Real Estate : Important for AG Insurance?

AGEAS CLUB – 21/09/2012
Serge Fautré – Chief Executive Officer
Real Estate : Important for AG Insurance?
What is real estate?
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01/10/2012
AG Real Estate | author
Share Ownership Structure
75%
100%
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AG Real Estate | author
Real Estate Asset Allocation (30/06/2012)
Total RE investment on 30/06/2012 :
• €5.4 bn
• 9.3% of the Total Financial Investment Assets of AG
Insurance
Split by legal owners
Interparking;
1.541
AG RE group
(excl. IPK);
1.093
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AG Real Estate | author
AG Insurance;
1.287
AGI subs.;
1.470
Real Estate Asset Allocation (30/06/2012)
Split by asset type
Split by Country
JVs; 2% Others; 1%
Inventory; 4%
Housing; 2%
Warehouse;
6%
Office; 35%
Luxemburg; Nertherlands;Austria; 0,4%
1,0%
0,8%
Italy; 3,7%
Germany; 5,6%
Others; 1,9%
Spain; 5,8%
Retail; 21%
France; 14,3%
Car Parks;
28%
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AG Real Estate | author
Belgium; 66,5%
Real Estate Asset Allocation (30/06/2012)
Main Indirect investment:
Split by investment
type
-
Indirect
Invesment; 8%
Direct
Investment;
92%
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AG Real Estate | author
Befimmo sca
Ascencio sca
Warehouses De Pauw
sca
Leasinvest RE sca
ASR Dutch Prime Retail
Why does AG Insurance invest in Real Estate?
• Asset diversification in terms of risk
(liquidity/volatility)
• Long term investment
• Linked to inflation
• Attractive risk/return tradeoff
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AG Real Estate | author
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AG Real Estate | author
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AG Real Estate | author
One Group, 3 business lines
AG REAL ESTATE
Development
•
•
•
•
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Urban redevelopment
Sustainable communities
Turnkey projects
Public Private Partnership
Asset Management
•
•
•
•
AG Real Estate | author
Own account Asset Management
Third party Asset Management
Indirect investments
Property Management
Public Car Park
Management
ASSET MANAGEMENT
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AG Real Estate | author
Asset Management
1.
Real estate management for AG Insurance
•
•
•
•
2.
Purchasing
Selling
Letting
Optimizing
Retail
+/- 380.000 m²
Management and development of real estate funds
•
•
Real estate certificates: 10 with a value of 500 million EUR
2 REITs
•
•
3.
Befimmo ¹
Ascencio ²
Activities for third
parties
Property Management
•
•
11
Offices
+/- 600.000 m²
Semi-industrial
300.000 m²
AG RE PM manages 2 mio. m2 of offices, mainly for
Befimmo and AG Insurance
Devimo, leader in the management of commercial real estate
AG Real Estate | author
² Ascencio is a REIT
specialised in 'Retail
Warehouse'. Its portfolio
contains around 100 sites and
is valued at 260 million €.
Main RE assets - Offices
Stephanie Square,
Brussels
Jacqmain 53, Brussels
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Central Plaza,
Brussels
AG Real Estate | author
Main RE assets - Retail
Westland
Shopping Center,
Brussels
City 2, Brussels
Gent Zuid, Ghent
Woluwé
Shopping
Center,
Brussels
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AG Real Estate | author
Main RE assets - Warehouse
Nivelles
Kontich
Fontenay
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AG Real Estate | author
DEVELOPMENT
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AG Real Estate | author
Development : what do we do?
1. At the origin of the construction of 2 million m² of office, residential and
retail space
• AG RE Development occupies a leading position within the real
estate development market
2. A unique know-how at each stage of the project
• From initial design to occupation and sales to final investors
3. The aim of developing new high quality buildings in the best locations
• To create development margins by selling them to third parties
• To bring them in the Ageas Group portfolio with a higher yield
than the market yield
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AG Real Estate | author
Development : 4 strategic areas
1. Urban redevelopment : adapt the city to the new needs of
their habitants (with local neighbourhood, respecting heritage
buildings…)
2. Sustainable communities : selected for their surface area &
unique location, developed in close collaboration with local
authorities
3. Turnkey projects : intended to accommodate the head offices
of major companies, they meet the actual expectations of its
clients
4. Public Private Partnerships : AG Real Estate has a wellestablished expertise in DBFM operations
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AG Real Estate | author
Urban redevelopment
Silver
Tower,
Brussels
Botanic
Building,
Brussels
Anspach, Brussels
Arsenal, Brussels
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AG Real Estate | author
Sustainable communities
Carré 92,
Paris Outskirts
Parc de l’Alliance,
Brussels Outskirts
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AG Real Estate | author
Turnkey projects
Thales Communications
& Security,
Paris Outskirts
Chèque Déjeuner, Paris Outskirts
GDF Suez, Brussels
PWC,
Luxembourg
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AG Real Estate | author
Public Private Partnership
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AG Real Estate | author
Success Story : Scholen van Morgen
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AG Real Estate | author
Aim of the program
The challenge
•
Gap between
•
•
•
need for educational infrastructure and budget for educational
facilities
need for investments circa € 1.5 billion
Waiting list for schools : 10 years
The answer: investment program using DBFM-scheme
•
Design, Build, Maintain & Finance
•
165 projects within 6 years
•
625,000 m² total gross building area
•
+/- 300,000 m² of landscaping
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AG Real Estate | author
Budget vs. Waiting List
2.500.000.000
2.000.000.000
1.500.000.000
1.000.000.000
500.000.000
0
199619971998
19992000
20012002
20032004
20052006
budget
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AG Real Estate | author
2007 2008
waiting list
budget
2009 2010
2011
Legal Framework
Lenders (a.o. AG I)
Shareholders Agreement
BNP
Paribas Fortis
Delegate Developer
AG RE COPiD
50%
FScholen nv
Architects Base Team
- 1 Share
75%
AG Real Estate
Contractors
50%
50%
DBFM
Scholen van
Morgen nv
AGIOn
School Invest nv
PMV
50%
25%
+ 1 Share
SCHOOL BOARDS
Team AG RE COPiD: 50 persons
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AG Real Estate | author
Surface & regional allocation
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< 2.500 m²
80
2.500 - 4999m²
5.000-9999m²
> 10.000 m²
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01/10/2012
AG Real Estate | author
Some of the projects
MPI Zonneken – SBSO Baken - Internaat Zonneken
Gemeentelijk Technisch Instituut (Londerzeel)
(Sint-Niklaas)
KTA Heist-op-den-Berg
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AG Real Estate | author
Emmaüsinstituut (Aalter)
Thank you