesterstraat 20-30 (industrial)
Handelskade 49, ‘Mercurion’
Abraham van Stolkweg 62-134,
‘Kleinpolderpark’ (industrial)
Bovendijk 192-222 (industrial)
Schorpioenstraat/Pegasusweg, ‘Oosterhof ’ (leasehold)
Weena 700/Kruisplein 25, ‘Weena Point’
Europalaan 101, ‘De Drommedaris’
Europalaan 20
Godebaldkwartier etc., ‘Hoog Catharijne’ (leasehold)
* offices include also industrial and residential properties
Year of
acquisition
Lettable
area (m2)
1998
1999
1986
1986
1972
2001
1991
1999
1976
1988
1992
1991
1994
1999
2000
1994
1987
1987
1994
1988
1997
1988
1994
1994
14,800
3,500
4,700
6,900
8,500
4,000
13,700
7,700
30,200
4,000
4,500
3,900
1980
1986
1990
1987
2001
1985
1968
1998
1992
1992
1998
1994
1997
1999
19,300
4,700
4,500
5,500
3,100
19,500
4,800
1991
1985
1990
1992
1992
1992
11,000
16,900
11,900
1981
1986
1995
1988
1988
1981
2000
1983
1990
1994
1992
1992
1992
1988
1988
1997
2000
2000
1996
1994
19,700
5,700
7,500
11,200
7,800
6,700
62,200
6,200
21,200
13,500
1999
1999
1984
2001
1987
1988
1973
1994
1997
1994
1992
1994
1992
2000
18,100
19,100
7,200
35,800
3,800
6,100
46,900
Parking
places (no.)
(x € million)
rate (%)
0.7
0.4
0.5
1.1
1.1
0.8
2.2
1.4
1.7
0.8
0.9
0.6
89
100
100
100
100
100
100
100
100
100
100
100
135
106
99
100
85
398
3.1
0.5
0.6
0.7
0.5
2.2
0.5
100
100
100
100
0
100
100
133
2.0
0.8
2.7
100
100
98
1.2
0.7
1.0
1.3
0.6
0.9
2.8
0.9
1.1
1.2
80
100
100
100
100
100
100
100
94
100
1.0
0.9
1.0
5.4
0.5
0.8
7.4
100
100
100
98
100
100
100
71
102
154
90
208
17
59
63
54
1,290
119
88
107
195
109
393
34
111
61
Heerhugowaard, Middenwaard a shopping
centre in the city centre b 1994 c 1975
d 22,900 m2 e - f 100% g € 47.1 h € 4.3 i € 5.1
j Ahold, Hema, Blokker k long-term leases with
Valencia, Gran Turia a shopping centre in
the city centre b 2001 c 1993 d 18,400 m2
e 4,000 f 98% g € 50.0 h € 4.8 i € 4.8 j Century
Fun, Zara, Cortefiel k long-term leases with an
expiration of 5 to 15 years
Zeist
Zoetermeer
Year of
construction/
renovation
Year of
acquisition
Lettable
area (m2)
1987
1987
1984
1999
1984
1988
1992
1992
1999
1992
14,300
4,300
4,700
4,000
4,200
1978
1992
17,000
St. Jacobsstraat 200-500, ‘Jacobsweerd’
De Dreef 2, ‘Mooi Zeist’
Slotlaan 6-26/Jufferstraat 10-38
Europaweg 81-119, ‘Continental’
Ierlandlaan 25-35, ‘De Leeuwenhoek’
Wiltonstraat 15-31/Philipsstraat 6-40,
‘Hoornerhaghecentrum’ (industrial)
Total Offices The Netherlands
Parking Annual rent Occupancy
places (no.) (x € million)
rate (%)
196
101
79
27
194
2.6
0.6
0.7
0.5
0.6
100
100
100
100
93
0.9
100
72,900
774
6.3
94
627,700
5,691
66.6
98
France
Clamart
1, Avenue Newton, ‘Le Newton’
Courbevoie - La Défense 10, Place de Vosges, ‘Le Balzac’ (Corio interest 40%)
Les Ulis
6, Rue de la terre de Feu, ‘Terre de Feu’
Lille
45, Rue de Tournai, ‘L’Arcuriale’
Massy
ZAC du Pérou 2, 2-32,
Rue des Champarts (industrial)
Nanterre - La Défense 65, Rue des Trois Fontanot, ‘MB 9’
Puteaux - La Défense
14, Rue Hoche, ‘Kupca-C’ (Corio interest 40%)
Rueil-Malmaison
Rue Henri Sainte Claire Deville, ‘Les Fontaines’
Rue Armand et Eugène Peugeot, ‘Frères Peugeot’
St. Quentin-en-Yvelines 35-37, Boulevard Vauban, ‘Le Vauban’
1, Rue Jacques Monod, ‘Millipore’
Place des Freres Montgolfier, ‘Montgolfier’
Toulouse
7/8, Esplanade Compans Caffarelli,
‘Atria’ et ‘Espace Compans’
Toulouse - Blagnac
4, Avenue Didier Daurat, ‘Centreda et les Ailes’
Vélizy - Villacoublay
13, Avenue Morane Saulnier,
‘Le Bleriot et le Nieuport’
Total Offices France
62
1964
1989
2000
1995
1999
1988
1999
1999
13,400
15,500
3,500
15,300
273
262
171
404
1.1
5.8
0.6
2.6
100
100
100
100
1998
1991
1992
1991
1989
1992
1991
1992
1998
1990
1990
2000
2000
1997
2000
2000
56,000
9,200
11,900
10,000
7,300
5,800
5,500
5,000
611
146
274
207
144
138
200
130
3.1
3.2
4.5
2.3
2.1
0.8
0.8
0.8
100
100
100
100
91
100
100
10
1993
1990
1999
1994
8,800
14,100
132
371
1.2
1.3
97
90
1991
1990
7,800
388
1.7
100
12,800
37
0.7
80
201,900
3,888
32.6
98
Nanterre, La Défense a office building to be
renovated in 2002 b 1990 c 1991 d 9,200 m2
e 146 f 100% g € 34.2 h € 3.2 i € 3.2 j Oracle
k lease ends in April 2002
Amersfoort, Emiclaer a urban district shopping
centre b 1994 c 2000 d 18,700 m2 e 178 f 100%
g € 44.5 h € 3.4 i € 3.4 j Schuitema, Ahold
k long-term leases with an expiration of 5 to 15
years
Year of
construction/
renovation
Year of
acquisition
Lettable
area (m2)
Parking
places (no.)
1975
1992
1990
2001
4,800
16,400
49
300
0.7
2.4
98
99
21,200
349
3.1
99
13,700
347
1.5
100
864,500
10,275
103.8
98
TOTAL PROPERTY PORTFOLIO
1,835,500
49,183
292.5
98
The Netherlands
France
Italy
Spain
Germany
1,196,800
460,900
65,000
99,100
13,700
15,645
15,092
11,500
6,599
347
168.7
77.6
22.1
22.6
1.5
98
97
99
98
100
TOTAL
1,835,500
49,183
292.5
98
Spain
Barcelona
Madrid
Paseo de Gracia 85
Gran Via de Hortaleza
Total Offices Spain
(x € million)
rate (%)
Germany
Böblingen
Calwerstrasse 7
TOTAL OFFICES
1984
1994
63
Heerlen, Corio Center a shopping centre
in the city centre b 2000 c 1998 d 17,900 m2
e - f 100% g € 38.8 h € 3.0 i € 3.3 j Marktkauf,
Hema, H&M k long-term leases with an
expiration of 5 to 10 years
Concept and production
BJS/Business Media, Bloemendaal
Design and art direction
Samenwerkende Ontwerpers, Amsterdam
Photography
Maarten van de Velde,
Archive Corio
Printing
Fhp Print Consult, Amsterdam
Corio N.V.
Vliegend Hertlaan 9–11, 3526 KT Utrecht
T +31 30 282 9300, F +31 30 281 7231
64
Madrid, Gran Via de Horteleza a shopping
centre in the city centre b 2001 c 1992 d 6,400 m2
e 1,700 f 100% g € 74.5 h € 3.0 i € 2.7 j Pimkie,
Cortefiel k long-term leases with an expiration of
5 to 12 years
Profile
Leading player
Clear strategy
Corio N.V.
T +31 30 282 93 00, F +31 30 233 35 78
T +31 30 234 64 64, F +31 30 233 35 78
T +31 282 93 00, F +31 30 233 35 78
Local management
Liquidity
movements.
Dividend
III
115
110
105
100
95
90
85
80
jan
feb
mar
apr
may
jun
jul
aug
sep
oct
nov
dec
Corio vs EPRA-indices 2001
Corio
EPRA Europe
EPRA EuroZone
EPRA Netherlands
I
II
Share price/
NAV
(x € 1)
2,50
30
25
IV
V
Results in
perspective
(x € million)
Dividend
per share
(x € 1)
Occupancy rate
total portfolio
(%)
250
100
200
95
150
90
100
85
50
80
2,00
1,50
20
0
1,00
15
’97 ’98 ’99 ’00 ’01
’97 ’98 ’99 ’00 ’01
75
’97 ’98 ’99 ’00 ’01
NAV year-end
Share price year-end
’97 ’98 ’99 ’00 ’01
Profile
Leading player
Clear strategy
Corio N.V.
T +31 30 282 93 00, F +31 30 233 35 78
T +31 30 234 64 64, F +31 30 233 35 78
T +31 282 93 00, F +31 30 233 35 78
Local management
Liquidity
movements.
Dividend

Report and accounts 2001

Transcription

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