compagnie immobilière de belgique - ku leuven · compagnie immobilière de belgique has existed...

annual report2007

Compagnie immobilière de belgique

Belgian All Shares Return - Index Immobel

Belgian All Shares Return - Index Immobel

Return on equity is calculated based on the average equity at the beginning and end of the financial year.

� � � � �

100

50

150

200

250

300

50

100

150

200

250

300

� � � � � � � � � �

0

5

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2004 2005 2006 2007

2002 2003 2004 2005 2006 2007 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

FinanCial inFormation

Net cash flow / Net iNcome (meur) comparisoN of immobel’s returN with the belGiaN stock market returN over 5 years

comparisoN of immobel’s returN with the belGiaN stock market returN over 10 years

IFRS 2004 2005 2006 2007

coNsolidated accouNts (meur)

operating income 198.4 150.1 232.4 176.6

Cash flow 3.4 8.2 10.3 72.2

net income, group's share 0.5 17.2 20.2 50.2

equity, group's share 165.9 181.3 194.8 206.2

market capitalization 136.1 158.3 182.4 178.1

iNformatioN per share (eur)

number of shares (thousands) at year-end 4 114 4 122 4 122 4 122

Consolidated cash flow 0.8 2.0 2.5 17.5

net consolidated income, group's share 0.1 4.2 4.9 12.2

Value of consolidated equity 40.3 44.0 47.3 50.0

net common dividend 0.0 1.1 1,5 9.0

gross common dividend 0.0 1.5 2.0 12.0

Closing price 33.1 38.4 44.3 43.2

maximum quotation 36.2 38.9 44.3 49.8

minimum quotation 30.4 33.6 37.6 36.5

returN oN equity (%)

BELGIAN GAAP 2004 2005 2006 2007

compaNy fiNaNcial statemeNts (meur)

Cash flow -1.2 9.1 -3.7 78.9

net earnings -11.0 12.4 10.2 56.8

allocated earnings 0.0 6.2 8.2 49.5

equity 171.2 177.7 179.6 186.3

4

Net financial debt includes all (current and non- current) financial debts less the treasury. 1. At 31st December 2007, the net treasury is positive.

Net cash flow2 Net income (Group’s share)

2. Net result without the non cash expenses (amorti-sation, depreciation charges, provisions ...) and the non cash income (fair value ...).

0

25

50

75

100

125

2004 2005 2006 20071

Net fiNaNcial debt / equity ratio (%)

Net cash flow / Net iNcome (meur)

0

10

20

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40

50

60

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80

2004 2005 2006 2007 d4-d5 (brussels / ixelles) - Joint venture «ael - Group t - tractebel»

2 message From tHe CHairman and tHe managing direCtor

4 KeY eVents

8 Corporate goVernanCe

18 KeY Figures

20 direCtors’ report

28 real estate marKet trends

38 oFFiCes

46 residential deVelopment

52 land deVelopment

56 proJect maNaGemeNt

60 miscellaNea

65 Consolidated aCCounts

102 statutory auditor’s report

103 CompanY aCCounts

131 statutory auditor’s reports

133 general inFormation

1

annual report 2007 Compagnie immobilière de belgique

ellipse buildiNG (brussels / schaerbeek) - art & build, montois partners

aNNual report 2007 - compaGNie immobilière de belGique

2

message From tHe CHairman and tHe managing direCtor

On 29th June 2007, JER Partners acquired the stake previously owned by Suez-Tractebel in Compagnie Immobilière de Belgique; Mr Gaëtan Piret was appointed Managing Director and, on 14th November, Baron Buysse joined the Company as Chairman of the Board of Directors. Apart from the Chairman and Managing Director, the Board of Directors is made up of Mr Thomas Wernink, Vice-Chairman, and Messrs Alastair Bell, Didier Bellens, Marc de Chassey, William Hancock, Malcolm Le May, Luc Luyten, Wilfried Verstraete and Daniel Ward as Directors.

Compagnie Immobilière de Belgique has existed for more than 140 years; 2007 was the year of relaunch; a new Managing Director, a new Chairman and a new Board of Directors are together committed to giving Compagnie Immobilière de Belgique an efficient strategy that looks to the future, while respecting its past.

Compagnie Immobilière de Belgique ended 2007 with a consolidated net profit of 50.22 MEUR, or more than dou-ble the consolidated net profit of 20.15 MEUR the previous year. The Operating result amounted to 13.09 MEUR at 31st December 2007 compared to 23.40 MEUR at 31st December 2006.

On proposal of the Board of Directors a gross interim dividend of 7.20 EUR per share, equivalent to a net amount of 5.40 EUR, has been distributed on 17th September 2007. In view of the exceptional result for the year of 2007, the Board of Directors will propose to the General Shareholders’ Meeting on 14th May the distribution of a gross final dividend of 4.80 EUR per share, or a net amount of 3.60 EUR, on 19th May 2008.

Compagnie Immobilière de Belgique disposed of the property company owning Campona Shopping Center, located in Budapest, to ING Property Fund Central and Eastern Europe. The shopping centre was valued at 110 MEUR.

For the first time in many years, the Balance Sheet at 31st December 2007 shows a positive cash situation following the sale of the projects (or property companies of the projects): Campona Shopping Center, Ellipse Building, Crown Avenue and WestSide Village.

Considering the results for the year 2007 and the strong balance sheet structure of the Company, the Board of Directors is examining , taking into account the Business Plan proposed by the Management, the adequate financial structure as to assure a lasting and beneficiary growth, to the benefit of all the Shareholders.

Elsewhere, the Group is actively following up promising development opportunities that arise or that may be presen-ted to it in both Belgium and Luxembourg.

messaGe from the chairmaN aNd the maNaGiNG director

3

Gaëtan piret managing director

baron buysse chairman of the board of directors

The projects in the portfolio enable these new opportunities to be analysed while maintaining rigorous investment criteria. Indeed, Compagnie Immobilière de Belgique is market leader in Belgium with projects, at different sta-ges of completion, which should result in the construction of around 300,000 m² of Office space and 225,000 m² of Residential accommodation over the next few years. In addition, the Land Development department also owns some 270 ha of land.

These various Group projects will be developed in line with market needs.

We would like to thank our partners and customers for their trust, the good relationships we have been able to main-tain with them and the fruitful collaboration that binds us together.

We would also like to thank the Shareholders for the confidence they have shown in Compagnie Immobilière de Belgique.

Finally, we thank the managers and operational teams in the Group and all our staff who are dedicated to working with passion and professionalism in the Company’s interest.

Gaëtan Piret Baron Buysse CMG CBE Managing Director Chairman of the Board of Directors


4

campoNa shoppiNG ceNter (budapest - hungary)

- hungaro austro plan

key eveNts

5

KeY eVents

Among the projects contributing to the results for 2007, four projects are to be emphasized, notably :

CAMPONA SHOPPING CENTER Compagnie Immobilière de Belgique sold the company CAMPONA ‘99 Kft, its 100 % subsidiary and owner of Campona Shopping Center, located in Budapest, to ING Property Fund Central and Eastern Europe. The shopping centre was valued at 110 MEUR.

Inaugurated in September 1999, it was constructed and developed on a 10 ha site to a very high quality standard. It has close to 40,000 m² of lettable space and comprises a dozen large units including a cinema complex and a Tropicarium, along with 155 retail units. Its attractiveness has been confirmed by its average weekly footfall of 175,000 persons. The site was the subject of several major and complementary developments. In addition to the shopping centre, this includes the integration of the neighbouring Tesco hypermarket, the new Cultural Centre of the XXIInd District, the Campona Media Center built around an office building, television stu-dios and an events complex and a MacDonald’s drive-in, as well as a Shell petrol station.

With this transaction, Compagnie Immobilière de Belgique completes its development of this 20 ha site that it acquired in 1993 in the XXIInd District, in the built-up area south of Budapest.


6

This project, with a surface area of 48,000 m² was developed in partnership with Fortis Real Estate and was sold to the Fortis Group in 2007.

60% (26,774 m²) of the space had previously been let to the Vlaamse Gemeenschap. A further 5,994 m² of office space was let to IBPT in 2007.

The architectural practices of Art & Build and Montois Partners designed this curved and luminous tower.

ELLIPSE BUILDING


key eveNts

7

This vast project with a total surface area of 31,549 m² of offices, located on avenue de la Couronne in Brussels, developed by Compagnie Immobilière de Belgique in partnership with the CFE Group through the company Crown Avenue, was disposed of to two foreign compa-nies through Bank of Ireland.

Before the disposal of the company Crown Avenue, two leases were signed with Régie des Bâtiments. These related to a total of 27,632 m² of offices and 257 car parking spaces to be occupied by the Federal Police.

Plans for the entire project, which is highly functional, were prepared by the architectural practices ASSAR, A.2R.C and AVA.

CROwN AvENUE

ELLIPSE BUILDING

This project is composed of 6 units with a total surf-ace area of 24,000 m² of offices and 1,100 parking spaces. It is located at Mamer in the Grand Duchy of Luxembourg, not far from the motorway, allowing for easy access. It was developed by Compagnie Immobilière de Belgique and Groupe Gilbo Construct.

The company Soprima, that owns the first three buil-dings, was sold to the Belgravia Group at the end of September 2007.

The architectural practices that worked on this project were those of ASSAR Lux and Marc Ewen in collabora-tion with Brunelleschi.

wESTSIDE vILLAGE

westside villaGe (Grand duchy of luxembourg) - assar lux, marc ewen, in collaboration with brunelleschi

crowN aveNue (brussels / ixelles) - assar, a.2r.c, ava


8

Corporate goVernanCe

MEMBERS Of THE BOARD Of DIRECTORS (from 19th November 2007)Chairman Baron Buysse1 Independent

Vice-Chairman Mr Thomas Wernink2

ManagingDirector Mr Gaëtan Piret2

Directors Mr Alastair Bell3 Mr Didier Bellens3 Independent Mr Marc de Chassey2 Mr William Hancock2 Mr Malcolm Le May2 Mr Luc Luyten4 Independent Mr Wilfried Verstraete3 Independent Mr Daniel Ward3

The Secretaryship of the Board of Directors is provided by Mrs Joëlle Micha.

1. Since 14th November 2007.2. Since 29th June 2007.3. Since 30th August 2007. 4. Since 19th November 2007.

Baron Buysse is 63 years old. Following an international career in London, where he was Executive Director of BTR and Chief Executive Officer of Vickers, he is now Chair-man of Bekaert, a company that

forms part of the Bel20 index. He is the instigator of the Buysse Code for Corporate Governance for companies not listed on the stock exchange. He is Chairman of the Board of Censors of the National Bank of Belgium and Director or Chairman of other institutions.

ThomasW.Wernink is a 62 year-old member of the European Advisory Board of JER Partners. He holds a Master in General Economy from the Nederlandse School voor Economie (at Rotterdam). Until

April 2005 he was Chairman of the European Public Real Estate Association. He was also during 10 years the Chairman of the company Corio.

GaëtanPiret, was awarded a degree in commercial engineering from Université Libre de Bruxelles. Having joined Compagnie Immobilière de Belgique in 1992, he has been Managing Director since 29th June

2007. He is also an independent Director of the sica-fis (real estate trusts) Befimmo (Belgium) and Lucia (France). He was previously Managing Director of the sicafi CIBIX and Finance Director of the Thilly Van Eessel insurance broker.

corporate GoverNaNce

from left to right

and from top to bottom :

william hancock,

didier bellens,

wilfried verstraete,

marc de chassey,

malcolm le may,

luc luyten,

alastair bell,

thomas w. wernink,

Gaëtan piret,

baron buysse,

daniel ward.

9

Alastair Bell is 49. He is a gradu-ate of Nottingham Trent University with a degree in Urban Estate Surveying. He has been part of JER since 2002 as supervisor of asset management at JER Partners. He

is also responsible for the acquisitions in the PROMPT portfolio in the United Kingdom. He is a member of the European Investment Committee.

DidierBellens is 52. He obtained a diploma in Economy and Business Administration from ULB (Ecole de Commerce de Solvay) and has been Managing Director of Belgacom since March 2003. Previously, he

was CEO of RTL Group and Managing Director of GBL (Groupe Bruxelles Lambert).

Marc de Chassey is 33, he joined JER in 1999. He has a Master in International Affairs from the Institut d’Etudes Politiques de Paris (Sciences Po) and a Master in Foreign Service (Georgetown

University) with a major in Business and Finance. He is responsible for acquisitions in France, Switzerland and Spain, as well as for hotel transactions in Europe. He is also a member of the European Investment Committee of JER.

William Hancock is 40 years old, he has a degree in economics from Adelaide, and an MBA from Bocconi University in Milan. He joined JER in 2004 and is responsible for acquisi-tions in France and Benelux. In this

capacity, he is a member of JER’s European Investment Committee.

MalcolmLeMay49, holds a degree in accounting and business stud-ies from University of North Wales. He joined JER as a Partner in 2003 and is responsible for the develop-ment and execution of strategy for

JER Partners in Europe. His other main responsibilities include the supply and execution of transactions, the raising of capital and the further development of rela-tionships with investors. Malcolm Le May chairs the European Investment Committee and is a member of the Global Investment Committee. He is non-executive Director of the group Royal & Sun Alliance Insurance Plc and of Pendragon Plc.

Luc Luyten is 54. He obtained an MBA from the University of Chicago, a diploma in civil engi-neering and a degree in economic science from the University of Ghent and the Catholic University

of Leuven, respectively. He joined Bain & Company in 1986 and was promoted to Partner in 1988. He is currently Director and associate principal of Bain & Company in Benelux.

WilfriedVerstraete is 49 years old. He was educated in economics at the Vrije Universiteit Brussel, as well as obtaining a Master in finan-cial management from VLEKHO Brussels. Actually he is Chief

Financial Officer of the group Allianz Global Corporate & Specialty. He was the Managing Director of Atradius NV from May 2004 to October 2006. In that role, he sta-bilised Atradius’ position as the second most important credit insurer. He was also Chief Financial Officer of the Orange Group from January 2003 to April 2004.

DanielWard is 50. He has degrees in accounting (Villanova University) and in law (The National Law Center, George Washington University) and has worked for JER since 1991. In his capacity as General Counsel

of JER he is responsible for legal matters concerning the structuring of investments, document negotiation and transaction closing, as well as capital raising activities for the JER funds, he is also a member of the JER Fund Investment Committee and JER European Investment Committee.


10

MEMBERS Of THE COMMITTEES Of THE BOARD Of DIRECTORS

Audit Committee (sinCe 19th november 2007)Chairman Mr Wilfried Verstraete Independent

Membres Mr Didier Bellens Independent Mr William Hancock

Mrs Kirsten Deknop is responsible for the Internal Audit at Compagnie Immobilière de Belgique.

remunerAtion & Appointments Committee (sinCe 19th november 2007)Chairman Mr Didier Bellens Independent

Members Mr Marc de Chassey Mr Luc Luyten Independent

investment & Asset mAnAgement Committee (from 5th deCember 2007)Chairman Mr Gaëtan Piret

Members Mr Alastair Bell Mr Wilfried Verstraete Mr Thomas Wernink

Comments on the AppliCAtion of the poliCy estAblished by the boArd of direCtors for trAnsACtions And other ContrACtuAl relAtions - between the CompAny, inClud-ing AssoCiAted CompAnies, And the exeCutive direCtors And mAnAgers – whiCh Are not Covered by legAl provi-sions relAting to ConfliCts of interest

During 2007, two cases of transactions between

the Compagnie Immobilière de Belgique Group and

Members of personnel were subject to the applica-

tion of this procedure, as described in the Company’s

Corporate Governance Charter.

Comments on the AppliCAtion of meAsures tAken by the CompAny to respeCt direCtive 2003/6/Ce on insider trAding And mArket mAnipulAtion

The Procedure was not applied during 2007.

On 5th February 2008, in execution of article 74, §7 of the

law of 1st April 2007 relating to takeovers, JER Europe

Fund III 11 S. à r.l. indicated to Compagnie Immobilière

de Belgique that at the date of 1st September 2007 it

held 1,258,565 shares of the Company, representing

30.53 % of shares with voting rights in the Company.

This communication was made jointly with Mr Joseph

E. Roberts who indirectly controls JER Europe Fund III

11 S. à r.l..


executive management

team from left to right and from

bottom to top :

Gaëtan piret, ceo

marie-thérèse dhaenens-weyn,

head of development

paul muyldermans, head of project

management

Joëlle micha, head of corporate

affairs

pierre delhaise, head of legal services

philippe opsomer, head of finance

philippe helleputte, head of land development.

11

Mrs Joëlle Micha1 acts as Secretary General for Compagnie Immobilière de Belgique and its subsidiaries.

Following the adoption of the Corporate Governance Charter of Compagnie Immobilière de Belgique, the Board of Directors has designated Mrs Joëlle Micha as Compliance Officer.

MeMbers of executive ManageMent

Since 29th June 2007, the Executive Committee of Compagnie Immobilière de Belgique is composed of the following :

Chairman Mr Gaëtan Piret

Members Mr Michel Amand* Mr Pierre Delhaise Mrs Marie-Thérèse Dhaenens-Weyn2 Mr Philippe Helleputte Mr Paul Muyldermans3

* Mr Philippe Opsomer4 succeeded to Mr Michel Amand following his retirement in 2008.

The Secretaryship of the Executive Committee is pro-vided by Mr Pierre Delhaise.

changes in the coMposition of the board of directors and the coMMittees during 2007

MeMbers of the board of directors (froM 1st January 2007 to 19th noveMber 2007)

Chairmen Mr Manfred Loeb (up to 28th June 2007)

Mr Jean Thomas (from 29th June to 13th November 2007)

Vice-Chairmen Baron Croes (up to 29th August 2007) Mr Thomas Wernink (since 30th August 2007)

ManagingDirectors Mr Jean Thomas (up to 28th June 2007) Mr Gaëtan Piret (since 29th June 2007)

Directors Mr Xavier Bedoret (up to 28th June 2007) Mr Alastair Bell (since 30th August 2007) Mr Didier Bellens (since 30th August 2007)

Baron Bodson (up to 29th August 2007) Mr Marc de Chassey (since 29th June 2007) Mrs Marie-Thérèse Dhaenens-Weyn (up to 28th June 2007) SA Fral, represented by Mr François Le Fevere de Ten Hove (up to 29th August 2007) Mr William Hancock (since 29th June 2007) JdG Consult SPRLU, represented by Mr Jean de Garcia de la Vega (up to 29th August 2007) Mr Robert-Olivier Leyssens (up to 28th June 2007)

Mr Malcolm Le May (since 29th June 2007) Mr Nicolas Saverys (up to 29th August 2007)

Mr William Vanderfelt (up to 19th November 2007)

Mr Philippe Van de Vyvere (up to 29th August 2007)

Mr Wilfried Verstraete (since 30th August 2007)

Mr Daniel Ward (since 30th August 2007)

LiMited coMMittee (froM 1st January to 12th septeMber 2007)

Chairman Mr Manfred Loeb (up to 28th June 2007)

Members Baron Bodson (up to 29th August 2007) Baron Croes (up to 29th August 2007)

Mr Robert-Olivier Leyssens (up to 28th June 2007) Mr Nicolas Saverys (up to 29th August 2007)

Mr Jean Thomas (up to 13th September 2007)

Mr Gaëtan Piret, Director, also attends the meetings.

The Limited Committee was disbanded on 13th September 2007, when it was replaced by the Asset Management Committee and the Investment Committee.

audit coMMittee (froM 1st January to 19th noveMber 2007)

Chairman Mr William Vanderfelt Independent

Membres Mr Xavier Bedoret (up to 28th June 2007)

Baron Croes (up to 29th August 2007) Independent

SA Fral, represented by Mr François Le Fevere de Ten Hove (up to 29th August 2007) Independent

Mr William Hancock (from 30th August 2007)

Mr Wilfried Verstraete

(from 30th August 2007) Independent

ANNUAL REPORT 2007 - COmPAgNiE immObiLièRE dE bELgiqUE

1. Acting as a manager of SPRL MINOS. 2. Acting as a manager of SPRL DWCONSULT. 3. Acting as a manager of BVBA PAUL MUYLDERMANS. 4. Acting as a manager of SPRL ASAP CONSULTING.

12

remunerAtion & Appointments Committee (from 1st JAnuAry to 19th november 2007)

Chairman Baron Bodson (up to 28th June 2007) Independent

Mr Didier Bellens (from 30th August) Independent

Members Mr Marc de Chassey (from 30th August) Mr Robert-Olivier Leyssens (up to 28th June 2007) Mr Jean Thomas (up to 28th August 2007) Mr Wilfried Verstraete (from 30th August 2007) Independent

Asset mAnAgement Committee (from 14th september to 5th deCember 2007)

Chairman Mr Gaëtan Piret

Members Mr Alastair Bell Mr Marc de Chassey Mr William Hancock Mr Wilfried Verstraete

investment Committee (from 12th July to 5th deCember 2007)

Chairman Mr Jean Thomas1

Members Mr Marc de Chassey Mr William Hancock Mr Gaëtan Piret Mr Thomas Wernink

At the Board meeting of 5th December 2007, the Asset Management Committee and the Investment Committee were merged to form a single Committee, the Investment and Asset Management Committee.

REPORT Of THE ACTIvITIES Of THE MEET-INGS Of THE BOARD Of DIRECTORS AND ITS COMMITTEES

boArd of direCtors

The Board of Directors meets at the request of its Chairman or two of its Members, whenever the inter-ests of the Company require.

In principle, it meets three times per year (in March, September and December). This schedule enables the Board to consider the half-yearly accounts (in September) and annual accounts (in March), as well

as the budgets (in December). It met ten times during

2007 :

Attendance:

Mr Manfred Loeb, Chairman : 5 times / 5

Baron Buysse, Chairman : 1 time / 1

Baron Croes, Vice-Chairman : 5 times / 6

Mr Thomas Wernink, Vice-Chairman : 5 times / 6

Mr Jean Thomas, Managing Director / Chairman : 8 times / 9

Mr Gaëtan Piret, Director / Managing Director : 10 times / 10

Mr Xavier Bedoret, Director : 2 times / 5

Mr Alastair Bell, Director : 4 times / 4

Mr Didier Bellens, Director : 2 times / 4

Baron Bodson, Director : 2 times / 6

Mr Marc de Chassey, Director : 6 times / 6

SPRLU JdG Consult, represented by

Mr Jean de Garcia de la Vega, Director : 4 times / 6

Mrs Marie-Thérèse Dhaenens-Weyn, Director : 4 times / 5

Mr William Hancock, Director : 6 times / 6

SA Fral, represented by

Mr François Le Fevere de Ten Hove, Director : 5 times / 5

Mr Malcolm Le May, Director : 2 times / 6

Mr Robert-Olivier Leyssens, Director : 5 times / 5

Mr Luc Luyten, Director : 1 time / 1

Mr Nicolas Saverys, Director : 3 times / 6

Mr William Vanderfelt, Director : 5 times / 9

Mr Philippe Van de Vyvere, Director : 3 times / 6

Mr Wilfried Verstraete, Director : 3 times / 4

Mr Daniel Ward, Director : 1 time / 4

limited Committee

Before it was disbanded, the Limited Committee met

at least four times per year and in particular before the

meetings of the Board of Directors. It met twice during

2007.

Attendance:

Mr Manfred Loeb, Chairman : 2 times / 2

Baron Bodson, Member : 2 times / 2

Baron Croes, Member : 2 times / 2

Mr Robert-Olivier Leyssens, Member : 0 times / 2

Mr Nicolas Saverys, Member : 2 times / 2

Mr Jean Thomas, Member : 2 times / 2

Mr Gaëtan Piret, Director, also attended the meetings :

2 times / 2

Audit Committee

The Audit Committee meets at least twice per year

at the request of its Chairman or two of its Members,

whenever they think it necessary. It met three times

during 2007.


1. Up to 13th November 2007.

13

Attendance:

Mr William Vanderfelt, Chairman : 3 times / 3

Mr Xavier Bedoret, Member : 2 times / 2

Baron Croes, Member : 2 times / 2

SA Fral represented by

Mr François Le Fevere de Ten Hove, Member : 2 times / 2

Mr William Hancock, Member : 1 time / 1

Mr Wilfried Verstraete, Member : 0 times / 1

remunerAtion & Appointments Committee

The Remuneration & Appointments Committee meets

at least twice per year at the request of its Chairman or

two of its Members, whenever they think it necessary.

In 2007, it met eight times.

Attendance:

Baron Bodson, Chairman : 3 times / 3

Mr Didier Bellens, Member / Chairman : 5 times / 5

Mr Marc de Chassey, Member : 5 times / 5

Mr Robert-Olivier Leyssens, Member : 3 times / 3

Mr Luc Luyten, Member : 1 time / 1

Mr Jean Thomas, Member : 2 times / 3

Mr Wilfried Verstraete, Member : 4 times / 4

investment Committee

The Investment Committee meets at least once per

quarter at the request of its Chairman or two of its

Members, whenever they consider it necessary.

Prior to being disbanded, it met once during 2007.

Attendance:

Mr Jean Thomas, Chairman : 0 times

Mr Marc de Chassey, Member : 1 time

Mr William Hancock, Member : 1 time

Mr Gaëtan Piret, Member : 1 time

Mr Thomas Wernink, Member : 0 times

Asset mAnAgement Committee

The Asset Management Committee meets at least

once per quarter at the request of its Chairman or two

of its Members, whenever they consider it necessary.

It met once during 2007.

Attendance:

Mr Gaëtan Piret, Chairman : 1 time

Mr Alastair Bell, Member : 0 times

Mr Marc de Chassey, Member : 1 time

Mr William Hancock, Member : 0 times

Mr Wilfried Verstraete, Member : 1 time

CHANGES IN THE COMPOSITION Of THE ExECUTIvE COMMITTEE DURING 2007

During 2007, from 1st January to 28th June, the Executive Committee of Compagnie Immobilière de Belgique was composed of :

Mr Jean Thomas, Chairman Mr Michel Amand, Member Mr Pierre Delhaise, Member Mrs Marie-Thérèse Dhaenens-Weyn, Member Mr Philippe Helleputte, Member Mr Paul Muyldermans, Member Mr Gaëtan Piret, Member

AMOUNT Of REMUNERATION AND OTHER BEN-EfITS AwARDED DIRECTLy OR INDIRECTLy TO NON-ExECUTIvE DIRECTORS By THE COMPANy OR ANy OTHER ENTITy BELONGING TO THE SAME GROUP (ON AN INDIvIDUAL BASIS) At the meeting of the Board of Directors of 13th September 2007, it was decided to allocate an over-all sum of 400,000 EUR for the Board of Directors as a whole, based on the following allocations, included in the table prorata to the resignation or appointment of Directors : each Director : 1 share, the Chairmen of the Board of Directors and of each Committee : 1 additional share, the Managing Director : 1 additional share, each Member of a Committee : 1 additional share,

which corresponds to the calculation method used in previous years and the overall amount paid in both 2004, 2005 as well as 2006.

The table, updated following the appointment of Baron Buysse, also includes his remuneration as Chairman, at a fixed amount of 26,301 EUR for 2007. This remunera-tion also considers the fact he is invited to attend the meetings of the various Committees established by the Board of Directors.


14

COMPLETE AND DETAILED INfORMATION ON THE AMOUNT Of REMUNERATION PAID TO MEMBERS Of THE ExECUTIvE MANAGEMENT wHO ARE ALSO MEMBERS Of THE BOARD Of DIRECTORS AND wHO RECEIvE THEIR REMUNERATION IN THAT CAPACITy

ExEcutIvE DIREctoRSMEMBER

oF thE BoARDMEMBER oR

chAIRMAN oF A coMMItE

totAL

marie-thérèse dHaenens-WeYn Director up to 28/06/07 6,787.63 0.00 6,787.63

gaëtan piret DirectorManaging Director

up to 28/06/07since 29/06/07 13,341.35 19,000.51 32,341.862

Jean tHomas ManagingDirector Chairman

up to 28/06/07from 29/06/07

to 13/11/07 11,455.49 38,259.47 49,714.96

total 2 31,584.47 57,259.98 88,844.45

2. Paid by way of an insurance premium.

total 1 + 2 400,000.00


NoN-ExEcutIvE DIREctoRSMEMBER

oF thE BoARDMEMBER oR

chAIRMAN oF A coMMItE

totAL

Xavier bedoret Director up to 28/06/07 6,787.63 6,787.63 13,575.26

alastair bell Director since 30/08/07 4,326.87 3,778.41 8,105.28

didier bellens Director since 30/08/07 4,326.87 10,327.77 14,654.64

baron bodson Director up to 29/08/07 9,014.48 22,589.74 31,604.22

baron buYsse Chairman since 14/11/07 26,301.00 0.00 26,301.00

marc de CHasseY Director since 29/06/07 6,553.72 11,886.08 18,439.80

baron Croes vice-Chairman up to 29/08/07 9,014.48 18,028.96 27,043.44

sa Fral, represented by François le FeVere de ten HoVe Director up to 29/08/07 9,014.48 9,014.48 18,028.96

William HanCoCK Director since 29/06/07 6,553.72 11,886.08 18,439.80

Jdg Consult sprlu, represented by Jean de garCia de la Vega Director up to 29/08/07 9,014.48 0.00 9,014.48

malcolm le maY Director since 29/06/07 6,553.72 0.00 6,553.72

robert-olivier leYssens Director up to 28/06/07 6,787.63 13,575.26 20,362.89

manfred loeb Chairman up to 28/06/07 0.00 0.00 0.001

luc luYten Director since 20/11/07 1,674.03 1,674.03 3.348.06

nicolas saVerYs Director up to 29/08/07 9,014.48 9,014.48 18,028.96

philippe Van de VYVere Director up to 29/08/07 9,014.48 0.00 9,014.48

William VanderFelt Director up to 19/11/07 11,667.32 23,334.64 35,001.96

daniel Ward Director since 30/08/07 4,326.87 0.00 4,326.87

Wilfried Verstraete Director since 30/08/07 4,326.87 12,432.15 16,759.02

thomas WerninK vice-Chairman since 29/06/07 6,553.72 5,999.14 12,552.86

rounding -0.32 0.17 -0.15

total 1 150,826.53 160,329.02 311,155.55

1. Subject to car benefit amounting to 1,703.04 EUR.

15

Amount of remunerAtion And other benefits AwArded directly or indirectly to the mAnAging director, And the remunerAtions pAid to Any compAny represented by him, by the compAny or Any other entity belonging to the sAme group (on An individuAl bAsis)

Amount of remunerAtion And other benefits AwArded to mr GAëtAn Piret, mAnAGinG director, And to Any comPAny rePresented by him, from 29/06/2007 to 31/12/2007, excludinG the remunerAtions shown Above

Fixed fees and remuneration 157,068.93

Variable fees and remuneration 287,500.00

Other benefits 1,329.07

Total 445,898.00

Amount of remunerAtion And other benefits AwArded to mr JeAn thomAs, mAnAGinG director, And to Any comPAny rePresented by him, from 01/01/2007 to 28/06/2007, excludinG the remunerAtions shown Above




Total 451,667.96

Amount of remunerAtion And other ben-efits AwArded to mr JeAn thomAs, And to Any compAny represented by him, by the compAny or Any other entity belonging to the sAme group relAted to the period As from 29th June till 13th november 2007, dAte he resigned

Amount of remunerAtion And other benefits AwArded to mr JeAn thomAs, And to Any comPAny rePresented by him, relAted to the Period As from 29/06/2007 till 13/11/2007




Indemnity payments for ending activities 568,808.22

Total 999,550.93

mAin contrActuAl provisions relAting to the Appointment And depArture of execu-tive mAnAgers

Appointment

In respect of the appointment of executive Managers, there are no provisions other than those generally included in a contract of employment or for the provision of services.

DepArture

Depending on the role of the executive Managers, the notice period takes account of : laws in force and legal rulings, the notice period, which varies between 3 and 12 months, depending on the significance of the contrac-tual relationship.

honorAry members of the boArd of directorsHonorary Chairmen Baron de Fauconval Mr René Lamy Mr Manfred Loeb1 Mr Jean Thomas2

Honorary Managing Directors Mr Jean Thomas1 Mr Albert Vanescote

Amount of remunerAtion And other benefits AwArded directly or indirectly to members of the executive mAnAgement by the compAny or Any other entity belonging to the sAme group (on An overAll bAsis)

executive mAnAGement

fixed fees And

remunerAtion

vAriAble fees And

remunerAtion

other benefits

totAl

Members of the Executive Committee 1,103,382.53 1,039,405.57 229,980.98 2,372,769.08

The Managing Director and the other Members of the executive Management team did not receive any shares, share options or rights to acquire shares during the financial year.

1.Since29thJune2007.2.Since14thNovember2007.

ANNUAL REPORT 2007 - COmPAgNiE immObiLièRE dE bELgiqUE

17

omeGa court (brussels / auderghem) - assar


18

KeY Figures

INCOME STATEMENT 2004 2005 2006 2007

Operating income 198.4 150.1 232.4 176.6

Operating expenses -185.4 -135.1 -209.0 -163.5

operating result 13.0 15.0 23.4 13.1

Financial result -6.0 -6.3 -11.8 -6.7

Share in the income of companies accounted for by the equity method 1.7 0.8 1.7 3.8

result before taxes 8.7 9.5 13.2 10.2

Income taxes -5.4 -2.7 -5.6 -1.0

result from continuing operations 3.3 6.8 7.6 9.2

result from discontinued operations -2.8 10.3 12.6 41.0

result for the year 0.5 17.1 20.2 50.2

share of Compagnie immobilière de belgique 0.5 17.2 20.2 50.2

BALANCE SHEET 2004 2005 2006 2007

assets

non-current assets 72.4 77.4 90.7 27.3

Intangible assets and goodwill 0.9 1.0 0.1 0.0

Tangible assets and investment property 44.1 52.6 68.6 5.4

Financial assets 25.2 21.5 20.4 20.7

Other 2.2 2.3 1.7 1.2

Current assets 419.8 408.6 430.6 393.1

Inventories 245.2 283.7 302.3 224.6

Treasury 35.1 55.8 62.5 132.7

Other 139.5 69.1 65.8 35.8

total assets 492.2 486.0 521.3 420.4

equity aNd liabilities

equity 166.0 181.3 194.8 206.2

non-current liabilities 107.5 181.9 105.0 49.7

Financial debts 96.3 170.1 98.0 29.5

Other 11.2 11.8 7.0 20.2

Current liabilities 218.7 122.8 221.5 164.5

Financial debts 140.7 58.0 135.9 91.8

Other 78.0 64.8 85.6 72.7

total equitY and liabilities 492.2 486.0 521.3 420.4

SUMMARy Of CONSOLIDATED fINANCIAL STATEMENTS (MEUR)

key fiGures

19

0

5

10

15

20

25

2004 2005 2006 2007

Operating income Net income (Group’s share)

Operating cash flow Change in working capital & other Disposals

Change in borrowings Cash generated during the year Paid dividends Net financial costs Acquisitions

Return on equity is calculated based on the average equity at the beginning and end of the financial year.

coNsolidated operatiNG iNcome / Net iNcome (meur)

sources applicatioNs

returN oN equity (%)

2006 2007

treasury at begin of the year 55.8 62.5

Cash generated by :

operating activities 18.0 60.3

Operating cash flow 25.8 31.8

Change in working capital & other -7.8 28.5

investing activities 1.5 27.8

Acquisitions of fixed assets -0.9 -0.9

Disposals of fixed assets and collected dividends 2.4 28.7

Financing activities -11.9 -95.5

Change in borrowings 5.8 -50.7

Net financial costs -11.8 -6.8

Paid dividends -6.2 -37.9

Other 0.3

discontinued operations -0.9 77.7

treasury generated during the year 6.6 70.3

treasury at end of the year 62.5 132.7

SyNTHETIC TABLE Of CONSOLIDATED CASH fLOw (MEUR)

0

10

20

30

40

50

2004 2005 2006 2007

Net fiNaNcial debt / equity ratio (%)

0

25

50

75

100

125

2004 2005 2006 2007

Net financial debt includes all (current and non-cur-rent) financial debts less the treasury.

1. At 31st December 2007, the net treasury is positive

1

2007


20

direCtors’ report

Ladies and Gentlemen,

We are pleased to present you with our report on the activities during 2007 of the Company and those of the Group formed by Compagnie Immobilière de Belgique and its subsidiaries.

Compagnie Immobilière de Belgique ended 2007 with a consolidated net profit of 50.22 MEUR, a significant increase over the previous year’s figure of 20.15 MEUR.

I. BUSINESS DEvELOPMENT (art. 96 and 119, 1° of the Companies Code)

A. ACtivities of the CompAny

1. Real Estate Development

The turnover of the Real Estate Development activity in the year under review was 100.52 MEUR compared to 194.25 MEUR in 2006.

The highlights of the Real Estate activity of Compagnie Immobilière de Belgique during 2007, within the framework of the departments Offices, Residential and Land Development, were :

a) Offices :

Disposals: thecompaniesowningthefollowingprojects: - Ellipse Building (48,000 m²), located in Brussels

(Schaerbeek), to Fortis Group (50 % holding),

- Jardins de la Couronne – Offices section (31,549 m²) located in Brussels (Ixelles) (50 % holding) to two foreign companies, acting through Bank of Ireland,

- and WestSide Village - Phase I (10,596 m²), at Mamer in the Grand Duchy of Luxembourg, to Belgravia (50 % holding).

andtheprojects: - Lex (58.800 m²), located in Brussels to the Council of

Europe (50 % holding) following the signature of the official deed of sale,

- Les Mélans (4,439 m²) at Bouge to the company Editions de l’Avenir following the signature of the official deed of sale,

- Ferme des 4 Sapins – Offices section (1,330 m²) at Wavre.

Rentals: - an additional 12,000 m² of offices in the Jardins de la

Couronne building in Brussels (Ixelles), (50 % holding) to Régie des Bâtiments for a term running up to 2023,

- more than 12,000 m² of offices in the Block A com-plex in Espace Midi located in Brussels, (10 % hol-ding) to ASBL SmalS – MvM for a term of 27 years,

- 10,193 m² of offices in WestSide Village at Mamer in the Grand Duchy of Luxembourg, (50 % holding), at various 3-6-9 type leases,

- 5,994 m² within the Ellipse Building located in Brussels (Schaerbeek) to IBPT, on a 9-year lease,

- 1,512 m² in Block 9, Place des Martyrs in Brussels, to the Vlaamse Gemeenschap, on a 9-year lease.

In 2007, Compagnie Immobilière de Belgique also pro-visionally accepted :

- Ellipse Building (sold to Fortis Group),

- the D4 building developed by the company Promotion Léopold (33 % holding).

Compagnie Immobilière de Belgique also started, continued and / or completed work on the follo-wing projects, either on its own : Ferme des 4 Sapins, Mercelis, or in partnership : D4-D5, Lex, Omega Court, South Express, and WestSide Village (Eglantier).

The turnover of the Offices activity for the year under review amounted to 70.78 MEUR compared to 144.64 MEUR in 2006. The sales of the property com-panies of Ellipse Building, Jardins de la Couronne and WestSide Village are not included in the “other ope-rating income”. The Operating result amounted to 14.21 MEUR in 2007 compared to 14.29 MEUR in 2006.

b) Residential :

Sale, since 1st January 2007, of 153 apartments and 23 houses in the following projects : Jardin des Sittelles (2), Jardins de Jette (74), Jardins de Stockel (9), Place des Martyrs (2), Résidence Erpentval (1), Omega Court (9), Egmont House (1), Foncière du Parc (66), Chaussée Bara in Waterloo (3), rue Albert 1er in Genval (8) and Bon Dieu du Chêne in Walhain-Saint-Paul (1), and also the 4 commercial units in Place des Martyrs.

Compagnie Immobilière de Belgique also started, continued or completed large residential sites both on its own : Erpent, Jardins de Stockel, Mercelis, Place des Martyrs (Block 7) and, in partnership : Jardins de Jette, Foncière du Parc and Omega Court.

Planning permission has been obtained for the follo-wing projects :

- Crespel, - Esplanade 64, - Jardins de Stockel (plots 24 to 27), - Mercelis.

The turnover of this activity for the year under review was 17.87 MEUR, compared to 37.80 MEUR for the pre-vious year.

directors’ report

21

The operating result was -4.03 MEUR in 2007 compared

to 4.03 MEUR in 2006. This loss is the result of adjust-

ments in the value of certain high-risk projects whose

estimated net realisable values are less than their net

book values.

c) Land Development :

Sales of plots of land accounted for 141 transactions,

representing a net surface area of more than 13 ha

(Group share) including 3 ha of agricultural land. The

land developments that contributed most to turnover

were those at Genval, Enghien, Erpent, Polleur, Bredene,

Vedrin and Meux.

During the year, new land development and / or plan-

ning permission was obtained at Chastre, Soumagne,

Tongeren, Fléron, Ganshoren and Evere.

Work on facilities for new land developments was star-

ted or continued at Enghien, Fléron, Soumagne, Grâce-

Hollogne, Waterloo, Evere, Ganshoren and Stavelot.

Land purchases during the year came to a total (Group

share) of around 19 ha. In addition, various acqui-

sitions under conditions precedent or joint-venture

agreements or options relating to approximately 21 ha

(Group share) were completed in 2007. All of this area

is in zones that can be built on under sector plans.

Investments in the purchase of land and land develop-

ment facilities were in excess of 9 MEUR in 2007.

Finally, in 2007, Lotinvest completed an estate agency

operation located at Nieuwpoort and covering an area

of 107 ha.

The turnover of this activity for the year under review

was 10.72 MEUR against 10.84 MEUR in 2006.

The operating result earned was 3.03 MEUR in 2007 compared to 4.43 MEUR in 2006.

d) Project Management :

During 2007, Progex, supporting activity of the Offices and Residential Development, completed its assign-ments on the following projects : Ellipse Building, Jardins de la Couronne, Lex as well as Omega Court (residential part).

Progex also continued its assignments on the follo-wing : - Officeprojects: - Brusselstower, Omega Court, Mercelis, Reyers C,

Forum and the redevelopment of the site of State Administrative Centre in Brussels,

- WestSide Village in the Grand Duchy de Luxembourg.

- Residentialprojects: - Crespel, Foncière du Parc, Mercelis, and a hotel in

Place des Martyrs, Block 7, in Brussels.

Five new assignments were started in 2007, namely four residential developments, at Haren, Waterloo, Charleroi and Namur and one office project, rue de la Science in Brussels.

The consolidated turnover of this activity amounted to 1.15 MEUR compared to 0.97 MEUR in 2006; the opera-ting result amounted to -0.28 MEUR in 2007 compared to 0.13 MEUR in 2006.

Progex itself had a turnover of 2.03 MEUR compared to 2.28 MEUR in 2006.

2. Miscellanea : Reforme

During 2007, 17 sites were handed over, accounting for a total of 17,959 m² of new build and 41,266 m² of renovated space.

westside villaGe (Grand duchy of luxembourg) - assar lux, marc ewen, in collaboration with brunelleschi


22

The turnover of Reforme, the Group’s only industrial subsidiary, amounted to 33.79 MEUR compared to 34.41 MEUR in 2006; the operating results amounted to 0.17 MEUR in 2007 compared to 0.69 MEUR in 2006.

The operating result of these miscellaneous activities (those listed under points 1 and 2 above) amounted to 13.09 MEUR in 2007 compared to 23.40 MEUR in 2006.

3. Discontinued activities : Campona Shopping Center (Budapest)

Under the application of the IFRS 5 accounting standard, we present further to the sale of the company owning the Campona Shopping Center in Budapest the results of discontinued activities separately.

Please note that the sales for 2006 have been restated in accordance the same principle.

Compagnie Immobilière de Belgique sold the com-pany CAMPONA‘99 Kft, its 100 % subsidiary and owner of Campona Shopping Center, located in Budapest, to “ING Property Fund Central and Eastern Europe”. The shopping centre was valued at 110 MEUR.

With this transaction, Compagnie Immobilière de Belgique completes the development of the overall 20 ha site acquired in 1993 in the built-up area south of Budapest.

The net result of these activities amounted to 41.00 MEUR compared to 12.57 MEUR in 2006.

b. Comments on the AnnuAl ACCounts

Consolidated results

(MEuR) 31/12/2007 31/12/2006

coNsolidated Numbers

Operating income 13.09 23.40

Financial result -6.66 -11.84

Share in the results of entities accounted for by the equity method 3.79 1.68

result before taxes 10.22 13.24

Taxes -1.02 -5.64

result of continuing activities 9.20 7.60

result of discontinued activities 41.00 12.57

result for the year 50.20 20.17

group share of the result for the year 50.22 20.15

Company results and allocation of profits

Compagnie Immobilière de Belgique ended the finan-cial year with a net profit of 56.76 MEUR, compared to a net profit of 10.19 MEUR at 31st December 2006.

This result has been influenced favourably by divi-dends received from subsidiaries and the results of financial investments.

The profit to be allocated, taking into account the amount brought forward from the previous financial year, amounts to 125.43 MEUR.

The Board of Directors proposes to the Ordinary General Meeting of 14th May 2008 to declare a total gross dividend in respect of the 2007 financial year of 12 EUR per share.

As a gross interim dividend of 7.20 EUR per share was paid on 17th September 2007, the final dividend will be 4.80 EUR per share.

The profit will therefore be allocated as follows : - Total dividend for the year 49.46 MEUR, - Profit carried forward 75.97 MEUR.

The final dividend will be made available for payment on 19th May 2008 upon presentation of coupon n° 19.

Main risks and uncertainties

We would also like to make it clear that, with the exception of the risks and uncertainties inherent in the activities carried out by the Company (in particular a significant increase in interest rates, a downturn in the real estate market, changes in global economic trends, loss of interest by investors in the real estate market, a tightening of credit conditions by the banks,…) and in view of the building permits already obtained, the

directors’ report

23

Board of Directors is confident that it will obtain the necessary permits to develop the Group’s existing pro-jects and, on the basis of the information currently available, is not aware of any major risks or uncertain-ties that could significantly damage the Company’s future results.

financial and non-financial essential performance indicators

The Board of Directors indicates that, to the best of its knowledge, there is no essential financial or non-financial performance indicator that would provide a different perspective on the Group’s position than that reflected in the financial accounts and the notes thereto.

II. MAJOR EvENTS OCCURRING AfTER THE END Of THE fINANCIAL yEAR (art. 96 and 119, 2° Companies Code)

As far as the Directors are aware, no major event has occurred since the end of the financial year.

III. CIRCUMSTANCES THAT COULD HAvE A SIGNIfICANT IMPACT ON THE COMPANy’S DEvELOPMENT (art. 96 and 119, 3° Companies Code)

As far as the Directors are aware, there are currently no circumstances that could have a significant impact on the Company’s development.

Iv. RESEARCH AND DEvELOPMENT ACTIvITIES (art. 96 and 119, 4° Companies Code)

The Company did not carry out any research and deve-lopment activity during the year under review.

v. BRANCH OffICES (art. 96, 5° Companies Code)

No branch offices have been set up.

vI. JUSTIfICATION Of THE APPLICATION Of THE ACCOUNTING PRINCIPLE Of CONTINUITy wHERE LOSSES HAvE ARISEN (art. 96, 6° Companies Code)

Not applicable.

vII. INfORMATION TO BE INSERTED UNDER THE PROvISION Of THE COMPANIES CODE (art. 96, 7° Companies Code)

A. Decisions or operations with an adverse interest of a patrimonial nature (art. 524 Companies Code)

The Board of Directors indicates that, to its know-ledge, no decision has been taken and no operation has been decided upon that falls within the scope of application of article 524 of the Companies Code.

B. Recourse to authorised capital (art. 608 Companies Code)

None.

C. Acquisition or disposal of own shares (art. 624 Companies Code)

None.

vIII. USE Of fINANCIAL INSTRUMENTS (art. 96, 8° and 119, 5° Companies Code)

The Board of Directors confirms that, in application of articles 96, 8° and 119, 5° of the Companies Code, the Company used financial instruments to cover the effect of a possible increase in interest rates. The market value of these financial instruments at 31st December 2007 amounted to 0.11 MEUR.

Ix. ELEMENTS THAT COULD HAvE AN IMPACT IN THE CASE Of A TAKEOvER BID (art. 34 Royal Decree of 14th November 2007)

1° the capital structure, with where appropriate an indication of the different categories of shares and, for each category of shares, the rights and obligati-ons attached to it and the percentage of the capital that it represents;

Article 4 of the Articles of Association of 19th November 2007 states : “The share capital is fixed at 100,284,867.63 EUR, represented by 4,121,934 actions, with no nominal value, each representing one share of the share capital.”

2° any legal or statutory restriction on the transfer of shares : None.

3° the holders of any shares with special control rights and a description of those rights : None.

4° the mechanism of control provided for in the case of any system of staff share ownership when the rights of control are not exercised by the staff : None.

5° any legal or statutory restriction on the exercise of voting rights : None.

6° agreements between shareholders which are known to the issuer and which could result in res-trictions on the transfer of shares and / or the exer-cise of voting rights : None.

7° rules applicable to the appointment and replace-ment of members of the administrative organ as well as the modification of the Articles of Association of the issuer;


24

-Appointment and replacement of members :

Article 15 of the Articles of Association states that “the administration of the company’s affairs is entrusted to a board composed of at least five members, appointed by the general meeting, which also decides on the number. The duration of their mandate is four years at most. Members whose mandates have expired may immediately be re-elected.”

In addition, the Corporate Governance Charter as approved by the Board of Directors of Compagnie Immobilière de Belgique on 12th December 2005 and revised most recently on 5th December 2007 states, in particular, that “the role of the Remuneration and Appointments Committee is to formulate proposals to the Board of Directors in respect of appointments and, more specifically :

-the regular revision of the principles and criteria (independence, competence and qualifications) that govern the selection and appointment of the Directors and any recommendations for changes to the Board of Directors;

-the appointment or the re-election of Directors or Members of the Committees set up by the Board of Directors, and the appointment or dismissal of Members of the Executive Committee;

-the evolution of the management team and suc-cession planning for Members of the Executive Committee, where appropriate based on reports from the Managing Director.”

-Modifications to the Articles of Association : None.

8° the powers of the administrative organ, especially regarding its ability to issue or to buy back shares;

Article 14 of the Articles of Association states in this regard that “the company may acquire its own shares or accept them as security under the condi-tions defined by the law. The Board of Directors is authorised to dispose of shares it has acquired in the company, on the stock exchange or elsewhere, on conditions that it shall determine, with prior authorisation of the General Meeting, in accor-dance with the law.

By the decision of the Extraordinary General Meeting of the nineteenth of November two thousand and seven, the Board of Directors is aut-horised to acquire and dispose of shares of the Company where such acquisition or disposal is necessary to avoid grave and imminent danger to the Company. This authorisation is given for a period of three years from the date of its publica-tion in the Annexes of the Moniteur Belge.

directors’ report

south eXpress (brussels / saint-Gilles) - dds & partners

leX (brussels) - Jaspers, eyers & partners

25

The authorisation approved above also refers to acquisitions and disposals of shares of the Company by its direct subsidiaries, as such subsidiaries are defined by legal provisions relating to the acquisi-tion of shares by subsidiaries in their parent com-pany, and can be extended under the conditions foreseen by the law. Furthermore, by the decision of the Extraordinary General Meeting of the nineteenth of November two thousand and seven, the Board of Directors of the Company is authorised to acquire shares in the Company up to a maximum of ten per-cent of issued shares, at a price per share that may not be less than ten (10) euros nor more than twenty percent above than the highest closing rate at which the Company’s shares were quoted on Euronext Brussels during the twenty days preceding the acqui-sition. This authorisation is granted for a duration of eighteen months from the date of the Extraordinary General Meeting of the nineteenth of November two thousand and seven and also extends to the acquisi-tion of shares of the Company by one or more of its direct subsidiaries, as such subsidiaries are defined by legal provisions relating to the acquisition of sha-res by subsidiaries in their parent companies.”

9° all the major agreements to which the issuer is a party and which take effect or are modified or cease in the case of a change of control of the issuer following a takeover, and their effects, unless their nature is such that their divulgation would result in grave harm to the issuer, this exception is not applicable where the issuer is specifically required to divulge this information by virtue of other legal provisions : None.

10° all the agreements between the issuer and mem-bers of its administrative organ or its personnel, that provide for compensation if the members of the administrative organ resign or can no longer continue to perform their functions without a valid reason or if the jobs of members of staff are terminated because of a takeover : None.

x. MANAGEMENT Of THE COMPANy

The Director’s mandate of Mr Thomas W. Wernink is due to expire at the close of the Ordinary General Meeting of 14th May 2008. He is eligible for re-election and puts himself forward for your votes.

On 13th November 2007, the Board of Directors had decided to co-opt Baron Buysse as Director to provide for a replacement for Mr Jean Thomas who resigned. We propose the definitive election of Baron Buysse to complete the mandate of Mr Jean Thomas. Besides Baron Buysse is prepared to make a commitment to the Company, from now on, for a period of 4 years. Therefore, the Board of Director proposes, in view of his professional experience and to maintain the sta-bility of the Company, to appoint Baron Buysse, with immediate effect, for a period of 4 years expiring at the close of the Ordinary General Meeting to be held in 2012.

xI. ExECUTIvE COMMITTEE

The functions exercised by Mr Jean Thomas as Chairman and Member of the Executive Committee, ended on 28th June 2007.

Mr Gaëtan Piret, in his capacity as Managing Director of the Company, assumed the role of President of the Executive Committee since 29th June 2007.

xII. MANDATE

The mandate of Auditor of société civile s.f.d. SCRL DELOITTE REVISEURS D’ENTREPRISES, represented by M. Pierre-hugues Bonnefoy, also expires at the close of the next General Meeting. The Board of Directors proposes to renew its mandate for a period of 3 years expiring at the end of the Ordinary General Meeting that will be held in 2011.

Consequently, we ask you to approve the terms of this report and to discharge the Directors, as well as the Auditor.

Agreed at the meeting of the Board of Directors of 19th March 2008.


27

forum (brussels) - archi 2000


28

real estate marKet trends

THE OffICE MARKET IN THE BRUSSELS REGION, wALLONIA AND fLANDERS 2007 : OUTLOOK fOR 20081

Total take-up for 2007 closed at 527,000 m2, down 11 % on 2006 due to a weakened demand by the European Institutions. This decrease in take-up over 2007 can be attributed to a redundant demand by the European Institutions.

LETTING MARKET

key figures Total take-up for 2007 closed at 527,000 m2, down

11 % on 2006. The decrease in take-up over 2007 can be attributed to a redundant demand by the European Institutions, and in addition, weak take-up by the International Administrations. The European Union is expected to become much more active in 2008.

The vacancy rate at the end of 2007 stood at 9.8 %, down 20 bp compared to the fourth quarter 2006.

Total completions in 2007 stood at 248,716 m2, 38 % below the last five-year average of 399,000 m2.

Prime rents remain unchanged 300 EUR/m2/year, last recorded at Round Point Schuman and Square de Meeûs in the Leopold District over the first quarters of 2007. Top quartile annual rents remain unchanged over the year at 209 EUR/m2/year.

CorporAte seCtor

The corporate sector accounted for 76 % of the total take-up in 2007, totaling 401,162 m2, 19% above the last five-year average. The current political turmoil in Belgium has had no effect on corporate take-up, nor has the credit crunch impacted the economy. The banking and finance sectors continue to dominate corporate take-up (23 %). Overall, 470 corporate leases were signed in 2007, of which more than half of them were for small floor spaces of less than 499 m2.

The strength of the corporate sector can be attributed to a strong economy in 2006 / 2007 and a highly-skilled workforce. The banking and finance sectors once again

The investment market in Belgium over 2007 reached an all time high of 4.84 billion EUR, beat-ing the previous record of 4.3 billion EUR achieved in 2006. This represents an increase of 11 %. High quality assets and towers dominated the investment skyline in Brussels. Many of those towers were purchased by foreign investors. Secondary cities performed well due to a lack of prime, finished products in the office sector of Brussels. As a consequence, the diversification from the traditional office sector into the other sectors, notably into retail, was an important trend over 2007.

took the lion’s share of the letting market, accoun-ting for 20 % of the total private sector market. Major banking and finance transactions included Fortis Bank, which leased 27,716 m2 in the Manhattan Centre (North) and also took 10,528 m2 in the Botanic Building (North) during the second quarter of 2007; and KBC, which purchased the Admiral Building in the North District (9,350 m2) during the second quarter of 2007 for owner-occupation.

publiC seCtor

Demand by the European Institutions has been weak due to new procedures which delayed take-up during 2007. The European Union accounted a mere 1.3 % of the total take-up, signing only two leases in the second half of 2007, one for 7,245 m2 (the fourth quarter) and another for 126 m2 (the third quarter) in the Leopold District. The European Union is expected to become much more active in 2008. A tender process began in 2007 requiring 40,000 m2 of useable office space. The final choice of the building(s) will be made by the Commission over 2008 and it is then that we expect the European Union to absorb new space. The International Administrations accounted for 2.5 % over 2007 com-pared to 6 % over 2006, signing only three leases over the fourth quarter of totaling 1,843 m2 (Leopold). The Belgian Administrations accounted for 20 % in 2007, an increase compared to 2006 where they accounted for 14%. However, they have now come to the end of their re-organization and it is expected that they will be less active over 2008.

vACAnCy And supply

Vacancy rates now stand at 9.8 %. This year, the vacancy rate decreased to its lowest point since 2003 over the third quarter of 2007 at 9.5 %.

Total completions in 2007 stood at 248,700 m2, 38 % below the last five-year average of 399,000 m2.

real estate market treNds

1. Source : Jones Lang LaSalle.

29

rents

Prime rents now stand at 300 EUR/m2/year, last recorded at Round Point Schuman and Square De Meeûs in the Leopold District in the first quarter of this year. Compared to prime rents achieved in the fourth quarter of 2006 of 295 EUR/m2/year that represents an increase of 1.6 %. Incentives in the Central Business District (hereafter CBD) are increasing, whereas out-side, they remain unchanged. At the end of 2007, top quartile annual rents remained stable over the whole year at 209 EUR/m2/year. Weighted average annual rents decreased over the quarter from 169.68 EUR/m2/year to 162.25 EUR/m2/year.

INvESTMENT MARKET

The investment market in Belgium over 2007 reached an all time high of 4.84 billion EUR, beating the pre-vious record of 4.3 billion EUR achieved in 2006. This represents an increase of 11%.

Investment levels in Europe reached approximately 220 billion EUR by the end of 2007 compared to the

2006 record 253 billion EUR. In 2008, a slowdown will

likely see total investment figures shrink to around

170-180 billion EUR, down almost 25% on 2007.

offiCes

The strong run-up over the first half of 2007 remained

in line with the preceding record year of 2006 for the

investment market in Belgium.

First half of 2007, investment levels stood at

2.6 billion EUR, that compared to the first half of 2006

level of 1.7 billion EUR, which represents an increase of

50 %. The most notable investment deal of size to take

place over the first half was within the office sector and

was the sale of the Zenith Tower at 125 MEUR a specu-

lative, high quality asset due to be delivered in 2009.

Developed by Codic, it was sold to MEAG, a German

open-ended fund on a forward-funding basis. Over

the second half of the year, total investment remained

strong and stood at just over 2.23 billion EUR, bringing

the 2007 total to 4.84 billion EUR.



e40 Ghent

a12 Antwerp

e19 Antwerp

e411 Luxembourg

e40 Liège

surrounding areaRing RoadZaventem

CbdNorth DistrictCity CentreLeopold DistrictLouise District

decentralised area

Belgian Administrations European Union International Administrations Corporates

Gross office take-up (m2) iN brussels by sector

0

100

200

300

400

500

99 00 01 02 03 04 05 06 07 99 00 01 02 03 04 05 06 07 99 00 01 02 03 04 05 06 07 99 00 01 02 03 04 05 06 07

30

The largest single-asset deal of size over 2007 in the

office sector was the purchase of Covent Garden

(69,000 m2) by Evans Randall for 272 MEUR from

Buelens and KBC. 20 % of the building is let to the

European Community with the remaining 55,000 m2

delivered during the fourth quarter of 2007.

Other notable deals included the Bastion Tower, which

was sold during the third quarter 2007 by Union

Investment, formerly DIFA, to ING for 142 MEUR. The

sale of the project Atlantis, developed by Codic in a

decentralized zone, went ahead despite the credit

crunch, and was purchased by UBS for 92 MEUR; Crown

Avenue (31,550 m2) was purchased by Bank of Ireland

Private Banking for 115 MEUR from Immobel & BPI.

The sale of Ellipse Building (47,940 m2) to Fortis Group

as well as the sale of the Lex building (58,800 m2) to the

Council of Europe have been realised in 2007.

Asset diversifiCAtion

Diversification in other sectors has been one major

trend to take place over 2007. Including the second half

of last year, the office market now accounts for 48 % of

the total investment market in 2007. In 2006, the total

office market accounted for 60 %, a 12% decrease on

2007. The retail market increased last year, account-

ing for 17 % of the total investment market, up 30 % on

2006. Much of that was attributed to the InBev port-

folio purchase by Cofinimmo worth 264 MEUR. The

warehousing market now accounts for 9 % of the total

investment market, a 2 % increase on 2006. Most of

these investments lie within the logistics sector.

Foreign investors accounted for 34 % of the total shop-

ping centre investment market, down from 53 % in

2006. The hotel market was the fourth most impor-

tant asset sector in 2007 following a fairly placid 2006

where only mixed-schemes including hotels were

recorded. 357 MEUR was invested in the hotel market

in 2007. Further evidence of diversification included

acquisitions of retirement homes, as witnessed by

Cofinimmo.

CApitAl sourCes 2007Domestic investors now account for 36 % of total investments compared to 41 % in 2006. Coinciding with a downturn for commercial real estate in the UK, British investors now account for 16 % of the total mar-ket compared to a mere 4.5 % last year. The Germans account for 11 % of the market, similar to last year’s 10 % level. The Dutchmen have been responsible for just over 200 MEUR worth of acquisitions compared to only 14.5 MEUR in 2006. Disappearing in 2007 were the Australians. They entered the market for the first time with strength in 2006 after purchasing three assets worth 230 MEUR, most notably Rubicon’s purchase of Hermes Plaza in Brussels for its open-ended fund. Last year, the Australians were not present. Entering the market for the first time however were the Chinese. Hainan Airlines purchased a hotel portfolio from the Halfon Group for over the fourth quarter of 2007.

yields

Following record investment levels in Belgium, prime yields on average have compressed around 50 bp over the last year on 6 year leases. In the Brussels CBD, the prime yields for office buildings with 3 / 6 / 9 year lea-ses vary from 5.6 % in the Leopold District, 5.8 % in the North District, 5.9 % in City Centre to 6.1 % in the Louise District.

OUTLOOK fOR 2008

The pipeline over 2008 will increase to 410,000 m2, slightly above the five-year average. However, half of this is already pre-let, mostly as result of the sale & leaseback of the 130,000 m2 Finance Tower in the City Centre District, which is due for completion the second quarter of 2008. Many buildings will become vacant next year following their tenants move into the Finance Tower. This will not affect immediate vacancy rates as those buildings will undergo refurbishment and repositioning. The overall speculative supply in 2008 will remain modest and it is expected that the overall vacancy rate will hover around the 10 % level.


31

In terms of prime rents, they are anticipated to remain at the current levels going into 2008. For the letting market, take-up will be affected by the macro-econo-mic situation in Europe, citing in particular the ban-king and finance sectors. The position of the Belgian government could also affect take-up in the medium term. However, the European Union should return into 2008 and it is anticipated that they will begin to lease substantial office space following the delays over 2007, nonetheless dependent on the current constitutional negotiations. The Belgian Administrations are expec-ted to be less active following the closing stages of their re-organization.

On the investment side, players for 2008 will change following the credit crunch. It can be foreseen that the institutional and equity-based players will dominate

following the funding difficulties faced today by the debt-driven investors in Europe. In Belgium, domestic players may return to the market, as might German open-ended funds and asset managers. There is also little concrete evidence of a major outward shift in yields. In our view, the trend has not yet fully esta-blished, although given the marked changes in the European markets, over-aggressive anticipated yields were not achieved in Belgium.

The demand for good, prime assets is present today, yet the availability of such product remains scarce. Belgium has experienced far less rapid yield compres-sion compared to other major markets, and therefore its wealth-preservation aspect and counter-cyclical nature will benefit it, unlike the more heated markets in Europe.


omeGa court offices (brussels / auderghem) - assar

state admiNistrative ceNtre (brussels) - Jaspers, eyers & partners

32

wALLOON REGION

The Walloon real estate market is centred on three major cities : Liege, Charleroi and Namur.

Liège has the largest office stock (395,000 m2), followed by Charleroi (273,000 m2) and Namur (242,000 m2). In 2006, there were two new constructions in Namur, the Namur Office Park (3,500 m2) and a refurbishment at the Place Joséphine-Charlotte (8,600 m2). The two most notable completions are situated in Jambes (4,800 m2) Phase 1 of Parc de la Montagne; and a building on the Avenue Prince de Liège (7.500 m2). The vacancy rate remains limited in Liège (3.8 %) and Charleroi (4.1 %), but has increased in Namur (10.0 %) due to the new office completions. Nonetheless, it is expected that vacancy will decrease in 2008 as only one building of 3,500 m² (Namur Office Park Phase IIa) will be delivered. In addi-tion, two-thirds of the “ Prince de Liège ” building have already been taken-up by Forem, a Walloon agency for work arbitration and employment (the counterpart of the Flemish VDAB).

Office demand in Wallonia is mainly driven by the public administrations, estimated to account for almost 75 % of all take-up. A large proportion of the take-up is concentrated in new, more efficient office space with average size transactions for floor spaces above 2,000 m2. Almost 70 % of all the area is acquired for owner-occupation. In 2008, an increase of demand is expected for both the government and the corporate

sector. The government, including the Walloon Region, has plans to regroup and consolidate its administra-tion. In addition, the current 120 intercommunales will be reduced to 63 by the end of 2007. This might include mergers, which eventually could generate an increased take-up directed towards new, flexible and efficient office buildings.

In the wake of the government reorganisation, corpo-rate take-up may also increase as lawyers, consultancy companies, IT-companies and lobbyists regroup close to the administrations of the Walloon capital. Private com-panies might also potentially look to settle in the region as part of the efforts to promote the economic develop-ment of the Region (the Marshall Plan for Wallonia).

Prime rents have remained stable over the years. The highest prime rent achieved is in Namur (137-161 EUR/ m2/year – new buildings), followed by Liège (108-118 EUR/m2/year) and Charleroi (100-115 EUR/m2/year).

In terms of capital markets investment, Wallonia repre-sented 7 % of the total real estate investment volume in Belgium over 2007 with total volume reaching 230 MEUR, double that of 2006. Investors tend to be domestic, institutional players (71 %); however, UK investors (16 %) and Irish investors (8 %) were also pre-sent. In terms of sectors, both retail and offices accoun-ted for 30 % in total. The shopping centres market accounted for another 16 % with the remaining 24 % mixed (residential, leisure and hotels).


ferme des 4 sapiNs (wavre) - dessin et construction

forum (brussels) - archi 2000

33

fLEMISH REGION

The largest real estate markets in Flanders are Antwerp (1.8 million m2), Ghent (1.3 million m2), Leuven (500,000 m2) and Mechelen (300,000 m2). The Flemish region in the North of the Brussels Periphery remains attractive for headquarter offices due to the lower tax compared to the 19 communes of Brussels.

The public authorities of Antwerp and Ghent have an active office market policy in a bid to attract corporates to their city. Both authorities want these regions to become a real alternative headquarter office pole to Brussels. They aim for companies with activities in the Benelux, such as the former headquarter of ABN AMRO at Berchem. Many projects are in progress in those two cities in order to reach this target. For example, in Antwerp, a master plan for improving mobility con-sists of major infrastructure works to provide a durable solution to the traffic congestion and accessibility pro-blems today. Ghent has only begun the construction of a huge office complex next to the Sint-Pieters train station.

Mechelen and Leuven also have high aspirations, but with a focus more geared towards companies oriented within the domestic market. As Mechelen focuses on its central location between Antwerp and Brussels, Leuven can use its proximity of Brussels, the airport and the presence of the university as its main selling point.

Compared to a total take-up of 185,000 m2 in 2006, total take-up in Flanders reached some 195,000 m2 in 2007. 107,000 m2 was located in Antwerp, 66,000 m2 in Ghent, 11,000 m2 in Mechelen and 7,000 m2 in Leuven. For Ghent, however, some 36,000 m2 was attributed to the pre-letting of the Justice Palace.

Prime rents in the various cities have remained fairly stable but indeed are under upward pressure due to a lack of product. New products are anticipated over the coming years. Therefore, prime rents now stand between 100-144 EUR/m2/year in Antwerp, 125-140 EUR/m2/year in Ghent, 120-140 EUR/m2/year in Leuven, and 120-140 EUR/m2/year in Mechelen.

Although there is a healthy pipeline in Flanders, many new completions are pre-let due to a lack of grade A buildings. In addition, not all developers are willing to build at risk in secondary locations. Of the total 40,000 m2 delivered over 2007 in Antwerp, almost every-thing is already let. The B building of the Kievitplein (18,000 m2) was already pre-let to the Flemish govern-ment; the Ultimate Phase II of 9,200 m² was let to Fortis

Insurance; and the Antwerp Ring Center B (5,500 m2) was also let before completion. The total area that is estimated to be delivered speculatively on the Antwerp market in 2008 is around 22,000 m2. The main pro-jects are the Franklin Building (Posthoflei), The Plantin & Moretus Business Center (Plantin en Moretuslei), Helsmoortel III (Generaal Lemanstraat) and the Munter (Terninckstraat).

In Ghent, no speculative projects were completed in 2007 but during 2009-2010, a large number of huge mixed projects should be delivered. The office project located next to the Sint-Pieters train station has a buil-ding potential of 90,000 m2; the ’Loop’ project, a mixed development with retail warehouses as well as an Ikea store (30,000 m2) leisure and offices; a new soccer stadium for AA Gent is planned on the Artevelde site which has 10,000 m2 of office potential. And finally, the ex-Belgacom tower (in the Keizer Karellaan which Belgacom will vacate by the end of 2008) will be rede-veloped by Gedevco into mixed offices, retail and resi-dential with has a total potential of 160,000 m2.

The major project located in Leuven is the KBC project next to the railway station which totals 42,000 m2. Four of the five buildings are already pre-let to KBC and to the City of Leuven, due for completion February 2008. Mechelen had some major projects launched in 2007 due for completion in 2009. The most active developer is U Place. It has three new projects in the pipeline, namely the York tower, the Zuidpoort Phase 2 and the Rempbold Park, adding up to a total surface of 80,000 m2. Pre-letting negotiations are already under way for the York Tower.

In 2006, secondary cities like Antwerp and Ghent wit-nessed large size volume transactions including the project Kievit acquisition by KanAm (over 200 MEUR) located near the Antwerp Central Station. The main transactions in Ghent included the acquisition of the Zuiderpoort Office Park by a new investor on the Belgian market, the Icelandic investor Sjova-Almennar Tryggingar hf (163 MEUR) and the acquisition of the Court of Justice of Ghent by KBC Real Estate.

Secondary locations remained important in 2007 with some large office investments in Antwerp by major international investors. These locations will remain important going into 2008 as investors diversify into new locations and new sectors in a bid to spread their portfolios from the traditional prime location of Brussels where products and strategies become harder to identify.


34

BELGIAN RESIDENTIAL REAL ESTATE MARKET 20071

In general terms, 2007 was a year of stable sales, with prices rising slightly. The impact of the increase in inte-rest rates has not yet been felt, mainly because rates remain intrinsically low.

The trend towards younger buyers was confirmed, along with an increase in average mortgage durations. This represents a significant change in the mentality of the market.

An analysis of sales shows that demand is holding up for “essential” properties (housing type : mid-range), mainly acquired by first time buyers under the age of 35 / 40 years.

These purchasers think in terms of their overall bud-get rather than price per square metre. This segment of the market represents sales prices of 125,000 EUR to 230,000 EUR, for a 1 or 2 bedroom apartment.

On the other hand, demand for “comfort” housing (“mid to high range” from 250,000 EUR to 400,000 EUR for 2 to 3 bedrooms) was down. The supply of new-build “com-fort” property on the market was significant in 2007, following the high demand bordering on euphoria in 2005 and 2006, which made developers very optimis-

tic about this segment of the market. During 2007, demand for these “comfort” properties slowed signi-ficantly due to three factors : economic uncertainty, the instability of the Belgian government and the extensive media exposure given to the American “sub-prime” problem. Buyers of these “comfort” properties are traditionally aged over 40 years and have neither the opportunity (because of their age) nor the desire (because of the uncertainty) to extend the duration of their mortgages.

The “luxury” end of the market remains in good health and price levels are high. The 4,000 EUR/m² level has even been exceeded in some exceptional cases. This market segment is less sensitive to the economic situa-tion but represents only a small part of the overall resi-dential property market in Brussels.

Elsewhere, the demand for single-family houses remained stable in 2007.

The key feature of 2007 is that most activity was con-centrated on first time buyers.

1. Source : Consortium Immobilier Général.

belGiaN resideNtial real estate market 2007

35

JardiNs de Jette (brussels / Jette) - assar


36

real estate deVelopmentoFFiCes

land deVelopment

real estate developmeNt

ellipse buildiNG (brussels / schaerbeek)

- art & build, montois partners

eNGhieN

37

real estate deVelopment

residential deVelopmentomeGa court housiNG

(brussels / auderghem) - assar


38 real estate developmeNt - offices


39

oFFiCes

In 2007, Compagnie Immobilière de Belgique sold the companies owning the projects Ellipse Building (48,000 m²) in Brussels, to the Fortis Group (50 % holding), Jardins de la Couronne – Offices section (31,549 m²) in Brussels (50 % holding), and WestSide Village (Phase I, 10,596 m²) at Mamer, in Luxembourg, to the Belgravia Group, as well as signing the official deed of sale for the buildings Lex in Brussels to the Council of Europe (58,800 m²), Les Mélans in Bouge to the company Editions de l’Avenir (4,439 m²) and Ferme des 4 Sapins – Offices section (1,330 m²) in Wavre.

It also concluded major rental agreements, primarily in the Jardins de la Couronne building (12,000 m² of additional offices) in Brussels (Ixelles) to Régie des Bâtiments (50 % holding) on a 15-year lease, 12,000 m² of offices in the Block A complex of Espace Midi in Brussels on a 27-year lease to ASBL SmalS – MvM (10 % holding), various 3, 6 and 9 year leases in the WestSide Village complex at Mamer – Luxembourg (50 % holding), 5,994 m² in the Ellipse Building located in Brussels (Schaerbeek) to IBPT, as well as a lease of 21,128 m² of Block 9 in Place des Martyrs.

The provisional reception of Ellipse Building and the D4 building owned by Société Espace Léopold (50 % holding) took place.

Elsewhere, Compagnie Immobilière de Belgique started, continued and / or completed build-ing projects either on its own : Mercelis, Ferme des 4 Sapins or in partnership : South Express, WestSide Village (Eglantier), Lex, Omega Court and D4-D5.

KEy EvENTS

This activity is carried out by Compagnie immobilière de belgique and the following companies in which it holds stakes :

belgium

100 %

Compagnie immobilière de Wallonie (shortened CiW)

50 %

leX 2000

50 %

soCiété espaCe léopold (hereafter sel)

37.47 %

infrastruCtures & developpements immobiliers (shortened IDIM)

99.9 %

immobiliën vennootsChap van vlaanderen

33 %

promotion léopold

grand duCHY oF luXembourg

50 %

Westside


40

d4-d5 (brussels / ixelles) - Joint venture «ael - Groupe t - tractebel»


omeGa court (brussels / auderghem) - assar

table i – maiN office proJects uNder coNstructioN at 31st december 2006 (5 sites)

hoLDING %

coMPANycoNcERNED

SuRFAcE (M2 ABovE GRouND)

coMPAGNIE IMMoBILIèRE DE BELGIquE ShARE

DAtE MADEAvAILABLE

coMMERcIALISAtIoN StAtutS

(M² ABovE GRouND)

d4-d5 - brussels (ixelles) 50 % SEL 41,500 20,750 06/2008 Disposed of

Ferme des 4 sapins - Wavre 100 % LES COurSES 2,700 2,700 03/2007 being commercialised

lex - brussels 50 % LEX 2000 58,800 29,400 01/2007 Disposed of

omega Courtbrussels (auderghem)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 17,287 8,644 02/2008 Not commercialised

south express brussels (saint-gilles)

10 % COMPAGNIE IMMObILIèrE DE bELGIquE 29,417 2,041 03/2008 50 % disposed of

total 140,704 63,535

real estate developmeNt - offices

41

table ii – maiN office proJects uNder coNstructioN at 31st december 2007 (7 sites)

hoLDING %

coMPANycoNcERNED



DAtE MADEAvAILABLE

coMMERcIALISAtIoN StAtutS

(M² ABovE GRouND)

d4-d5 - brussels (ixelles) 50 % SEL 41,500 20,750 06/2008 Disposed of

Ferme des 4 sapins Wavre

100 % LES COurSES 2,700 2,700 03/2007 52 % disposed of & balance being commercialised


mercelis brussels (ixelles)

100 % IMMObILIëN vENNOOTSChAP vAN vLAANDErEN

1,935 1,935 12/2008 Disposed of

omega Court brussels (auderghem)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 17,026 8,513 02/2008 being commercialised

south express - ilot a brussels (saint-gilles)

10 % COMPAGNIE IMMObILIèrE DE bELGIquE 21,128 2,113 03/2008 50 % disposed of & 50 % rented

Westside Village, eglantier grand duchy of luxembourg

50 % SOPrIMA 3,946 1,973 12/2007 100 % disposed of & 60 % let

total 147,035 67,384

d4-d5 • brussels (ixelles)Compagnie Immobilière de Belgique is a shareholder in Société Espace Léopold, shortened “SEL”, with a 50 % stake. Promotion Léopold, of which 31 % is owned by Compagnie Immobilière de Belgique and 5 % by SEL, is carrying out the development work on a 78,000 m² building, which includes 41,500 m² of offices and meeting rooms, a public car park and an audio-visual studio. Negotiations with the European Parliament led to the signature of an official deed on 10th November 2004. D4 had already been handed over in March 2006 and construction work on D5 is continuing.

ferme des 4 sApins • wAvre

Conversion / renovation work on Ferme des 4 Sapins has been completed. All the units in the farm building, except for 1, were sold and handed over in 2007. Structural work on the barn has been finished. This consists of 3 levels of offices with a total surface area of around 1,000 m². Fitting out work on one level, as well as the communal areas, will be carried out at the start of 2008.

lex • brussels

The building, with 45,000 m² of offices and 13,800 m² of meeting and catering space, was delivered in January 2007. The Council of the European Union acquired the building (the terms of a long lease signed in October 2003 provided for this option); the deed of sale was signed on 1st February 2007.

merCelis • brussels (ixelles)Planning and environmental permission has been granted for a project consisting of the redevelopment of the site. The project will be made up of offices and a library, as well as 13 apartments; construction work got underway in mid-2007.

The Commune signed the deed of purchase for the offi-ces and library on the 4th October 2006.

omegA Court • brussels (Auderghem)This project of 17,026 m² of offices and non-material production activities is being developed. Construction work will be completed during the 1st quarter of 2008.

south express - bloCk A • brussels (sAint-gilles)The company Espace Midi is creating 21,128 m² of offices and 1,169 m² of residential space. Construction work continued during 2007. This project will be finished at the start of 2008, including specific fitting out for the occupants. Group S acquired almost 50 % of the building for its own use. The rest of the building has been let.

westside villAge, eglAntier grAnd duChy of luxembourg

Soprima constructed the Eglantier building during 2007. Sixty percent has already been let and this building as well as the 2 already existing buildings, Daphné and Frêne, were sold to the Belgravia invest-ment group on the 28th September 2007.

PROJECTS IN PROGRESS AT 31ST DECEMBER 2007 (TABLE II)


42

table iii – maiN office proJects completed duriNG 2007 (2 sites)

hoLDING %

coMPANycoNcERNED



DAtE MADEAvAILABLE

coMMERcIALISAtIoNStAtuS (M² ABovE

GRouND)




total 62,746 31,373

table iv – proJects commeNced iN 2007(2 sites)

hoLDING %

coMPANycoNcERNED



DAtE MADEAvAILABLE


GRouND)

mercelis - brussels (ixelles) 100 % IMMObILIëN vENNOOTSChAP vAN vLAANDErEN

1,935 1,935 12/2008 Disposed of



total 5,881 3,908

table v – buildiNGs commercialised iN 2007 (7 sites)

hoLDING %

coMPANycoNcERNED



DAtE MADEAvAILABLE


GRouND)

Crown avenue - brussels (ixelles) 50 % COMPAGNIE IMMObILIèrE DE bELGIquE 31,549 15,775 06/2005 Disposed of

ellipse building brussels (schaerbeek)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 47,941 23,971 09/2006 Disposed of

Ferme des 4 sapins - Wavre 100 % LES COurSES 2,700 2,700 03/2007 52 % sold


place des martyrs - block 9 brussels

100 % IMMObILIèrE DEkA 1,512 1,512 100 % let

south express - block a brussels (saint-gilles)

10 % COMPAGNIE IMMObILIèrE DE bELGIquE 21,128 2,113 03/2008 50 % let

Westside Village, daphné, eglantier & Frêne grand duchy of luxembourg

50 % SOPrIMA 10,996 5,498 12/2007 Fully sold & 85 % let

total 174,626 80,969


aveNir (tournai) - yellowstone


43

Crown Avenue • brussels (ixelles)This project was disposed of in its entirety, 31,549 m² of offices, to two foreign companies acting through Bank of Ireland.

ellipse building • brussels (sChAerbeek)The Vlaamse Gemeenschap has occupied 26,774 m² of offices and a new lease has been signed with IBPT for 5,994 m². The entire project, consisting of 47,941 m², was sold to the Fortis Group on 27th April 2007.

plACe des mArtyrs - bloCk 9 • brussels

This 1,512 m² office project was let to the Vlaamse Gemeenschap.

westside villAge, dAphnÉ, eglAntier AND frÊne • grAnd duChy of luxembourg

Soprima has rented the whole of the two office buil-dings already constructed. These buildings are part of a complex of offices of approximately 23,000 m², composed of six buildings and an underground car park for around 1,000 cars. The Daphné, Eglantier and Frêne buildings were sold on 28th September 2007 to Belgravia.

BUILDINGS COMPLETED (TABLE v)

PROJECTS UNDER CONSIDERATION

Avenir • rues du ChâteAu And du rempArt - tournAi

The Compagnie Immobilière de Belgique Group is con-sidering a possible 16,000 m² office project.

boulevArd melot • nAmur

CIW acquired the site at Boulevard Melot 12 (opposite Namur train station) with a view to building around 10,000 m² of offices. The site previously belonged to the Vers l’Avenir Group (Médiabel). A project is under con-sideration.

brusselstower • brussels

A new planning application was made at the end of 2006 for 70,000 m² of offices. Compagnie Immobilière de Belgique proposed a modification to the outline of the building : the 39-storey tower (for which planning permis-sion was applied in 2005) has been replaced by a 24-storey building. Work is underway to remove asbestos.

forum • brussels

Compagnie Immobilière de Belgique acquired all the buildings located on the block demarcated by rue du Parlement, rue de la Presse, rue de Louvain and rue de la Croix de Fer.

Planning and environmental permission for Phase 1 of this project was applied for in mid-July 2006. This con-cerns the area formerly occupied by the Federal Police (more or less 1/3 of the block) and involves 15,915 m² of offices. The remaining 2/3rds will continue to be occu-pied by Moniteur belge and INS (Institut National des Statistiques – national statistics institute) until the end of 2008.

This project should enable around 40,000 m² of offices and 3,000 m² of housing to be developed.

place des martyrs (brussels)

state admiNistrative ceNtre (brussels) Jaspers, eyers & partners


44

Juste lipse • brussels A new study is underway to consider the construction of offices and residential units, as well as a car park and shops. The creation of an esplanade will be a key feature of the project. A new layout has been studied in order to facilitate the widening of chaussée d’Etterbeek.

luChthAvenlAAn • vilvoorde

A project is being considered to develop several build-ings to be built on the existing site.

reyers C • brussels (sChAerbeek)Compagnie Immobilière de Belgique, in a joint venture with CFE, presented a town planning project on the Reyers / Colonel Bourg site.

The overall study deals with traffic flows (car, bus, bicycle), building a dissuading car park, the creation of green space and the development of Block C, the final office building to be built along boulevard Reyers.

Planning and environmental applications were sub-mitted in 2006 in respect of the Reyers site; they include modifications to the motorway exit.

south City offiCe & hotel - bloCk C brussels (sAint-gilles)The companies Espace Midi and Atenor are consider-ing a mixed project to create 30,776 m² of offices and a 142 room hotel with a surface area of around 7,320 m². Construction work will begin in 2008.

south City - bloCk d • brussels (sAint-gilles)The company Espace Midi is considering a project for 8,050 m² of offices and 3,025 m² of residential accom-modation.

stAte AdministrAtive Centre • brussels Plans were completed for two projects to fully renovate around 86,200 m² of buildings D&F and C, and plan-ning and environmental applications were submitted in April and August 2006.

MIxED PROJECT UNDER CONSIDERATION

snowdome • tubize

In a joint venture with ING Real Estate (50 %), CIW (50 %) is considering a mixed shopping-leisure project (Outlet – Market – Retail Park and Leisure Centre) nota-bly including a snowdome.

The master plan was presented to the public on 12th December 2006. It was approved by the govern-ment on 30th November 2007. A PPAS (Plan Particulier d’Aménagement du Sol – particular land use plan) will be carried out by the City of Brussels.

trAnspolis • zAventem

In a joint venture with BIAC and Wilma Project Development, the subsidiary Immobiliën Vennootschap van Vlaanderen is considering the possibility of constructing an office complex under the name of Transpolis in the immediate proximity of Brussels National Airport at Zaventem.

universAlis pArk • brussels (ixelles)Compagnie Immobilière de Belgique (50 %) and Les Entreprises Louis De Waele Group (50 %) have acquired 2 parcels of land (85,000 m²) belonging to ULB and located on Campus de la Plaine in Brussels (Ixelles). The deed of sale was signed on 5th September 2007. A mixed project is under consideration, with office and residential elements.

westside villAge - buildings A, b AND C grAnd duChy of luxembourg

This is a project of 24,140 m² spread over 6 buildings. 10,596 m² of Phase I has been sold in 2007 to the group Belgravia. The continuation of the construction work is planned for 2008.


45



46 real estate developmeNt - resideNtial developmeNt

omeGa court housiNG (brussels / auderghem) - assar

47

residential deVelopment

As it had done in previous years, the Group commenced, continued and / or completed work on various residential sites during 2007, in particular Erpent, Hôpital Français, Jardin des Sittelles, Jardins de Jette, Jardins de Stockel, Omega Court and Place des Martyrs (Block 7).

During 2007, 153 apartments and 23 houses have been sold.

KEy EvENTS

This activity is carried out by Compagnie immobilière de belgique and the following companies in which it holds stakes :

belgium

100 %

Compagnie immobilière de lotissements (shortened lotinvest)

100 %

immobiliën vennootsChap van vlaanderen

76 %

les Jardins du nord

100 %

immobilière deka, (hereafter immo deka)

100 %

les Courses


48

table i – maiN resideNtial buildiNGs uNder coNstructioN or completed at 31st december 2006 (13 sites)

% hoLDING coMPANy coNcERNED uNItS

bon dieu du Chêne Walhain-saint-paul

50 % LES COurSES 4 houses of which 3 sold in 2006

Chaussée bara - Waterloo 50 % LES COurSES 7 houses under construction of which 4 sold in 2006

egmont House - brussels 100 % COMPAGNIE IMMObILIèrE DE bELGIquE 6 apartments sold in 2006

erpentval - erpent 100 % LOTINvEST Commencement of construction on a building with 15 apartments

Hôpital Français - brussels (berchem-sainte-agathe)

76 % LES JArDINS Du NOrD 12 houses of which 7 sold in 2006

Jardin des sittelles - brussels (Woluwe-saint-lambert)

100 % LES COurSES 15 houses under construction of which 8 sold in 2006 and 28 apartments under construction of which 7 sold in 2006

Jardins de Jette - brussels (Jette) 50 % COMPAGNIE IMMObILIèrE DE bELGIquE 196 apartments of which 76 sold in 2006

Jardins de la Couronne - brussels (ixelles)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 2 apartments sold in 2006

louise michel - brussels (molenbeek-saint-Jean)

99.6 % hArMONIA 43 apartments sold of which 22 in 2006

omega Court - brussels (auderghem)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 83 apartments of which 40 sold in 2006

place des martyrs - block 8a brussels

100 % IMMObILIèrE DEkA 1 retail unit and 2 apartments out of 5 sold in 2007

quatre sapins - Wavre 50 % LES COurSES 9 houses sold in 2006

rue Joly - brussels (schaerbeek) 50 % COMPAGNIE IMMObILIèrE DE bELGIquE Commencement of construction of 8 apartments

real estate developmeNt - resideNtial developmeNt

JardiN des sittelles (brussels / woluwe-saint-lambert) - trio

hÔpital fraNçais (brussels / berchem-sainte-agathe) - urban

49

place des martyrs (brussels) - fisco 88

PROJECTS UNDER CONSTRUCTION AT 31ST DECEMBER 2007

Avenue Albert ier • genvAl

The construction of 17 houses, 8 of which were sold in 2007, has been commenced with a partner.

ChAussÉe bArA • wAterloo

The last 3 houses, constructed in association with a partner, were sold in 2007.

fonCiÈre du pArC • brussels In 2005, Compagnie Immobilière de Belgique and Soficom acquired shares in the company Foncière du Parc, held with other partners. Compagnie Immobilière de Belgique now has a 50 % stake in this company.

Planning permission for the construction of 66 apartments and 7 retail units was handed over on 16th November 2006. Construction work commen-ced in mid-2007 and the entire project was sold on 13th November 2007 to Parc Belliard.

hÔpitAl frAnÇAis brussels (berChem-sAinte-AgAthe)The 7 houses sold in 2006 were handed over during 2007.

JArdin des sittelles brussels (woluwe-sAint-lAmbert)The last 5 houses in this development, which were sold in 2006, were handed over in 2007. The company Les Courses developed a total of 41 single-family hou-ses and a building with 28 apartments on this site.

JArdins de Jette • brussels (Jette)This is a vast mixed development. 74 apartments and 22 houses were sold during 2007. At 31st December 2007 were :

constructed : 129 houses and 677 apartments,

under construction : 26 houses and 134 apartments,

sold : 151 houses and 675 apartments,

ready to start : 34 apartments at the start of 2008,

under consideration : 22,000 m² which will be either offices or residential units.

JArdins de stoCkel brussels (woluwe-sAint-lAmbert) Construction was started on a first phase of 9 single-family houses during the year.

The 9 were all sold in 2007 and handed over in 2008.

Planning permission for the construction of a building containing 38 apartments is under consideration.

merCelis • brussels (ixelles)This project is for the construction of 13 apartments, totalling 1,673 m², as well as offices and a library. Planning and environmental permission was obtained in 2007 and construction has now begun.

omegA Court • brussels (Auderghem)Compagnie Immobilière de Belgique, in partnership, completed the construction of 83 apartments, 9 of which were sold in 2007. Only one remains unsold.

PLACE DES MARTyRS - BLOCK 2/3 • brussels The final retail unit, that was let, has been sold.

PLACE DES MARTyRS - BLOCK 4 • brussels

Two retail units, that were let, were sold during 2007.

plACe des mArtyrs - bloCk 7 • brussels

Planning permission was received on 10th April 2006 and permission from the conservation authorities was obtained on 12th April 2007. Construction work on the structure commenced in 2007.

plACe des mArtyrs - bloCk 8A • brussels

The last 2 apartments, as well as a retail unit, were sold in 2007.

rÉsidenCe erpentvAl • erpent

The construction of a building comprising 15 apart-ments will be completed at the start of 2008. The deed of sale for an apartment was signed at the end of 2007.

rue Joly • brussels (sChAerbeek)Work on the construction of 2 apartment buildings, each comprising 4 units, started at the end of 2006. This development, in partnership, is an urban planning requirement of the office project Ellipse Building. The apartments will be marketed in 2008.


50

table ii – maiN resideNtial or retail buildiNGs uNder coNstructioN or completed at 31st december 2007 (16 sites)

% hoLDING coMPANy coNcERNED uNItS

avenue albert 1er - genval 50 % LES COurSES 17 houses under construction of which 8 sold in 2007

Chaussée bara - Waterloo 50 % LES COurSES The last 3 houses were sold in 2007

egmont House - brussels 100 % COMPAGNIE IMMObILIèrE DE bELGIquE 7 apartments of which 1 sold in 2007

Foncière du parc - brussels 50 % COMPAGNIE IMMObILIèrE DE bELGIquE 66 apartments of which 66 sold in 2007

Hôpital Français - brussels (berchem-sainte-agathe)

76 % LES JArDINS Du NOrD 7 houses sold in 2006, handed over in 2007

Jardin des sittelles - brussels (Woluwe-saint-lambert)

100 % LES COurSES 5 houses completed in 2007, already sold in 2006

Jardins de Jette - brussels (Jette) 50 % COMPAGNIE IMMObILIèrE DE bELGIquE 74 apartments and 22 houses sold in 2007

Jardins de stockel - brussels (Woluwe-saint-lambert)

80 % LES COurSES 9 houses under construction, sold in 2007

mercelis - brussels (ixelles) 100 % IMMObILIëN vENNOOTSChAP vAN vLAANDErEN

13 apartments under construction

omega Court - brussels (auderghem)

50 % COMPAGNIE IMMObILIèrE DE bELGIquE 83 apartments of which 9 sold in 2007

place des martyrs - block 2/3 brussels

100 % IMMObILIèrE DEkA Final retail unit (let) sold


100 % IMMObILIèrE DEkA 2 retails units (let) sold


100 % IMMObILIèrE DEkA 44 room hotel under construction

place des martyrs - block 8a brussels

100 % IMMObILIèrE DEkA 1 retail unit and the last 2 apartments sold in 2007

résidence erpentval - erpent 100 % LOTINvEST 15 apartments under construction of which 1 sold in 2007

rue Joly - brussels (schaerbeek) 50 % COMPAGNIE IMMObILIèrE DE bELGIquE 8 apartments (2 times 4) under construction

real estate developmeNt - resideNtial developmeNt

albatross villaGe (haren / brussels) - conix architects

51

PROJECTS UNDER CONSIDERATION

AlbAtross villAge • hAren (brussels)A new project is under consideration. It places the emphasis on residential accommodation, housing for the elderly (sheltered housing and nursing and care homes). This project could support 30,000 m² of resi-dential accommodation, 17,200 m² of care homes and services, as well as 12,500 m² of offices.

bellA vitA • wAterloo

Compagnie Immobilière de Belgique acquired a pro-perty in November 2005 located at Drève des Dix Mètres in Waterloo, occupied on a long lease by the Province du Brabant Wallon, from CPAS of Brussels.

This 14.9 ha site, a significant part of which is classified as a listed building, will be renovated as a mixed multi-generational centre focused on the elderly that could among other things include medical or paramedical facilities, a nursing home, a care home, serviced accom-modation, a rest centre, a development of residential accommodation… Studies are continuing and an over-all project was presented in 2007. Work has started on

the impact study. The total area to be constructed is

around 60,000 m².

CondorCet rue tumelAire And rue du pArC in ChArleroi

CIW, as part of a joint venture (CIW share 80 %), owns

a site situated between rue Tumelaire and rue du Parc.

A planning application that conforms with the Plan

Communal d’Aménagement (communal land use plan)

has been submitted. It involves the development of

54 apartments and some professional offices.

Crespel • brussels (ixelles)This project, in a joint venture with CFE (50/50), has

obtained a town planning permit for 4,200 m² of resi-

dential space.

Juste lipse ii • brussels

A new project is under consideration to construct an

urban centre involving the building of offices (9,600 m²),

residential units (4,800 m²), 122 car parking spaces and

shops, as well as the creation of an esplanade.

mercelis (brussels / ixelles) - conix architects

bella vita (waterloo) - Joint venture «fcm architects - benoît courtens et associés»


52 real estate developmeNt - laNd developmeNt

erpeNtval (erpent) - bureau Girs

53

100 %

land deVelopment

Land Development, the activity at the origin of Compagnie Immobilière de Belgique, consists of urbanising plots of land with a view to putting serviced plots on the market, primarily for residential use.

This activity was transferred to a subsidiary in 1993 and is currently vested in Compagnie Immobilière de Lotissements, shortened “Lotinvest”. Residential promotion operations com-plete the Land Development activity. These are generally vested in Les Courses.

The company owns or permanently controls around 300 ha of land located in areas that can be built on. Each year, new purchases ensure the activity can be maintained for the future. Land purchased in 2007 amounted to around 19 ha.

Furthermore, various acquisitions under conditions precedent, joint venture agreements or options, relating to approximately 21 ha were completed in 2007.

The process of adding value to the assets necessitates multiple administrative procedures leading to land development permits or planning permission.

Compagnie Immobilière de Lotissements is assisted in these tasks by planners, surveyors, architects and specialists with competence in areas such as the environment, soil analysis, energy performance, impact studies, etc.

In 2007, new land development permits and / or planning permission were received at Chastre, Soumagne, Tongeren, Fléron, Ganshoren and Evere. Once permits have been received, Compagnie Immobilière de Lotissements develops and finances the installation of services for public roads, sewers, electricity, public lighting, cable television, gas, water and telephone.

In 2007, work on facilities for new land developments was started or continued at Enghien, Fléron, Soumagne, Grâce-Hollogne, Waterloo, Evere, Ganshoren and Stavelot.

Sales of land during 2007 accounted for 141 transactions representing a net area of more than 13 ha (Group share) including 3 ha of agricultural land.

Finally, in 2007, Lotinvest completed an estate agency operation located at Nieuwpoort and covering an area of 107 ha.

KEy EvENTS

Land Development activity is mainly carried out by the company :

belgium

Compagnie immobilière de lotissements(shortened lotinvest)


54

brAine-l’Alleud • Avenue mArÉChAl ney

Work on public roads was handed over in June 2007. Planning permission for an apartment building was submitted by a developer.

bredene • pArkbos

Sales of this major project comprising 226 plots for single-family houses and 6 plots for villas-apartments are continuing as expected. 15 sales were made in 2007.

enghien • ChAussÉe d’Ath

Work on the public roads for this major land develop-ment comprising 91 plots was handed over in June 2007. 30 plots were sold during the second quarter.

erpent • rue d’erpentvAl

12 sales were made during the year. The sale of the last plots as well as the apartment building constructed on one of the plots is planned for 2008.

genvAl • Avenue Albert

15 plots were sold during the year. The sale of the rest of this land development, a further 11 plots, can reaso-nably be expected in 2008.

grâCe-hollogne • rue du ruy

Work on the public roads was handed over in 2007. The first sales – 9 – in this land development that consists of a total of 26 plots were made during the year.

polleur • plein sud 10 sales were made in 2007 in this 33-plot land development. 7 plots remain to be sold.

soumAgne • rue JeAn JAures

Work on the public roads for this land development was handed over in December 2007. This land develop-ment consists of 39 plots. The first sales will be made in 2008.

vedrin • rue mArtin leJeune

The final plots in this land development were sold in 2007.

wAterloo • ChAussÉe bArA

The final 3 plots in this land development were sold in 2007.

MAIN PROJECTS IN PROGRESS AT 31ST DECEMBER 2007

PROJECTS IN PROGRESS OR TO BE COMMENCED IN 2008

bolline • rue doneux

Work on servicing this land development has been completed.

ChAstre • tienne gAlop

The land development permit was obtained in December 2007. Once permission has been obtained for the public roads, the work will be put out to tender.

evere • rue du mAquis

Land development and planning permission for the public roads has been received. Work has started on the public roads and will be handed over in 2008.

flÉron • rue de bouny

Work has started on the public roads and will be han-ded over during the first half of 2008.

gAnshoren • 9 provinCes

A new land development and planning permission has been obtained. Work on the public roads is in progress. It will be completed during the first quarter of 2008.

limbourg • Al’trAppe

Work on developing this 74-plot site, for which a land development permit has been obtained, will be com-pleted during the first half of 2008.

sArt-bernArd • rue hArsCAmp

Work on the public roads of this land development will be started in early 2008.

stAvelot • bAsse levÉe

Work on the public roads will be handed over in 2008. This development comprises 33 plots.

tongeren • driekruisen

The land development permit was obtained 2007. Commercialisation of the plots will be commenced in 2008.

wAterloo • ChAmp rodAnge

The site is at a standstill as a result of a litigation with a road-builder. An expert has been appointed by the Courts. A resumption of work, following a new tender, can reasonably be expected during the second half of 2008.

real estate developmeNt - laNd developmeNt

55

stock of laNd (iN m2)

2002 2003 2004 20051 20061 20071

stock of land (in m2)

in use 540,398 594,369 685,543 545,887.66 653,136.41 573,012.06

in reserve 1,993,632 2,118,871 2,012,540 2,557,573.61 2,294,693.14 2,267,505.60

total 2,534,030 2,713,240 2,698,083 3,103,461.27 2,947,829.55 2,840,517.66

sale of plots (in m2) 199,184 229,496 189,405 115,596 184,316 132,582

number of transactions 220 250 268 222 232 141

1. Group share.

soumaGNe

limbourG (al’trappe)


PROJECTS UNDER CONSIDERATIONVilvoorde – Baillonville – Grivegnée – Belgrade – Gembloux – Ciney – Mons – Nivelles – Olne – Soignies – Soumagne – Tinlot – Herstal – Waterloo – Vedrin – Eupen – Walhain – Temploux.

In these various communes, impact studies, applica-tions for land development permits or planning per-mission, town planning and environmental reports

(RUE - rapports urbanistiques et environnementaux or RUP - ruimtelijke uitvoeringsplannen) are in progress and / or under instruction.

Studies will be commenced in 2008 with a view to valorising assets such as those at Bredene, Wavre, Olne, Hannut, Montzen, Stembert, Soignies and Clavier.

56

brusselstower (brussels) - Jaspers, eyers & partners

real estate developmeNt - proJect maNaGemeNt

57

proJeCt management

Four projects were completed in Brussels.

Eleven projects were continued in Brussels and the Grand Duchy of Luxembourg.

Five projects were commenced in Brussels, Waterloo, Charleroi and Namur.

KEy EvENTS



58

The central objective of Project Management activi-

ties in 2007 was to generate profits for the projects

developed or co-developed by the Real Estate

Development Department.

The most important assignments in 2007 were

entrusted by Breevast, Dexia and KBC. Other work was

carried out for Agoria, CFE, Soficom and Fortis.

At the end of 2006 or in early 2007, construction was

completed on some very large office projects : Crown

Avenue, Ellipse Building and Lex. During the second,

third and fourth quarters, most of the work carried out

was on study projects.

2007 was characterised by major asbestos removal acti-vity. Asbestos removal work has started at the sites of the former State Administrative Centre in Brussels, the area surrounding the old Belgacom tower located on boulevard Albert II and the former offices of the Federal Police at rue de Louvain in Brussels.

There was a particular focus on integrating new tech-nologies as well as on the energy performance of buil-dings. These data have been included in studies of new projects. The residential project Albatross Village at Haren was recognised by the Brussels-Capital Region as an exemplary building in terms of sustainable deve-lopment.

real estate developmeNt - proJect maNaGemeNt


albatross villaGe (haren / brussels) - conix architects

59



60

misCellanea

real estate developmeNt - miscellaNea

REfORMEREFORME is a general construction company whose activities include the construction and renovation of buildings, civil engineering, restoration and water purification facilities, operating in both the public and private sectors.

17 sites were handed over during 2007, totalling17,959m² of new-build and 41,266m² of renovatedspaceincluding:

asbestos removal and the interior renovation of Tour du Midi in Brussels on behalf of the National Pensions Office (joint venture),

the replacement of the metal superstructures and fitting out of the infrastructure – Rail line 40 Liège / Maastricht for Infrabel,

the construction of 8 single-family houses (plots 5 to 12) at Berchem-Sainte-Agathe for the company Les Jardins du Nord,

the soundproofing and fitting out of CPAS de Jumet (part 1 : structural work, completion, fire compliance and site supervision – part 2 : replacement of the frames),

the construction of an apartment building and the conversion of the old Malterie at Nivelles into lofts for Capitol Invest,

the extension of the rest home “Les Jardins de Provence” in Anderlecht for the company Château Chenois Gestion,

the extension of an industrial building, the fitting-out of penthouses and the extension of offices at Eupen for the company Ets Chimiques Cloquette,

the partial demolition, reconstruction and reno-vation of wing B of Clinique Fond’Roy in Brussels (part 1. structural work, part 2.1. completion and site supervision, part 2.3. interior carpentry and ironwork, part 3. HVAC – joint venture),

the construction of a rest home, at Avenue St Augustin in Forest for Medimmo,

the construction of a housing complex and the con-version of a warehouse into lofts, at rue de Flandres in Brussels for B.M.T.C.,

baudouiN (brussels)

- bureau ariade

61

cliNique foNd’roy (brussels) - altiplan architects

misCellanea

the construction of a new low-level crossing – line 260 Monceau Formation at km 3,610 (Bedding bridge) at Charleroi Ouest for Infrabel and

work to renovate the low-level crossing located at km 204,748 at Autelbas because of the removal of the high-level crossing no 161 on line 162 Namur / Sterpenich – Town of Arlon for Infrabel (joint venture).

In addition, themain projects still underway at theendoftheyearare:

the construction of a block of specialised retail units (closed structure) in Brussels for European Building Investment,

the construction of 6 apartments and 19 duplex apart-ments, at Ilot de la Vierge Noire in Arlon for Société Wallonne de Promotion Immobilière,

the construction of a building comprising an under-ground car park, retail units and residential accom-modation with frontage on three public roads, boule-vard Baudouin, rue du Frontispice and rue de l’Arc in Brussels for Groupe Haussmann Belgium,

the conversion and extension of a former military building into a mail distribution centre for the Post Office (covered / non-closed structure) in Belgrade for BN 4,

the conversion and renovation of an office building, the renovation of a residential building, the construc-tion of a new library and the construction of a housing complex in an interior block, at rue Mercelis in Ixelles for Immobiliën Vennootschap van Vlaanderen,

the construction of a high-level crossing on line 161 at Ernage for Infrabel,

the construction of an apartment building at Chaussée de Vleurgat in Ixelles for LGD Waterloo,

the construction of 29 residential units at Dinant for the company A.J.M.J.,

construction work on the 6th sector of outlet VI – col-lectors, transport and delivery to the pumping station – purification station n° 16 at Liège-Sclessin for AIDE (joint venture),

construction of a tunnel under the road (Noreth cor-ridor) at km 4817 for the Town of Eupen,

extension, conversion and renovation work on Château Chenois in Waterloo used as a rest home (castle and convent) for the company Château Chenois Gestion,

construction of 58 apartments in Brussels for Immosoust and

civil engineering work at the Robertville dam at Waimes (re-boring of the passage and service stairs, injection and drainage of the foundations, installa-tion of instrumentation) for Electrabel.

Intermsofoutlook,someoftheprojectsthatwillbecommencedin2008include:

the demolition and renovation of a complex of buil-dings for office use in 7500 Tournai for Compagnie Immobilière de Belgique,

the renewal of the lower bridge platforms on line 117 – Braine Le Comte - Luttre to Manage for the company Infrabel and

pile-driving work (draining) – outlet VI – 6th section – purification station at Liege-Sclessin for AIDE (joint venture).


62 real estate developmeNt - miscellaNea

63

JardiN des sittelles (brussels / woluwe-saint-lambert) - trio


64 coNsolidated accouNts

65AnnuAl report 2007 - compAgnie immobilière de belgique

Consolidated aCCounts

Ferme deS 4 SApinS (Wavre) - dessin et construction

66 conSolidAted AccountS

attention il y a de fausses couleurs dans le tableau pour la sortie

inCome statement(note 1) (in tHouSAnd eur)

Notes 31-12-2007 31-12-2006

operatiNgiNcome 176620 232392

Turnover 2 134 310 228 657

Otheroperatingincome 3 42 310 3 735

operatiNgexpeNses -163529 -208991

Purchases 4 -108 059 -194 024

Changeininventory 4 -1 219 20 978

Personnelexpenses -11 310 -10 399

Amortisation,depreciationandimpairmentofassets 5 -9 987 -3 353

Changeinthefairvalueofinvestmentproperty -121 409

Otheroperatingexpenses 6 -32 833 -22 602

operatiNgresult 13091 23401

Financialexpenses -10 321 -14 460

Financialincome 3 661 2 624

FiNaNcialresult 7 -6660 -11836

shareiNtheresultoFcompaNiesaccouNted Forbytheequitymethod 8 3786 1675

resultbeForetaxes 10217 13240

iNcometaxes 9 -1017 -5636

resultFromcoNtiNuiNgoperatioNs 9200 7604

resultFromdiscoNtiNuedoperatioNs 10 40996 12564

resultFortheyear 50196 20168

Shareofminorityinterests -26 15

shareoFcompagNieimmobilièredebelgique 50222 20153

Basicearningsanddilutedearningspershare(inEUR) 11

-Resultofthecontinuingoperations 2.23 1.84

-Resultoftheyear 12.18 4.89


attention il y a de fausses couleurs dans le tableau pour la sortie

assets Notes 31-12-2007 31-12-2006

NoN-curreNtassets 27284 90726

Intangibleassets 45 72

Property,plantandequipment 12 2 182 2 069

Investmentproperty 13 3 186 66 489

Associatesaccountedforundertheequitymethod 14 19 929 19 581

Participatinginterestsavailableforsale 15 776 782

Deferredtaxassets 16 519 1 210

Othernon-currentassets 17 647 523

curreNtassets 393131 430573

Inventories 18 224 639 302 336

Tradereceivables 19 18 558 51 595

Taxreceivables 97 597

Othercurrentassets 20 17 105 13 567

Cashandcashequivalents 21 132 732 62 478

totalassets 420415 521299

equityaNdliabilities Notes 31-12-2007 31-12-2006

equity 22 206194 194813

equityshareoFcompagNieimmobilièredebelgique 206170 194764

Capital 100 285 100 285

Reserves 105 935 93 389

Translationdifferences -50 1 090

miNorityiNterests 24 49

NoN-curreNtliabilities 49665 104939

Pensionsandsimilarobligations 23 1 572 1 832

Provisions 24 3 991 1 410

Deferredtaxliabilities 16 1 002 3 720

Financialdebts 21 29 475 97 977

Tradepayables 25 13 625

curreNtliabilities 164556 221547

Provisions 24 7 800 2 327


Tradepayables 25 40 237 38 174

Taxliabilities 2 778 3 156

Othercurrentliabilities 26 21 972 41 992

totalequityaNdliabilities 420415 521299

BalanCe sheet(note 1) (in tHouSAnd eur)


Cash Flow statement(note 1) (in tHouSAnd eur)

Notes 31-12-2007 31-12-2006

Operatingresult 13 091 23 401

Amortisation,depreciationandimpairmentofassets 9 987 3 353

Changeinthefairvalueofinvestmentproperty 121 -409

Changeinprovisions 8 565 -566

cashFlowFromoperatioNsbeForechaNgesoFworkiNg capitalaNdtaxes 31764 25779

Changeinworkingcapital 27 33 054 1 383

cashFlowFromoperatioNsbeForepaidtaxes 64818 27162

Paidtaxes -4 558 -9 193

cashFlowFromoperatiNgactivities 60260 17969

Acquisitionsofparticipatinginterests -150

Disposalofparticipatinginterests 28 26 585 1 124

Dividendscollectedfromsubsidiariesconsolidated bytheequitymethod 2 130 1 065

Acquisitionsanddisposalsoffixedassets -650 -912

Changeininterestsavailableforsaleandotherfixedassets -135 173

cashFlowFromiNvestiNgactivities 27780 1450

Changeinborrowings 29 -50 719 5 833

Netfinancialcosts -6 830 -11 812

fromwhich:receivedinterests 3 596 2 180

paidinterests -9 927 -13 491

otherfinancialresults -499 -501

Paiddividends 30 -37 922 -6 183

Retirementofownshares 285

cashFlowFromFiNaNciNgactivities -95471 -11877

cashFlowFromcoNtiNuiNgoperatioNs -7431 7542

cashFlowFromdiscoNtiNuedoperatioNs 31 77685 -910

NetchaNgeiNcashaNdcashequivaleNts 70254 6632

Impactofexchangeratefluctuation 17

cashaNdcashequivaleNtsatbegiNoFtheyear 62478 55829

cashaNdcashequivaleNtsatyeareNd 132732 62478


statement oF Changes in equity(in tHouSAnd eur)

Equity REtainEd OthER tRansla- Equity MinORity tOtal EaRnings REsERvEs tiOn tObE intEREsts Equity diffEREncEs allOcatEd tOthE gROup

bookvalueasat01-01-2006beFore chaNgeoFtheaccouNtiNgpriNciples 100285 80144 -285 1125 181269 1 181270

Impactofchangeoftheaccounting principles1 -151 -151 -151

bookvalueasat01-01-2006 100285 79993 -285 1125 181118 1 181119

Resultfortheyear 20 153 20 153 15 20 168

Translationdifferences -35 -35 -35

subtotaloFiNcomeaNd expeNsesFortheyear 20153 -35 20118 15 20133

Dividendspaidouttotheshareholders -6 183 -6 183 -6 183

Otherchanges 285 285 33 318

chaNgesiNtheyear 13970 285 -35 14220 48 14268

bookvalueasat31-12-2006beFore chaNgeoFtheaccouNtiNgpriNciples 100285 93963 1090 195338 49 195387

Impactofchangeoftheaccounting principles1 -574 -574 -574

bookvalueasat31-12-2006 100285 93389 1090 194764 49 194813

Resultfortheyear 50 222 50 222 -26 50 196

Translationdifferences -1 140 -1 140 -1 140

Actuariallossesondefinedbenefitfunds recogniseddirectlyinretainedearnings 246 246 246

subtotaloFiNcomeaNdexpeNses Fortheyear 50468 -1140 49328 -26 49302

Dividendspaidouttotheshareholders -37 9222 -37 922 -37 922

Otherchanges 1 1

chaNgesiNtheyear 12546 -1140 11406 -25 11381

bookvalueasat31-12-2007 100285 105935 -50 206170 24 206194

The capital is made up by 4,121,934 ordinary shares without par value.

A gross unit dividend of 12.00 EUR per share will be proposed at the General Meeting on 14th May 2008 : gross interim unit dividend of 7.20 EUR paid in September 2007, gross final unit dividend of 4.80 EUR to be paid in May 2008.

The gross final dividend, i.e. 19,785 KEUR, was not recognised as debt in the financial statements.

1. Related to the application of the IAS 19 standard - Employee Benefit - See note 2 of the accounting principles.2. Dividend for the year 2006 of 1.50 EUR gross per share and interim dividend for the year 2007 of 7.20 EUR gross per share.


1.geNeraliNFormatioN

Compagnie Immobilière de Belgique (hereafter named the “Company”) is a limited company incorporated in Belgium. The address of its registered office is Avenue J. Dubrucq 175, box 1 at 1080 Brussels.

2.statemeNtoFcompliaNcewithiFrs

The consolidated financial statements have been pre-pared in accordance with IFRS (International Finan-cial Reporting Standards) as adopted in the European Union. The Board of Directors settled the consolidated financial statements and approved their publication on 19th March 2008.

The Company applied the following provisions as from this accounting year :

IAS 19 – Employee Benefits (revised in December 2004). The Company elected the option to recognize actuarial gains and losses on defined-benefit plans directly in equity. This decision entailed a retroactive restatement of the equity in the opening balance of the year 2006.

IFRS 7 – Financial Instruments : Disclosures. The impact of the adoption of IFRS 7 and the changes to IAS 1 – Presentation of the financial statements has been to expand the disclosures provided in these financial statements regarding the Group’s financial and capital risk management.

The Group did not elect for early application of the fol-lowing new standards and interpretations :

Amendment to IAS 23 – Borrowing Costs (applicable for annual periods beginning on or after 1st Janu-ary 2009). The amended standard will require the capitalization of borrowing costs incurred during the construction of an asset prospectively as from 2009.

IFRS 3 – Business Combinations (revised in January 2008; applicable to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1st July 2009) and IAS 27 - Consolidated and Sep-arate Financial Statements (revised in January 2008; applicable for annual periods beginning on or after 1st July 2009). The revision of those two standards could have a significant impact on the treatment of future business combinations and other equity transactions linked to subsidiaries.

IFRS 8 – Operating Segments (applicable for annual periods beginning on or after 1st January 2009). The application of IFRS 8 that will supersede IAS 14 requires certain disclosures by the Group relating to the origine of the revenue and assets.

IAS 1 - Presentation of Financial Statements (revised in September 2007; applicable for annual periods beginning on or after 1st January 2009). The impact of the application of this standard should be limited to the extent that the Company already presents a statement of comprehensive income (see above).

Amendments to IAS 32 - Financial Instruments : Presentation and IAS 1 - Presentation of Financial Statements – Puttable financial instruments and obli-gations arising on liquidation (annual periods begin-ning on or after 1st January 2009). The Company does not expect adoption to have any material impact.

Amendment to IFRS 2 – Share Base Payment (applica-ble for annual periods beginning on or after 1st Janu-ary 2009). The Company does not expect adoption to have any material impact.

Interpreting IFRIC 11 – IFRS 2 – Group and Treasury Share Transactions (applicable for annual periods beginning on or after 1st March 2007), IFRIC 12 – Serv-ice Concession Arrangements (applicable for annual periods beginning on or after 1st January 2008), IFRIC 13 – Customer Loyalty Programmes (applicable for annual periods beginning on or after 1st July 2008), IFRIC 14 – IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interac-tion (applicable for annual periods beginning on or after 1st January 2008). The Company does not expect adoption to have any material impact.

3.preparatioNaNdpreseNtatioNoFtheFiNaNcialstatemeNts

The consolidated financial statements are presented in thousands of euros.

They are prepared on the historical cost basis, except for investment property, securities held for trading, available-for-sale securities and derivative financial instruments which are measured at fair value.

4.coNsolidatioNrules

The consolidated financial statements include the financial statements of the Company and its subsidi-aries, as well as interests in joint ventures consolidated using the proportionate method and in associated companies accounted for using the equity method.

All intragroup balances, transactions, revenue and expenses are eliminated.

subsidiaries Subsidiaries are companies controlled by the Group. Control is defined as the power to govern the finan-cial and operating policies of the entity so as to obtain

aCCounting PrinCiPles and methods


benefits from its activities. Control is presumed to exist when the Group holds more than half of the vot-ing rights, directly or indirectly.

The financial statements of subsidiaries are included in the consolidated financial statements from the date when control begins until the date when control ends.

interests in joint ventures A joint venture is a contractual agreement whereby the Group and one or several parties agree to under-take an economic activity under joint control. The joint venture agreement generally results in the creation of one or more distinct jointly controlled entities.

The Group consolidates its interests in joint ventures applying the proportionate consolidation method until the date when joint control ends.

interests in associates Associates are entities over which the Group has sig-nificant influence through its participation in their financial and operating policy decisions. They are nei-ther subsidiaries, nor joint ventures of the Group.

Significant influence is presumed if the Group, directly or indirectly, holds 20 % or more but less than 50 % of the voting rights through its subsidiaries.

Interests in associates are accounted for in the consoli-dated financial statements using the equity method, from the date when significant influence begins until the date when it ends. The book value of interests is decreased, if applicable, so as to record any impair-ment of individual interests.

different reporting dates The financial statements of subsidiaries, joint ven-tures and associates with reporting dates other than 31st December (reporting date of the Company) are adjusted so as to take into account the effect of significant transactions and events that occurred between the reporting date of the subsidiary, joint venture or associate and 31st December. The difference between 31st December and the reporting date of the subsidiary, joint venture or associate never exceeds 3 months.

business combinations and goodwill

goodwill Goodwill represents the excess of the cost of the busi-ness combination over the Group’s share in the net fair value of the identifiable assets, liabilities and con-tingent liabilities of the acquired entity at the date of acquisition. Goodwill is reported as an asset and is

not amortised but annually subject to an impairment in value test at reporting date (or more frequently if there are indications of loss in value). Impairment losses are recognised immediately under income and are not reversed in subsequent periods.

Goodwill resulting from the acquisition of an asso-ciate is included in the book value of the associate. Goodwill resulting from the acquisition of subsidiar-ies and joint ventures is presented separately in the balance sheet.

On disposal of a subsidiary, a joint venture or an asso-ciate, the book value of the goodwill is included so as to determine the profit or loss on the disposal.

negative goodwill Negative goodwill represents the excess of the Group’s share in the net fair value of the identifiable assets, liabilities and contingent liabilities of a subsidiary, a joint entity or an associate over the cost of business combination at the date of acquisition. To the extent that a surplus subsists after review and re-evaluation of the values, the negative goodwill is immediately recognised in profit and loss.

5.ForeigNcurreNcies

translation of financial statements of foreign entities The balance sheets of foreign companies are trans-lated in EUR at the official year-end exchange rate and income statements are translated at the average exchange rate for the financial year.

Translation differences resulting therefrom are included under shareholders’ equity under “transla-tion differences”. Upon disposal of an entity, transla-tion differences are recognised in profit and loss.

transactions in foreign currencies in group companies Transactions are first recorded at the exchange rate prevailing on the transaction date. At each end of the financial year, monetary assets and liabilities are converted at the exchange rates on the balance sheet date. Gains or losses resulting from this conversion are recorded as financial result.

6.iNtaNgibleassets

Intangible assets are recorded in the balance sheet if it is likely that the expected future economic ben-efits which may be allocated to assets will flow to the entity and if the cost of the assets can be measured reliably.

Intangible assets are measured at cost less accumu-lated amortisation and any impairment losses.


Intangible assets are amortised using the straight-line method on the basis of the best estimate of their useful lives. The amortisation period and method are reviewed at each reporting date.

7.taNgibleassets

Tangible assets are measured at cost less accumulated depreciation and any impairment losses. Fixed assets are depreciated prorata temporis on a straight-line basis over their useful lives. Useful lives have been determined as follows :

buildings : 20 to 50 years,

furniture and equipment : 3 to 10 years,

right of building, emphyteutic lease or long lease : according to the duration of the right or the life span of the related asset, whichever is shorter,

installations, complexes, machinery and specific equipments : 5 to 20 years.

Land has an unlimited useful life and therefore it is not depreciated.

Subsequent expenses related to tangible assets are only capitalised if it is likely that future economic ben-efits associated with the item will flow to the entity and if the cost of the item can be measured reliably.

Buildings under construction for manufacturing, leas-ing or administrative purposes are recorded at cost less any impairment loss. Depreciation of these assets begins when the assets are ready to be used.

8.iNvestmeNtproperty

Investment property is measured in accordance with the fair value model of IAS 40 – Investment property. It represents real property (land and / or buildings) held by the Group so as to earn rent and / or create value for property rather than use or sell it. Invest-ment property is initially measured at cost and subse-quently carried at fair value. Any change in fair value is directly recognised in the income statement. At the end of the construction or development phase of an item of investment property, the difference between its cost and fair value is immediately recognised in profit and loss.

9.leases

finance lease

Assets held by the Group under finance lease are ini-tially recognised at their fair value or at the present value of the minimum lease payments, whichever is lower. The corresponding obligation to the lessor regarding this asset is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between financial expenses and the decrease in lease obligation at a con-stant interest rate with respect to the remaining debt balance. Financial expenses are directly recognised in profit and loss. Assets held under finance leases are depreciated on a straight-line basis over their expected useful lives or the lease term, whichever is shorter.

operating lease

Lease payments under an operating lease are rec-ognised as expenses in the income statement on a straight-line basis over the lease term.

10.FiNaNcialiNstrumeNts

Financial assets and financial liabilities are recog-nised in the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument.

trade receivables

Short term trade receivables are measured at nominal value less appropriate allowances for estimated irre-coverable amounts. An assessment of the permanent character of doubtful trade receivables is carried out and any write-downs are recorded.

cash and cash equivalents

Cash includes cash on hand and demand deposits (deposits of less than 3 months). Cash equivalents are very short term, highly liquid investments that are subject to an insignificant risk of change in value.

Cash and cash equivalents are carried in the balance sheet at nominal value.

shareholders’ equity

Issue costs that may be directly allocated to an equity transaction are recorded as a deduction from equity. As a consequence, capital increases are recorded at the proceeds received, net of issue costs. Similarly, equity transactions on own participation are recognised directly under shareholders’ equity.

bank borrowings and overdrafts

Interest-bearing bank borrowings and overdrafts are recorded at the cash amount, less any transaction costs. After the initial recording they are measured at amortised cost. Any difference between the received consideration and the expected exit value is recog-nised under income over the term of the borrowing using the effective interest rate.

trade payables

Short-term trade payables are recorded at their nomi-nal value.


derivative financial instruments and hedging transactions

Derivative financial instruments are initially meas-ured at cost and subsequently carried at their fair val-ues. The method of recognising the unrealised result from derivatives depends on the nature of the hedged item. On the date a derivative contract is entered into, the instrument is designated either as a hedge of the fair value of recognised assets or liabilities (fair value hedge) or as a hedge of future cash flows (cash flow hedge). Changes in the fair value of derivative finan-cial instruments designated as fair value hedge are recorded in profit and loss, in addition to the changes in the fair value of the hedged asset or liability. With respect to cash flow hedges, the changes in the fair value are recognised under shareholders’ equity. The ineffective hedging portion is recorded directly in profit and loss.

The changes in the fair value of derivative instruments that do not meet the hedge accounting requirements are recognised directly under income.

11.coNstructioNcoNtracts

Contract proceeds and costs are recognised according to the stage of completion of the contract based on the cost method (the relation between the costs already accrued for work performed and the total estimated contract costs) excluding the costs that do not reflect the work performed (land costs, goodwill allocated to the land, installation costs, etc.).

Contract proceeds include the amounts agreed to in the initial contract and in its amendments, indemni-ties, and other bonuses and incentive payments, if it is likely that they will be acquired and if they can be reliably measured.

Contract costs include costs that relate directly to the specific contract, expenses that may be allocated to contract activity in general and that may be reason-ably allocated to the contract, and other similar costs that may be specifically invoiced to the customer under the terms of the contract.

If it seems that total contract costs will exceed total contract proceeds, the expected loss is immediately recognised as an expense.

Interests during construction are not capitalised.

12.iNveNtories

Inventories are measured at cost or net realisable value, whichever is lower.

The acquisition cost of purchased goods includes acquisition cost and incidental expenses. For finished goods and work in progress, the costprice takes into account direct expenses and a portion of production overhead without including administrative and finan-cial expenses.

When specific identification is not possible, cost is determined using the weighted average cost method. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated cost necessary to make the sale. The impairment in value or loss on inventories to bring them to their net realisable value is recognised as an expense in the year when the impairment in value or loss occurs.

13.provisioNs

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, when it is likely that an outflow of resources will be necessary to settle the obligation and when a reliable estimate of the amount of the obliga-tion can be made.

The amount recognised as a provision is the best esti-mate of the expenditure required to settle the present obligation if necessary.

warranties

A provision for warranties is made when underlying products or services are sold. The measurement of the provision is based on historical data and by weighing all possible outcomes to which probabilities are asso-ciated (expected value method).

14.post-employmeNtbeNeFits

The current post employment benefit plan of the Group is a defined benefit plan.

For such a plan, the cost of corresponding commit-ments is determined using the Projected Unit Credit Method, with present values being calculated at year end.

The amount recognised in the balance sheet repre-sents the present value of commitments in terms of the defined benefit pension plans, less the fair value of plan assets and costs of rendered services not yet recognised. Any asset resulting from this calculation is limited to the present value of possible payments for the Group and the decreases in future contributions to the plan.


Actuarial gains and losses are directly recorded in the equity and are presented in the statement of changes in equity.

15.graNtsrelatedtoassetsoriNvestmeNtsubsidies

Received government grants related to assets or investment subsidies are recognised in the balance sheet (presented under other long-term liabilities or other short-term liabilities) as deferred income. They are recognised as income in the same way as the asset margin to which they relate.

16.reveNue

Group revenue comes mainly from Real Estate Devel-opment activities (including Project Management services) and also from Construction activities and lease agreements.

Revenue from Real Estate Development and Construc-tion activities is measured at the fair value of the con-sideration received or receivable.

With respect to operating leases, rent is recognised under income on a straight-line basis over the term of the lease, even if payments are not made on this basis. Lease incentives granted by the Group in negotiating or renewing an operating lease are recognised as a reduction of the lease income on a straight-line basis over the term of the lease.

17.expeNses

impairment in value of assets

At each reporting date, the book value of tangible and intangible assets of the Group is reviewed so as to determine whether there is any indication of impair-ment loss. If any such indication exists, the recovera-ble amount of the asset is estimated and, if applicable, an impairment loss is recognised in profit and loss if the recoverable amount is lower than the book value. When the recoverable amount may not be individu-ally determined for an asset, including goodwill, it is measured at the level of the cash generating unit to which the asset belongs.

The recoverable amount of an asset or cash-gener-ating unit is its fair value less selling costs or its use value, whichever is higher. The latter is the present value of expected future cash flows from the asset or the respective cash generating unit.

A reversal of impairment loss is recognised under income if the recoverable amount exceeds the net book value. However, the reversal may not lead to a higher book value than the value that would have

been determined if no impairment loss had been ini-tially recorded on this asset (cash-generating unit),

borrowing costs

Borrowing costs include interests on bank overdrafts and short- and long-term borrowings, amortisation of share premiums or repayment of borrowings, amorti-sation of accrued incidental borrowing costs. The costs are recognised in profit and loss for the financial year when they are incurred.

18.taxes

Income tax for the year includes current and deferred tax. Current and deferred income taxes are recognised in profit and loss only if they relate to items recognised directly under shareholders’ equity, in which case they are also recognised under shareholders’ equity.

Current tax is the amount of income taxes payable (or recoverable) on the profit (or loss) in a financial year and the adjustments to tax charges of previous years.

Deferred tax is recognised using the liability method of tax allocation, based on timing differences between the book value of assets and liabilities in the consoli-dated accounts and their tax basis.

Deferred tax liabilities are recognised for all taxable timing differences.

Deferred tax assets are only recognised for deductible timing differences if it is likely that in the future they may be charged against taxable income. This criterion is re-evaluated at each reporting date.

19.discoNtiNuedoperatioNs

A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale. Such component represents a separate major line of business or geographical area of opera-tions that can be clearly distinguished, operationally and for financial reporting purposes. The net result of discontinued operations (including possible results on disposal and taxes) is presented separately from the continued operations in the income statement.

20.maiNsourcesoFiNcertaiNtiesrelatedtotheestimatioNs

The deferred tax assets are only recorded as far that they may be in the future used against taxable income.

The tangible and intangible assets with a fixed useful live are straight line depreciated based on the estima-tion of the live time of these fixed assets.


The fair value of the investment properties is esti-mated by independent experts in accordance with the principles as described under note 13 of the financial statements.

As part of the tests of impairment losses, the recov-erable value of an asset is estimated based on the present value of the expected cash flows generated by this asset.

For the provisions, the bookvalue fits with the best estimation of the expense necessary to pay off the present obligation (legal or implicit) at closing date.

The projects in inventory and construction contracts are subject to feasibility studies used for the release of margin and the computation of the rate of comple-tion. At each closing date, the expenses to be incurred are estimated.


notes to the FinanCial statements(in tHouSAnd eur)

1. iNFormatioNbysegmeNt-FiNaNcialiNFormatioNbybusiNesssegmeNt 77

profit and loss 77 cash and cash equivalents items 78 balance sheet items 78 2.turNover 79

3.otheroperatiNgiNcome 79

4.purchases-chaNgeiNiNveNtory 80

5.amortisatioN,depreciatioNaNdimpairmeNtoFassets 80

6.otheroperatiNgexpeNses 81

7.FiNaNcialresult 82

8.shareiNtheresultoFcompaNiesaccouNtedForbytheequitymethod 82

9. iNcometaxes 82

10.resultFromdiscoNtiNuedoperatioNs 83

11.earNiNgspershare 83

12.taNgibleassets 84

13. iNvestmeNtproperty 85

14.subsidiariesaccouNtedForuNdertheequitymethod 85

15.participatiNgiNterestsavailableForsale 86

16.deFerredtaxassetsaNdliabilities 86

17.otherNoN-curreNtassets 87

18. iNveNtories 87

19.tradereceivables 88

20.othercurreNtassets 89

21.Nettreasury 89

22.equity 92

23.peNsioNsaNdsimilarobligatioNs 93

24.provisioNs 94

25.tradepayables 95

26.othercurreNtliabilities 95

27.chaNgeiNworkiNgcapital 96

28.disposaloFpartipatiNgiNterests 96

29.chaNgeiNborrowiNgs 96

30.paiddivideNds 96

31.cashFlowFromdiscoNtiNuedoperatioNs 96

32.coNstructioNcoNtracts 97

33.maiNcoNtiNgeNtassetsaNdliabilities 97

34. iNFormatioNoNrelatedparties 98

35.eveNtssubsequeNttoreportiNgdate 99

36. JoiNtveNtures 99

37.subsidiaries,JoiNtveNturesaNdassociates 99


1. Actual turnover based on market price.

1.iNFormatioNbysegmeNt-FiNaNcialiNFormatioNbybusiNesssegmeNt

The core business of the Company, Real Estate Development, includes the activities of “Offices”, “Residential Development”, “Land Development” and “Project Management” as a support activity.

The Campona Shopping Center building in Budapest and the company Reforme, active in the fields of construc-tion and renovation, are the other activities of the Group. They are included under the Miscellanea section.

Except the Campona Shopping Center, the Group’s activity is carried out mainly in Belgium.

profit and loss

OfficEs REsidEntial land pROjEct dEvElOp- MiscElla- EliMina- cOnsOli- dEvElOp- dEvElOp- Mana- MEnt nEa tiOns datEd MEnt MEnt gEMEnt

2007

“External”turnover 70 784 17 872 10 720 1 148 100524 33786 134310

“Intersegment”sales1 1 133 1133 846 -1 979

“Segment”turnover 70 784 17 872 10 720 2 281 101657 34632 -1 979 134310

operatiNgresult 14208 -4032 3030 -284 12922 169 13091

Financialresult -6660

Companiesaccountedfor bytheequitymethod 3 786 3786 3786

Taxes -1017

resultFromcoNtiNuiNg operatioNs 9200

Resultfromdiscontinued operations 40996 40996

Netresult 50196

2006

“External”turnover 144 640 37 798 10 841 972 194251 34406 228657

“Intersegment”sales1 1 296 1296 2201 -3 497

“Segment”turnover 144 640 37 798 10 841 2 268 195547 36607 -3 497 228657

operatiNgresult 14287 4029 4434 128 22878 523 23401

Financialresult -11836

Companiesaccountedfor bytheequitymethod 1 675 1675 1675

Taxes -5636

resultFromcoNtiNuiNg operatioNs 7604

Resultfromdiscontinued operations 12564 12564

Netresult 20168

bElgiuM abROad tOtal

Turnoverofthecontinuingoperations:at31-12-2007 133 635 675 134 310

at31-12-2006 227 995 662 228 657

Turnoverofthediscontinuedoperations:at31-12-2007 5 212 5 212

at31-12-2006 4 548 4 548


cash and cash equivalents items

OfficEs REsidEntial land pROjEct dEvElOp- MiscElla- cOnsOli- dEvElOp- dEvElOp- Mana- MEnt nEa datEd MEnt MEnt gEMEnt

2007

Operatingresult 14 208 -4 032 3 030 -284 12922 169 13091

Amortisation,depreciation andimpairment 7 079 2 647 5 -41 9690 297 9987

Changeinfairvalue 121 121 121

Changeinprovisions 6 820 1 099 676 281 8876 -311 8565

Changeinworkingcapital 49 154 -10 101 -4 531 129 34651 -1597 33054

operatiNgcashFlowbeForetaxes 77382 -10387 -820 85 66260 -1442 64818

Investmentcashflow 28 674 -146 -4 -23 28501 -721 27780

2006

Operatingresult 14 287 4 029 4 434 128 22878 523 23401

Amortisation,depreciation andimpairment 1 110 1 602 189 12 2913 440 3353

Changeinfairvalue -409 -409 -409

Changeinprovisions -822 13 20 -789 223 -566

Changeinworkingcapital -2 355 8 762 -3 065 223 3565 -2182 1383

operatiNgcashFlowbeForetaxes 11811 14393 1571 383 28158 -996 27162

Investmentcashflow 2 275 -14 42 -33 2270 -820 1450

balance sheet items

OfficEs REsidEntial land pROjEct dEvElOp- MiscElla- cOnsOli- dEvElOp- dEvElOp- Mana- MEnt nEa datEd MEnt MEnt gEMEnt

2007

Segmentassets 155 005 54 248 38 906 532 248691 17024 265715

Unallocateditems1 154700

totalassets 420415

Segmentliabilities 47 636 20 045 4 322 1 322 73325 15872 89197


totalliabilities 214221

2006

Segmentassets 271 479 49 517 33 306 1 542 355844 80284 436128


totalassets 521299

Segmentliabilities 53 785 10 107 3 801 929 68622 17113 85735


totalliabilities 326486

bElgiuM abROad tOtal

Segmentassets31-12-2007 263 414 2 301 265715

Segmentassets31-12-2006 357 565 78 563 436128

1. Unallocated items : Assets : Interests accounted for by the equity method and available for sale - Deferred tax assets - Other non-current assets -Tax receivables - Cash and cash equivalents; Liabilities : Deferred tax liabilities - Financial debts - Tax liabilities.


2.turNover

The components of the turnover are as follows :

31-12-2007 31-12-2006

Assetsale 133 162 227 685

Servicefees 1 148 972

totalturNover 134310 228657

Turnover is allocated as follows per segment :

31-12-2007 31-12-2006

Development:

-Offices1 70 784 144 640

-ResidentialDevelopment2 17 872 37 798

-LandDevelopment3 10 720 10 841

-ProjectManagement 1 148 972

totaldevelopmeNt 100524 194251

Miscellanea4 33 786 34 406

totalturNover 134310 228657

3.otheroperatiNgiNcome

This heading mainly consists of :

31-12-2007 31-12-2006

Gainondisposalofsubsidaries5 37 787

Otheroperatingincome 4 314 3 010

Grants 209 725

totalotheroperatiNgiNcome 42310 3735

Other operating income is allocated by segment as follows :

31-12-2007 31-12-2006

Development:

-Offices 40 875 1 801

-ResidentialDevelopment 826 939

-LandDevelopment 84 160

-ProjectManagement 5 12


Miscellanea 520 823

totalotheroperatiNgiNcome 42310 3735

Ofwhichgrants 209 725

1. Construction contracts Lex in Brussels, South Express Block A in Brussels (Saint-Gilles) and the disposal of the Ellipse Building in Brussels (Schaerbeek) contribute in particular to the “Offices Development” turnover.

2. The “Residential Development” turnover is basically influenced by following promotions : Jardin des Sittelles in Brussels (Woluwe-Saint-Lambert), Jardins de la Couronne in Brussels (Ixelles), Jardins de Jette in Brussels, Omega Court in Brussels (Auderghem), the résidence Fisco Place des Martyrs in Brussels and Egmont House in Brussels.

3. The main land developments contributing to the turnover were those of Genval, Enghien, Erpent,Polleur, Bredene, Vedrin and Meux.4. “Miscellanea” includes the turnover from “Construction” activities.5. These gains relate to the disposals of participating interests in the companies Crown Avenue (project Crown Avenue in Brussels (Ixelles)), Immo

Gaucheret (project Ellipse Building in Brussels (Schaerbeek)) and Soprima (project WestSide Village in Luxembourg).


4.purchases-chaNgeiNiNveNtory

The purchases and the changes in inventory of the financial year 2007 break down as follows by segment :

puRchasEs changEininvEntORy nEtcOsts

Development:

-Offices -46 764 -16 539 -63 303

-ResidentialDevelopment -28 572 12 210 -16 362

-LandDevelopment -7 505 3 079 -4 426

totaldevelopmeNt -82841 -1250 -84091

Miscellanea -25 218 31 -25 187

totalpurchases -108059 -1219 -109278

In addition to the acquisition of the site of Universalis Park in Brussels (Ixelles), the purchases of the Develop-ment segments “Offices” and “Residential” are mainly related to the continuation of the works Lex in Brussels, Ellipse Building in Brussels (Schaerbeek), Omega in Brussels (Auderghem), South Express in Brussels (Saint-Gilles), State Administrative Centre in Brussels, Egmont House in Brussels, Jardin des Sittelles in Brussels (Woluwe-Saint-Lambert), Jardins de Jette and Place des Martyrs in Brussels.

The net costs are to be related to the turnover as mentionned in note 2 above.

The purchases and the changes in inventory of the financial year 2006 broke down as follows by segment :

puRchasEs changEininvEntORy nEtcOsts

Development:

-Offices -137 490 27 946 -109 544

-ResidentialDevelopment -20 661 -12 281 -32 942

-LandDevelopment -9 335 4 848 -4 487

totaldevelopmeNt -167486 20513 -146973

Miscellanea -26 538 465 -26 073

totalpurchases -194024 20978 -173046

5.amortisatioN,depreciatioNaNdimpairmeNtoFassets

Break down as follows :

31-12-2007 31-12-2006

Impairmentlossongoodwill-followingdisposalsofassets -479

Impairmentlossongoodwill-followingestimationofassets -475

Amortisationofintangibleassetsanddepreciationoftangibleassets -564 -518

Impairmentlossesonsubsidiariesconsolidatedbytheequitymethod1 -2 542 -285

Writedownonothernon-currentassets-Increase -18 -97

Writedownoninventory-Increase1 -7 349 -1 937

Writedownoninventory-Decrease 869 228

Writedownontradereceivables-Increase -426

Writedownontradereceivables-Decrease 43 210

amortisatioN,depreciatioNaNdimpairmeNtoFassets -9987 -3353

1. The losses and recorded impairments result from adjustments on projects of which the expected sales value is lower than the book value. They are mainly related to the activities of the segments “Offices” and “Residential Development”.


6.otheroperatiNgexpeNses

Break down as follows :

31-12-2007 31-12-2006

Servicesandothergoods -19 657 -19 977

Provisions -8 565 566

Otherexpenses -4 611 -3 191

otheroperatiNgexpeNses -32833 -22602

Main components of services and other goods :

31-12-2007 31-12-2006

Rentandservicecharges(thisitemincludesmainlyservicecharges fortheregisteredofficeandrentwithrespecttothelease ofequipmentandmachinesintheConstructionsegment) -2 250 -1 794

Thirdpartypayment(thisitemincludesinparticularthefeespaidtothirdparties andrelatedtotheturnover) -14 437 -14 541

Otherservicesandothergoods(includingcompanysupplies, advertising,maintenanceandrepairexpenses,etc.) -2 970 -3 642

totalservicesaNdothergoods -19657 -19977

operatiNgleaseobligatioNs

Totalamountofpaymentsrecognisedunderexpensesfortheyear 989 837

Totalminimumpaymentstobemade:

-withinoneyear 1 002 804

-afteroneyearbutwithin5years 2 244 2 396

Theseamountscorrespondmainlytotherentfortheregisteredofficeandcars.

Amount of fees allocated during the year to SC s.f.d. Deloitte :

31-12-2007 31-12-2006

StatutoryauditfeeswithintheGroup 174 179

Feesforextraordinaryservicesandspecialmissions accomplishedwithintheGroup: 145 90

-Othercertifyingmissions 15 2

-Taxconsultingmissions 124 75

-Othermissionsoutsidetheauditmission 6 13


Main components of the provisions :

31-12-2007 31-12-2006

Provisionsrelatedtothesales -2 351 1 178

Provisionsforlitigations -1 500

Provisionsforevaluation&organisationoftheGroup -4 206

Otherprovisions -508 -612

totalprovisioNs -8565 566

The other operating expenses of -4,611 KEUR mainly concern taxes (property withholding taxes, regional and municipal taxes) not capitalised on assets included in inventory.

7.FiNaNcialresult

The financial result breaks down as follows :

31-12-2007 31-12-2006

-”ProjectFinancing”financialexpenses -5 011 -10 814

-”ProjectFinancing”financialincome 766 1 453

”ProjectFinancing”nettreasurycosts -4 245 -9 361

-”Corporate”financialexpenses -3 796 -4 098

-”Corporate”financialincome 1 484 1 263

”Corporate”nettreasurycosts -2 312 -2 835

Dividendsandinterestsofotherfixedassets 70 178

Translationdifferencesandexchangeratedifferences -173 182

FiNaNcialresult -6660 -11836

8.shareiNtheresultoFcompaNiesaccouNtedForbytheequitymethod

The result of companies accounted for by the equity method affects the “Offices Development” activity.

As last year, this result has favourably been influenced by the continuation of the D4 / D5 project, realised by the SA Promotion Léopold on behalf of the European Parlement.

The companies accounted for by the equity method are listed under note 37.

9.iNcometaxes

Income taxes are as follows :

31-12-2007 31-12-2006

Currenttaxesforthecurrentyear -3 231 -3 015

Currenttaxesforthepreviousfinancialyears -54 -227

Deferredtaxes 2 268 -2 394

totaltaxescharges -1017 -5636


The reconciliation of the actual tax charge with the theoretical tax charge is summarised as follows :

31-12-2007 31-12-2006

Resultbeforetaxes 10 217 13 240

Resultofthecompaniesaccountedforbytheequitymethod -3 786 -1 675

resultbeForetaxesaNdresultoFthecompaNiesaccouNted Forbytheequitymethod 6431 11565

averagetaxatioNrateoF33.99% -2186 -3931

Taximpact:

-non-taxableincome 12 334 5

-non-deductibleexpenses -1 889 -1 234

-taxlossesandtemporarydifferences -11 026 493

-differenttaxratesofaffiliatesoperatingabroad 51 5

Currenttaxesforthepreviousfinancialyears -13 -227

Deferredtaxesforthepreviousfinancialyears 1 712 -747

iNcometaxexpeNserecogNised -1017 -5636

10.resultFromdiscoNtiNuedoperatioNs

This result relate to the Campona Shopping Center building in Budapest, of which the property company Campona ‘99 Kft has been sold in November 2007. The components of this account are :

31-12-2007 31-12-2006

Capitalgainonsaleofparticipation 41 651

Changeinfairvaluefortheyear -2 396 11 348

Otherelements 1 741 1 216

resultFromdiscoNtiNuedoperatioNs 40 996 12 564

11.earNiNgspershare

Basic earnings and diluted earnings per share are determined using the following information :

31-12-2007 31-12-2006

Netresultfromcontinuingoperations 9 200 7 604

Group’sshareinthenetresultfortheyear 50 222 20 153

Averagenumberofsharesconsideredforbasicearningsanddilutedearnings 4 121 934 4 118 112

Basicearningsanddilutedearningspershare(inEUR) ofthediscontinuedoperations 9.95 3.05


12.taNgibleassets

Tangible assets refer to the following segments :

31-12-2007 31-12-2006

Development:

-Offices/ResidentialDevelopment 123 252



Miscellanea(mainlyConstruction) 2 010 1 775

taNgibleassets 2182 2069

The components of tangible assets are as follows :

installatiOns, fuRnituRE, OthER tOtal MachinEs EquipMEnt tangiblE andtOOls andfixtuREs assEts

grossbookvalue

oN1stJaNuary2006 1442 2643 2811 6896

Acquisitions 194 369 289 852

Disposalsandretirements -44 -44

Transfers -141 -205 -32 -378

oN31stdecember2006 1495 2807 3024 7326


Disposalsandretirements -244 -13 -257

Transfers -175 -175

oN31stdecember2007 1672 2765 3105 7542

accumulateddepreciatioN

oN1stJaNuary2006 -1205 -2286 -1697 -5188

Depreciationcharges -101 -205 -141 -447

Transfers 141 205 32 378

oN31stdecember2006 -1165 -2286 -1806 -5257

Depreciationcharges -132 -298 -92 -522

Disposals 244 244

Transfers 175 175

oN31stdecember2007 -1297 -2340 -1723 -5360

Netbookvalue

oN31stdecember2006 330 521 1218 2069

oN31stdecember2007 375 425 1382 2182

The other tangible assets include mainly a building held in finance lease and used by the Construction segment for its own purposes.


finance lease

31-12-2007 31-12-2006

Netbookvalueoffinancialleases includedintheprevioustable 1 172 989

Amountspayableasfinancelease Minimum Current Minimum Current payments payments payments payments

-Within1year 142 136 75 72

-Fromthe2ndyeartothe5thyearinclusive 379 338 277 244

13.iNvestmeNtproperty

Investment property is measured by independent experts in accordance with the fair value model of the IAS 40 standard.

Investment property represents real estate property held by the Group to earn rentals and to create value for the property rather than use or sell it.

The decrease in this account relate to the disposal of the participating interest in the company Campona ‘99 Kft, owner of the Campona Shopping Center in Budapest.

Investment property evolves as follows :

31-12-2007 31-12-2006

FairvalueoN1stJaNuary 66489 50898


Translationdifferences -445 244

Changeinthefairvaluerecognisedintheincomestatement -2 517 12 631

Disposalsandretirements -63 401 -30

FairvalueoN31stdecember 3186 66489

On 31 december 2007, this account contains a landed property under leasehold of an office building.

The fair value of this asset is estimated considering the transfer charges to be on charge of the purchaser.

The withheld discount rate is 8.21 %.

14.subsidiariesaccouNtedForuNdertheequitymethod

Subsidiaries consolidated by the equity method refer to the “Offices Development” activity.

31-12-2007 31-12-2006

valueasat1stJaNuary 19581 20365

Shareinresult 3 786 1 675

Acquisitionsandtransfersfromaccounts 1 234

Disposals -1 109

Dividendspaidbythecompanies -2 130 -1 065

Impairmentsinvalue -2 542 -285

chaNgesFortheyear 348 -784

valueasat31stdecember 19929 19581

The subsidiaries consolidated by the equity method are listed under note 37.


information regarding companies accounted for by the equity method (100 %) :

31-12-2007 31-12-2006

Totalassets 243 507 349 545

Totalliabilities 179 565 288 125

Netassets 63 942 61 420

Turnover 172 059 88 023

Totalnetresult 10 852 4 931

Guaranteesobtainedfromthirdparties 16 972 18 194

Guaranteesconstitutedbythirdpartiesonbehalfofthecompanies 8 145 4 264

15.participatiNgiNterestsavailableForsale

The participating interests available for sale moved as follows :

31-12-2007 31-12-2006

valueasat1stJaNuary 782 1119

Acquisitions 11 1

Disposals -321

Other -17 -17

chaNgesFortheyear -6 -337

valueasat31stdecember 776 782

The book value as at 31st December 2007 of the participating interests available for sale is considered to be repre-sentative of their fair value.

16.deFerredtaxassetsaNdliabilities

Deferred tax assets or liabilities are recorded in the balance sheet on deductible or taxable timing differences, tax losses carried forward and tax credits.

Changes in the deferred taxes in the balance sheet having occurred over the financial year are recorded in the income statement unless they refer to items directly recognised under the equity.

Deferred taxes on the balance sheet refer to the following timing differences :

dEfERREdtaxassEts dEfERREdtaxliabilitiEs

31-12-2007 31-12-2006 31-12-2007 31-12-2006

Constructioncontracts 125 36

Employeebenefitsobligations 172 170

Taxlosses 222 1 004

Inventories 770 3 007

Investmentproperty 215 622

Provisions&Other 17 91

total 519 1210 1002 3720


assEts liabilitiEs tOtal

oN1stJaNuary2007 1210 -3720 -2510

Deferredtaxexpenseandincomerecordedinprofitandloss -44 2 312 2 268

Disposals-Deconsolidation -647 406 -241

chaNgesFortheyear -691 2718 2027

oN31stdecember2007 519 -1002 -483

31-12-2007 31-12-2006

taxlossamouNtsForwhichNodeFerredtaxasset wasrecogNizediNthebalaNcesheet,Fromwhich: 34157 29488

Expiringattheendof2007 602

Expiringattheendof2008 2 812



Expiringattheendof2013 2 143 2 812


Nottime-limited 29 401 19 918

17.otherNoN-curreNtassets

The other non-current assets are made up of paid guarantees and securities.

18.iNveNtories

Allocation of this position by segment is as follows :

31-12-2007 31-12-2006

Development:

-Offices 137 067 228 734

-ResidentialDevelopment 48 917 40 180

-LandDevelopment 37 821 32 672


Miscellanea 834 750

iNveNtories 224639 302336

The book value of inventories is as follows :

31-12-2007 31-12-2006

iNveNtoryasat1stJaNuary 302336 283731

Purchasesfortheyear 69 455 120 150

Disposalsoftheyear(includingdeconsolidation) -140 672 -99 296

Transfersfromaccounts -540

Write-offsrecorded -6 695 -1 937

Write-offsreversed 215 228

movemeNtsduriNgtheyear -77697 18605

iNveNtoryasat31stdecember 224639 302336

Bookvalueofinventorieswhicharepledgedforbankloansecurities 150 255 221 981


Break down of the movements of the year per segment :

puRchasEs dispOsals& WRitE-Offs nEt tRansfERs

Development:

-Offices 33 468 -121 367 -3 768 -91 667

-ResidentialDevelopment 28 445 -16 944 -2 764 8 737

-LandDevelopment 7 536 -2 387 5 149

totaldevelopmeNt 69449 -140698 -6532 -77781

Miscellanea 6 26 52 84

total 69455 -140672 -6480 -77697

The purchases of the “Offices Development” segment are mainly influenced by the projects Universalis Park - State Administrative Centre - Ellipse Building - Omega Court and South Express; the disposals include the projects Ellipse Building - Crown Avenue and WestSide Village.

The purchases and the sales of the “Residential Development” mainly relate to the projects Universalis Park, Jardins de Jette, Egmont House, Omega Court, Jardin des Sittelles, Albatross Village and Place des Martyrs.

market risks and uncertainties

With the exception of the risks and uncertainties inherent in the activities carried out by the Company (in par-ticular a significant increase in interest rates, a downturn in the real estate market, changes in global economic trends, loss of interest by investors in the real estate market, a tightening of credit conditions by the banks, …) and in view of the building permits already obtained, the Board of Directors is confident that it will obtain the neces-sary permits to develop the Group’s existing projects and, on the basis of the information currently available, is not aware of any major risks or uncertainties that could significantly damage the Company’s future results.

19.tradereceivables1

Trade receivables refer to the following segments :

31-12-2007 31-12-2006

Development:

-Offices 1 841 32 064


-LandDevelopment 992 1 222



Miscellanea(mainlyConstruction) 13 621 12 105

total 18558 51595

The decrease in trade receivables “Offices Development”, -30,223 KEUR, is mainly related to the projects Extension of the Court of Justice in Mons, Ecluse in Charleroi and Lex in Brussels.

1. The Board of Directors believes the book value of this account reflects its fair value.


1. The Board of Directors believes the book value of this account reflects its fair value.

credit risk

The credit risk is related to the possible failing of the customers in respecting their commitments towards the Group. Due to the nature of the customers, being mainly known investors, public clients or equivalent, the Group does not use instruments covering the customer credit risk.

The customers are closely followed up and adequate impairments are recorded as to cover the amounts that con-sidered being irrecoverable.

At 31st December 2007 there was no concentration of credit risk with a sole third party.

The maximum risk amounts to the book value of the receivables.

Therecordedimpairmentsoftradereceivablesamountto: -1 249 -1 092

20.othercurreNtassets1

The components of this account are :

31-12-2007 31-12-2006

Otherreceivables 16 141 11 083

fromwhich: prepaidpurchasesofinventories 2 500

advancestojointventuresandassociates 5 863 3 005

taxes(otherthanincometaxes)andVATreceivable 2 811 370

other 7 467 5 208

Deferredchargesandaccruedincome 964 2 484

total 17105 13567

and are related to the following segments :

Development:

-Offices 12 776 8 020





Miscellanea 559 2 901

total 17105 13567

21.Nettreasury1

The Group’s net treasury is the balance between the available cash and the financial debts (short term and long term). It is 11,488 KEUR as at 31st December 2007 compared to -171,397 KEUR as at 31st December 2006.

31-12-2007 31-12-2006

Cashandcashequivalents(+) 132 732 62 478

Long-termfinancialdebts(-) 29 475 97 977

Short-termfinancialdebts(-) 91 769 135 898

Nettreasury 11488 -171397


available cash and cash equivalents

Cash deposits and cash at bank and in hand amount to 132,732 KEUR compared to 62,478 KEUR at the end of 2006, representing an increase of 70,254 KEUR.

The available cash moved as follows :

31-12-2007 31-12-2006

Termdeposits 126 816 54 927

Cashatbankandinhand 5 916 7 551

availablecashaNdcashequivaleNts 132732 62478

The explanation of the change in available cash is given in the consolidated cash flow table.

financial debts

Financial debts decrease with 112,631 KEUR, from 233,875 KEUR at 31st December 2006 to 121,244 KEUR at 31st December 2007.

The components of financial debts are as follows :

31-12-2007 31-12-2006

Financeleasedebts 379 286

Debtstowardcreditinstitutions 29 096 97 691

loNg-termFiNaNcialdebts 29475 97977

Financeleasedebts 278 265

Debtstowardcreditinstitutions 91 491 135 633

short-termFiNaNcialdebts 91769 135898

totalFiNaNcialdebts 121244 233875

Financial debts evolve as follows :

loNg-termFiNaNcialdebtsasat1stJaNuary 97977 170074

Contracteddebts 24 732 57 453

Repaiddebts -1 484 -66 936

Disposals-Deconsolidation -24 550

Debtstransferredtoshortterm -67 200 -62 614

loNg-termFiNaNcialdebtsasat31stdecember 29475 97977

short-termFiNaNcialdebtsasat1stJaNuary 135898 57968

Contracteddebts 4 845 26 059

Repaiddebts -78 812 -10 743

Disposals-Deconsolidation -37 362

Debtstransferredfromlongterm 67 200 62 614

short-termFiNaNcialdebtsasat31stdecember 91769 135898


The main items of the Group’s financial debts are the floating rate bank loans (Euribor 1 to 12 months + commer-cial margin). All the financial debts are in EUR. These credits are :

CorporateCredits 67 200 68 600

ProjectFinancingCredits(specifictoprojects) 54 044 165 275


amouNtoFdebtscoveredwithrealsecurities 118111 215874

interest rate risk

In the frame of the availability of long term credits, Corporate or Project Financing, the Group uses financial instruments mainly for the hedging of interest rates.

At 31st December 2007, the nominal value of the debts subject to coverage is 17,063 KEUR. The market value of hedgings recorded at 31st December 2007 and according to the independent expert reports amounts to 110 KEUR compared to 31 KEUR at 31st December 2006.

The financial debt schedule is summarised as follows :

Duein 2008 2009 2010and> tOtal

Totalamountofdebts 92 262 27 669 1 313 121244

-fromwhichamount ofdebtswithvariablerate 92 262 11 919 104181

-fromwhichhedgedamount ofdebtswithvariablerate 15 750 1 313 17063

On the basis of the situation as per 31st December 2007, each change in interest rate of 1 % involves an annual increase or decrease of the interest charge on debts at variable rate of 1,042 KEUR.

cash risk The Company starts only new projects in case of appropriate financing, corporate, specific financing or pre-sale. As a consequence, the cash risk related to the progress of a project is very limited.

financial commitments The Group is, for the majority of the mentionned financial debts, subject to a number of financial commitments. These commitments include in particular ratios of coverage, solvency and charges.

At 31st December 2007, as for the previous years, the Group was in conformity with all these financial commit-ments.

risk of fluctuation in foreign currencies The Group, whose activity is mainly located at 31st December in Belgium, does not resort to any exchange rate hedging.


22.equity

The equity is 206,194 KEUR compared to 194,813 KEUR as at 31st December 2006, representing an increase of 11,381 KEUR.

A gross unit dividend of 12.00 EUR per share will be proposed at the General Meeting on 14th May 2008.

A gross unit intermediate dividend of 7.20 EUR per share was paid during the year 2007, total gross dividend of 29,678 KEUR.

The total gross final dividend, i.e. 19,785 KEUR, was not recognised as debt in the financial statements.

The components of the equity are as follows :

31-12-2007 31-12-2006

Capital 100 285 100 285

Retainedearnings 105 935 93 389

-fromwhichLegalreserve 10 028 10 028

Translationdifferences -50 1 090

Minorityinterests 24 49

equity 206194 194813

equityasat1stJaNuary 194813 181270

Resultfortheyear 50 196 20 168

Paidoutdividends -8 244 -6 183

Paidoutinterimdividend2007 -29 678

Actuariallossesondefinedbenefitfundsrecogniseddirectlyinequity 246 -725

Disposalof7,836ownsharesheldbysubsidiariesonthestockexchange 285

Changeintranslationdifferences -1 140 -35

Movementsonminorityinterests 1 33

movemeNtsFortheyear 11381 13543

equityasat31stdecember 206194 194813

risk management related to the capital

Compagnie Immobilière de Belgique is attending to optimise the structure of its permanent capital through a balance between capital and long term debts. The target is to maximise the value for the shareholder while main-taining the required flexibility to achieve the development projects. Other elements, like the expected return on each project and the respect of a number of balance sheet ratios, influence the decision taking.


23.peNsioNsaNdsimilarobligatioNs

The pensions and similar obligations cover the obligations of the Company as far as the group insurance is concerned.

The amount recognised in the balance sheet represents the present value of commitments in terms of set benefit pension plans adjusted in line with profits or actuarial losses less the fair value of plan assets and costs of ren-dered services not yet recognised.

31-12-2007 31-12-2006

amouNtsrecordediNthebalaNcesheet

Presentvalueoffundeddefinedbenefitobligations 4 308 4 465

Fairvalueofplanassetsattheendoftheperiod -2 736 -2 633

FuNdedstatusdeFicit 1572 1832

Actuarialdifferencesnotrecognizedinthebalancesheet -479 -725

subtotal 1093 1107

Actuariallossesondefinedbenefitfundsrecogniseddirectlyinequity 479 725

liabilitiesrecogNisediNthebalaNcesheet 1572 1832

movemeNtsoFtheNetobligatioNsiNthebalaNcesheet

obligatioNsasat1stJaNuary 1107 1123

Totalexpensebreaksdownasfollows: 305 241

-costofservicesrenderedduringtheyear 203 198

-financialcost 189 156

-expectedreturnonplan’sassets -113 -112

-actuarialdifferences 26 -1

Companycontributions -319 -257

obligatioNsasat31stdecember 1093 1107

preseNtvalueoFtheobligatioNsasat1stJaNuary 4465 3687

Costofservicesrenderedduringtheperiod 266 257

Financialcost 189 156

Lossresultingfromtheactuarialassumption -273 512

Paidbenefits -339 -147

preseNtvalueoFtheobligatioNsasat31stdecember 4308 4465

FairvalueoFtheplaNassetsasat1stJaNuary 2633 2413

Expectedreturninplan’sassets 113 112

Contributionoftheemployerandtheemployees 382 316

Lossresultingfromtheactuarialassumption -53 -61

Paidbenefits -339 -147

FairvalueoFtheplaNassetsasat31stdecember 2736 2633

Contributionoftheemployerandtheemployeesexpectedfor2008 / 2007 394 328

realreturNoNtheplaNassets 131 115

actuarialassumptioNsusedtodetermiNeobligatioNs

Discountrate 5.40 % 4.40 %

Expectedrateofreturnonplan’sassets 4.25 % 4.30 %

Expectedsalarygrowthrate 3.50 % 3.50 %

Averageinflationrate 2.00 % 2.00 %


expected return on assets

It are the expected gains on investments, considering the anticipated forecasted return rate of the investments in the begin of the year. The expected return on assets for the concerned year will decrease the allowance costs only on the financed pension plans.

Historical overview of the key figures of the four last years :

2007 2006 2005 2004

peNsioNplaNwithdeFiNedbeNeFitobligatioN

Presentvalueofdefinedbenefitobligation 4 308 4 465 3 687 3 156

Fairvalueofplanassetsattheendoftheperiod 2 736 2 633 2 413 2 053

Deficitoffinancedplans 1 572 1 832 1 274 1 103

Experienceadjustmentson:

-planassets -98 -572

-planliabilities -53 -61 -35 -45

24.provisioNs

The components of provisions are as follows :

31-12-2007 31-12-2006

Provisionsformajormaintenanceandrepair 925 2 425

Provisionsrelatedtothesales 3 826 475

Provisionsforlitigations 1 500

Provisionsforevaluation&organisationoftheGroup 4 206

Otherprovisions 1 334 837

totalprovisioNs 11791 3737

provisioNsasat1stJaNuary 3737 2787

Allocations 10 331 2 261

Utilisations -753 -1 115

Disposals-Deconsolidation -1 524 -196

chaNgesFortheyear 8054 950

provisioNsasat31stdecember 11791 3737

Fromwhichshort-termprovisions 7 800 2 327

Allocation of this position by segment is as follows :

31-12-2007 31-12-2006

Development:

-Offices 8 007 1 208

-ResidentialDevelopment 1 165


-ProjectManagement 324



total 11791 3737


25.tradepayables1

This account is allocated by segment as follows :

31-12-2007 31-12-2006

Development:

-Offices 24 806 19 912






tradepayables 53862 38174

Schedule of the long-term trade payables :

Duein 2009 2010 2011 tOtal

8 000 3 000 2 625 13625

26.othercurreNtliabilities1

The components of this account are :

31-12-2007 31-12-2006

Personneldebts 2 048 1 661

Taxes(otherthanincometaxes)andVATpayable 1 151 15 849

Accruedchargesanddeferredincome 880 2 168

Operatingsubsidies 2 546 1 764

Other2 15 347 20 550

total 21972 41992

and are related to the following segments :

Development:

-Offices 13 785 30 684






othercurreNtliabilities 21972 41992

1. The Board of Directors believes the book value of this account reflects its fair value.2. The items recognised under this account are mainly related to the Development segment; it are mainly participating debts on projects in progress and

advance payments.


27.chaNgeiNworkiNgcapital

The change in working capital by kind is established as follows :

31-12-2007 31-12-2006

Inventories 1 709 -13 469

Tradereceivables 31 271 -369

Tradepayables 20 692 6 553

Othercurrentassetsandliabilities -20 618 8 668

chaNgeiNworkiNgcapital 33054 1383

Changes by segment are described under note 1 (financial information by segment).

28.disposaloFpartipatiNgiNterests

The disposal of participating interests relate to the companies Crown Avenue (project Crown Avenue in Brus-sels (Ixelles)), Immo Gaucheret (project Ellipse Building in Brussels (Schaerbeek)) and Soprima (project WestSide Village in Luxembourg).

29.chaNgeiNborrowiNgs

31-12-2007 31-12-2006

Newcontractedborrowings 29 577 83 512

Repaidloans -80 296 -77 679

NetoFtheyear -50719 5833

30.paiddivideNds

31-12-2007

Grossdividend(2.00EURpershare)relatedto2006 -8 244

Grossinterimdividend(7.20EURpershare)relatedto2007 -29 678

paiddivideNds -37922

31.cashFlowFromdiscoNtiNuedoperatioNs

This account relate to the Campona Shopping Center in Budapest, of which the property company Campona ‘99 Kft has been sold in November 2007.

31-12-2007 31-12-2006

Cashflowfromoperatingactivities 48 176 2 249

Cashflowfrominvestingactivities 31 163 -1 460

Cashflowfromfinancingactivities -1 654 -1 699

total 77685 -910


32.coNstructioNcoNtracts

Contract income and charges are recognised according to the stage of completion of the contract based on the cost method (comparison between expenses already accrued for work performed and total estimated contract expenses) excluding the costs that do not reflect the work performed (land costs, goodwill allocated to the land, installation costs, etc.).

31-12-2007 31-12-2006

Contractincomerecognisedunderincomefortheyear 17 173 62 812

Forongoingcontractsatreportingdate:

-Totalaccumulatedamountofrecognisedaccruedcostsandincome 2 922 119 029

-Advancesreceived -2 824 -116 257

-Netamountrecordedundertradereceivables 294 2 855

-Netamountrecordedundertradepayables -196 -83

33.maiNcoNtiNgeNtassetsaNdliabilities

31-12-2007 31-12-2006

GuaranteesfromthirdpartiesonbehalfoftheGroupwithrespectto:

-inventories 36 003 30 520

-constructioncontracts 12 030 114 862

-otherassets 232 232

totalguaraNteesFromthirdpartiesoNbehalFoFthegroup 48265 145614

Theseguaranteesconsistof:

-guarantees“Realestatetrader” 13 286 8 454

-guarantees“LawBreyne” 9 363 10 036

-guarantees“Goodendofexecution” 23 028 9 878

-guarantees“Refundofadvancepayments” 114 862

-guarantees“Other” 2 588 2 384

total 48265 145614

Mortgagepower-Amountofinscription 85 000 90 720

BookvalueofGroup’sassetspledgedfordebtsecuritiesrelatedto:

-participatinginterestsheldbytheGroup 28 941 54 533

-propertyandinventoryasawhole 153 441 288 470

-receivables 8 296

bookvalueoFpledgedgroup’sassets 182382 351299

Amountofdebtsguaranteedbyabovesecurities

-long-termdebts 28 982 97 501

-short-termdebts 89 129 118 373

total 118111 215874

Commitmentsfortheacquisitionofinventories 12 375 26 400

Commitmentsforthedisposalofinventories pm 1 358

Thecommitmentsfromwhichthevalueofacquisitionordisposal cannotbedefined,becausedependingfromfutureevents (permittoobtain,numberofm2toconstruct…),arenotincluded.


No provision has been recorded for the other litigations that mainly concern :

problems of decennial guarantee for which the Group has recourse on the contractor who is generally covered by an insurance of “decennial liability coverage” for this purpose,

pure administrative recourses concerning planning and environmental permits introduced by third parties at the State Council without any financial consequence for the Group.

34.iNFormatioNoNrelatedparties

companies consolidated and accounted for by the equity method

The list of subsidiaries, joint ventures and associates is included under note 37.

The transactions between the Compagnie Immobilière de Belgique, subsidiaries and joint ventures are elimi-nated in consolidation. The relationships with associates consist mainly of loans or advances, whose amounts are recorded in the balance sheet in the following accounts :

31-12-2007 31-12-2006

Othercurrentassets 1 130 1 051

Othercurrentliabilities 71 314

relationships with shareholders

31-12-2007 31-12-2006

maiNshareholders:

JEREuropeFundIII11S.àr.l. 30.53 % -

Fidean.v.andKBCAssurances 5.71 % 5.18 %

Suez-Tractebel - 30.53 %

EurodevHoldingCorporation,Luxembourg - 2.79 %

Variousregisteredshareholders 0.01 % 0.20 %

Other 63.75 % 61.30 %

Numberofrepresentativecapitalshares 4 121 934 4 121 934

relationships with senior executives

31-12-2007 31-12-2006

Remunerationamountsallocatedtoseniorexecutivesduringtheyear 1 632 1 512

transactions with other related parties 31-12-2007 31-12-2006

Theserelationsmainlyconsistoffeesrecordedunder otheroperatingexpenses 3 223 1 250


35.eveNtssubsequeNttoreportiNgdate

No significant event that may change the financial statements occured from the reporting date on 31st December 2007 up to 19th March 2008 when the financial statements were closed by the Board of Directors.

36.JoiNtveNtures

The companies jointly controlled are listed under note 37.

The participating interests of the Group in these companies are reported using the proportionate consolidation method grouping the accounts line by line.

The share of the joint ventures in the consolidated financial statements are detailed as follows :

31-12-2007 31-12-2006

Totalnon-currentassets 110 751

Totalcurrentassets 83 371 133 272

Totalnon-currentliabilities 27 856 1 734

Totalcurrentliabilities 75 024 131 170

Totalincome 20 126 68 051

Totalcharges 18 021 66 323

37.subsidiaries,JoiNtveNturesaNdassociates

Companies forming part of the Group as at 31st December 2007 :

subsidiaries

Name cOMpany REgistEREd % nuMbER OfficE intEREst1

CompagnieImmobilièredeLotissements(Lotinvest) 0451 565 088 Brussels 100.00

CompagnieImmobilièredeParticipationsFinancières(CIPAF) 0454 107 082 Brussels 100.00

CompagnieImmobilièredeWallonie(CIW) 0401 541 990 Flémalle 100.00

CompagnieImmobilièreLuxembourgeoise - Luxembourg 100.00

Demetex 0435 431 218 Flémalle 100.00

EntrepriseetGestionImmobilières(Egimo) 0403 360 741 Brussels 100.00

EspaceNivelles 0472 279 241 Brussels 100.00

FoncièreJennifer 0464 582 884 Brussels 100.00

Harmonia 0444 218 131 Brussels 99.60

ImmobiliënVennootschapvanVlaanderen(Investimmo) 0403 342 826 Brussels 100.00

ImmobilièreDeka 0417 100 196 Brussels 100.00

InternationalFinance&RealEstate(IFR) - Luxembourg 100.00

LesCourses 0442 973 165 Brussels 100.00

LesJardinsduNord 0444 857 737 Brussels 76.00

Progex 0462 629 325 Brussels 100.00

ProjectontwikkelingsmaatschappijImmo 0443 551 997 Brussels 100.00

Reforme 0402 973 335 Flémalle 100.00

SociétéFinancièredeParticipationsIndustrielles(Sofipari) 0449 032 596 Brussels 100.00

1. The % interest corresponds with the voting rights.


joint ventures Name cOMpany REgistEREd % nuMbER OfficE intEREst1

BellaVita 0890 019 738 Brussels 50.00

EspaceTrianon 0450 883 417 Embourg 50.00

FoncièreduParc 0433 168 544 Brussels 50.00

IlotEcluse 0441 544 592 Gilly 50.00

IntergénérationneldeWaterloo 0890 182 460 Brussels 50.00

Lex2000 0403 364 996 Brussels 50.00

Omega8-10 0892 725 345 Brussels 50.00

RACInvestmentCorp.(RACICorp) 0479 128 827 Antwerp 25.00

SociétéEspaceLéopold 0435 890 977 Brussels 50.00

UniversalisPark 0891 775 438 Brussels 50.00

Veldimmo 0430 622 986 Brussels 50.00

Vilpro 0437 858 295 Brussels 50.00

WestSide - Luxembourg 50.00

associates Name cOMpany REgistEREd % nuMbER OfficE intEREst1

Brownfields 0475 562 591 Grimbergen 42.00

EspaceMidi 0402 594 342 Brussels 20.00

Esplanade64 0888 411 419 Brussels 25.00

ImmobilièrePuvrez 0447 825 739 Brussels 19.97

InfrastructuresetDéveloppementsImmobiliers(IDIM) 0432 248 925 Brussels 37.47

LaMeute2 0474 581 408 Brussels 10.24

PalmettoAssociatesInc.underliquidation - Delaware 100.00

PromotionLéopold 0439 904 896 Brussels 35.50

1. The % interest corresponds with the voting rights.2. The accounting for by the equity method of the company La Meute is justified by the significant influence of Compagnie Immobiliere de Belgique on

them by the presence of 3 directors, representing Compagnie Immobiliere de Belgique, at the board of directors of the company La Meute.


changes in 2007 Name REgistEREd % OfficE intEREst1

iNcomiNgcompaNies

BellaVita Brussels 50.00

IntergénérationneldeWaterloo Brussels 50.00

Omega8-10 Brussels 50.00

UniversalisPark Brussels 50.00

WestSide Luxembourg 50.00

Esplanade64 Brussels 25.00

outgoiNgcompaNies

Campona‘99Kft Budapest 100.00

ImmoGaucheret Brussels 50.00

CrownAvenue Brussels 50.00

Soprima Luxembourg 50.00

other changes

Sienn Center - 100 % holding - Liquidation closed.

Immobilière Drève du Garde - 100 % holding - Merged by absorption by Lotinvest.

1. The % interest corresponds with the voting rights


statutoryauditor’sreporttotheshareholders’meetiNgoNthecoNsolidatedFiNaNcialstatemeNtsFortheyeareNded31december2007To the shareholders

As required by law and the company’s articles of association, we are pleased to report to you on the audit assignment which you have entrusted to us. This report includes our opinion on the consolidated financial statements together with the required additional comment.

uNqualiFiedauditopiNioNoNthecoNsolidatedFiNaNcialstatemeNtsWe have audited the accompanying consolidated financial statements of COMPAGNIE IMMOBILIÈRE DE BELGIQUE SA (“the company”) and its subsidiaries (jointly “the group”), prepared in accordance with International Financial Report-ing Standards as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium. Those consolidated financial statements comprise the consolidated balance sheet as at 31 December 2007, the consoli-dated income statement, the consolidated statement of changes in equity and the consolidated cash flow statement for the year then ended, as well as the summary of significant accounting policies and other explanatory notes. The consolidated balance sheet shows total assets of 420,415 (000) EUR and the consolidated income statement shows a consolidated profit (group share) for the year then ended of 50,222 (000) EUR.

The financial statements of several significant entities included in the scope of consolidation have been audited by other auditors. Our opinion on the accompanying consolidated financial statements, insofar as it relates to the amounts con-tributed by those entities, is based upon the reports of those other auditors.

The board of directors of the company is responsible for the preparation of the consolidated financial statements. This responsibility includes among other things: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with legal requirements and auditing standards applicable in Belgium, as issued by the “Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

In accordance with these standards, we have performed procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we have considered internal control relevant to the group’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. We have assessed the basis of the accounting policies used, the reasonableness of accounting estimates made by the company and the presentation of the consolidated financial statements, taken as a whole. Finally, the board of directors and responsible officers of the company have replied to all our requests for explanations and information. We believe that the audit evidence we have obtained, together with the reports of other auditors on which we have relied, provides a reasonable basis for our opinion.

In our opinion, and based upon the reports of other auditors, the consolidated financial statements give a true and fair view of the group’s financial position as of 31 December 2007, and of its results and its cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the EU and with the legal and regulatory requirements applicable in Belgium.

additioNalcommeNtThe preparation and the assessment of the information that should be included in the directors’ report on the consoli-dated financial statements are the responsibility of the board of directors.

Our responsibility is to include in our report the following additional comment which does not change the scope of our audit opinion on the consolidated financial statements:

The directors’ report on the consolidated financial statements includes the information required by law and is in agree-ment with the consolidated financial statements. However, we are unable to express an opinion on the description of the principal risks and uncertainties confronting the group, or on the status, future evolution, or significant influence of certain factors on its future development. We can, nevertheless, confirm that the information given is not in obvious contradiction with any information obtained in the context of our appointment.

Diegem, 7 April 2008

The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d’Entreprises BV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Pierre-hugues Bonnefoy

statutory auditor’s rePort


ComPany aCCounts

JArdinS de Jette (brussels / Jette) - Assar

104 compAny AccountS

BalanCe sheet(in tHouSAnd eur)

assets Notes 31-12-2007 31-12-2006

Fixedassets 106451 179598

establishmeNtcosts 17 24

iNtaNgibleFixedassets 41 61

taNgibleFixedassets 155 800

Plant,machineryandequipment 29 32

Furnituresandvehicles 126 159

Othertangiblefixedassets 609

FiNaNcialFixedassets 106238 178713

Associates 90 357 159 376

-Participatinginterests 1 86 376 125 193

-Amountsreceivables 2 3 981 34 183

Othercompanieslinkedbyparticipatinginterests 15 188 18 644

-Participatinginterests 1 15 188 18 644

Otherfinancialfixedassets 693 693

-Shares 1 682 682

-Amountsreceivableandcashguarantees 11 11

curreNtassets 241862 217569

stocksaNdcoNtractsiNprogress 74317 131075

Stocks 3 74 317 131 075

amouNtsreceivablewithiNoNeyear 53139 71200

Tradedebtors 2 023 5 644

Otheramountsreceivable 4 51 116 65 556

shorttermiNvestmeNts 111468 12567

Otherinvestments 111 468 12 567

cashatbaNkaNdiNhaNd 2740 2117

deFerredchargesaNdaccruediNcome 198 610

totalassets 348313 397167


liabilities Notes 31-12-2007 31-12-2006

shareholders’equity 5 186329 179636

capital 100285 100285

Subscribedcapital 100 285 100 285

revaluatioNreserves 609

reserves 10075 10151

Legalreserve 10 028 10 028

Untaxedreserves 47 47

Reservesavailablefordistribution 76

accumulatedproFits 75969 68591

provisioNsaNddeFerredtaxes 8893 338

provisioNsForliabilitiesaNdcharges 6 8893 338

Otherliabilitiesandcharges 8 893 338

debts 153091 217193

amouNtspayableaFteroNeyear 2323 72951


-Creditinstitutions 2 323 72 951

amouNtspayablewithiNoNeyear 149683 142897

Currentportionofamountspayableafteroneyear 7 87 234 74 979

Financialdebts 7 625

-Creditinstitutions 625

Tradedebts 12 022 9 663

-Suppliers 12 022 9 663

Advancepaymentsreceivedoncontractsinprogress 4 4

Amountspayablefortaxes,remunerationandsocialsecurity 1 197 1 225

-Taxes 100 155

-Remunerationandsocialsecurity 1 097 1 070

Otherdebts 8 49 226 56 401

accruedchargesaNddeFerrediNcome 1085 1345

totalliabilities 348313 397167


Notes 31-12-2007 31-12-2006

operatiNgiNcome 6058 8837

Turnover 9 67 654 30 957

Variationinstocksoffinishedgoods,worksandcontractsinprogress (increase+,decrease-) -65 082 -23 996

Otheroperatingincome 3 486 1 876

operatiNgexpeNses 35634 12659

Rawmaterials,consumablesandgoodsforresale 4 509 864

-Purchases 23 046 69 979

-Variationinstocks(increase-,decrease+) -18 537 -69 115

Servicesandothergoods 14 979 7 237

Remunerations,socialsecuritycostsandpensions 2 846 2 576

Depreciationandimpairmentofestablishmentcosts, tangibleandintangiblefixedassets 89 190

Write-offsonstocks,contractsinprogressand tradedebtors(increase+,useanddecrease-) 10 3 137 552

Provisionsforliabilitiesandcharges(increase+,useanddecrease-) 11 7 860 -1 268

Otheroperatingcharges 2 214 2 508

operatiNgresult -29576 -3822

FiNaNcialiNcome 43779 7675

Incomefromfinancialfixedassets 39 729 5 516

Incomefromcurrentassets 3 941 2 115

Otherfinancialincome 109 44

FiNaNcialcharges 8371 7085

Interestandotherdebtcharges 7 187 6 711

Otherfinancialcharges 1 184 374

FiNaNcialresult 12 35408 590

curreNtproFitbeForetaxes 5832 -3232

extraordiNaryiNcome 76536 14489

Reversalofimpairmentoffinancialfixedassets 15 136 14 284

Gainondisposaloffixedassets 61 400 205

extraordiNarycharges 25603 989

Impairmentoffinancialfixedassets 25 480 910

Lossondisposaloffixedassets 123 79

extraordiNaryresult 13 50933 13500

proFitFortheyearbeForetaxes 56765 10268

iNcometaxes -76

Incometaxes -85

Adjustmentofincometaxesandreleaseoftaxprovisions 9

proFitFortheFiNaNcialyear 56765 10192

transfer to untaxed reserves -1

proFitFortheFiNaNcialyearavailableForappropriatioN 56765 10192

inCome statement(in tHouSAnd eur)


31-12-2007 31-12-2006

proFittobeappropriated 125356 76759

Profitforthefinancialyearavailableforappropriation 56 765 10 191

Profitcarriedforward 68 591 66 568

drawiNgsoNequity 76 76

Ontheavailablereserve 76 76

resulttobecarriedForward 75969 68591

Profittobecarriedforward 75 969 68 591

proFitavailableFordistributioN 49463 8244

Dividends 49 463 8 244

aPProPriation oF the results(in tHouSAnd eur)


Note1.FiNaNcialassets-participatiNgiNterestsiNassociates

The participating interests in associates amount to 102,246 KEUR compared to 144,519 KEUR at 31st December 2006, a decrease of 42,273 KEUR due to the following movements :

31-12-2007

Acquisitions/Increases 17 600

Disposals/Decreases -49 529

Writtenbackimpairmentlosses 15 136

Recordedimpairmentlosses -25 480

-42273

Note2.amouNtsreceivableFromassociates

The breakdown of this account per sector is as follows :

31-12-2007 31-12-2006

Development-Offices 3 981 15 540

Property 18 643

3981 34183

The decrease in this account of 30,202 KEUR is due to the following movements :

Newadvancesgranted 4 939

Repaymentofadvances -35 141

-30202

Note3.stocks

The inventories amount to 74,317 KEUR compared to 131,075 KEUR at 31st December 2006, a decrease of 56,758 KEUR.

The constituents of this increase are as follows :

31-12-2007

Acquisitions 18 539

Disposals -65 082

Transfers -7 170

Recordedimpairmentlosses -3 045

-56758

Note4.amouNtsreceivablewithiNoNeyear-otheramouNtsreceivable

The main constituents of this account are as follows :

31-12-2007 31-12-2006

Advancestosubsidiaries 47 675 60 985

Otheramountsreceivable 3 441 4 571

51116 65556

notes to the ComPany aCCounts(in tHouSAnd eur)


Note5.shareholders’equity

The shareholders’ equity amounts to 186,329 KEUR. The increase of 6,693 KEUR compared with the previous year results from the following movements :

31-12-2007

Resultoftheperiod 56 765

InterimdividendpaidinSeptember2007 -29 678

FinaldividendtobepaidinMay2008 -19 785

Decreaseoftherevaluationreserves -609

6693

Note6.provisioNsForliabilitiesaNdcharges

The components of provisions are as follows :

31-12-2007 31-12-2006

Provisionsrelatedtothesales 3 057 338

Otherprovisions 5 836

totalprovisioNs 8893 338

provisioNsasat1stJaNuary 338

Allocations(operatingresult) 8 198

Allocations(financialresult) 695

Utilisations -338

chaNgesFortheyear 8555

provisioNsasat31stdecember 8893

Note7.FiNaNcialdebts

The financial debts are as follows :

31-12-2007 31-12-2006

Long-termfinancialdebts 2 323 72 951

Short-termfinancialdebts 87 234 75 604


Financial debts evolve as follows :

loNg-termFiNaNcialdebtsasat1stJaNuary 72951

Contracteddebts 372

Repaiddebts -3 800

Debtstransferredtoshortterm -67 200

loNg-termFiNaNcialdebtsasat31stdecember 2323

short-termFiNaNcialdebtsasat1stJaNuary 75604

Contracteddebts 4 506

Repaiddebts -60 076

Debtstransferredfromlongterm 67 200

short-termFiNaNcialdebtsasat31stdecember 87234


Note8.amouNtspayablewithiNoNeyear-otherdebts

The main constituents of this account are as follows :

31-12-2007 31-12-2006

Advancesfromsubsidiaries 25 945 38 667

Variousotherdebts 3 496 9 490

Proposeddividends 19 785 8 244

49226 56401

Note9.turNover

The constituents of the turnover evolve as follows :

31-12-2007 31-12-2006

SalesDevelopment-Offices 54 735 10 335

SalesDevelopment-ResidentialDevelopment 11 738 19 347

Other 1 181 1 275

67654 30957

Note10.write-oFFsoNstocksaNdtradedebtors

Constituents of this account :

31-12-2007 31-12-2006

Write-offsonstocks 3 045 581

Write-offsontradedebtors 92 -29

3137 552

Note11.provisioNsForliabilitiesaNdcharges

Main components of provisions :

31-12-2007 31-12-2006

Provisionsrelatedtothesales 2 024 -1 268


totalprovisioNs 7860 -1268


Note12.FiNaNcialresult

The breakdown of financial result is as follows :

31-12-2007 31-12-2006

Grossdividendsfromparticipations 38 770 3 709

Interestonloans 959 1 807

Netinterestonadvancesto/fromsubsidiaries 1 872 1 181

Interestonlong-termdebt -5 852 -6 022

Provisionsrelatedtothesales -695

Otherincome/chargesfromcashmanagement 354 -85

35408 590

Note13.extraordiNaryresult

The breakdown of extraordinary result is as follows :

31-12-2007 31-12-2006

Capitalgainondisposalofparticipations1 61 277 117

Impairmentlossesofparticipations -10 344 13 374

Mergergoodwillandother 9

50933 13500

1. These gains mainly relate the disposals of participating interests in the companies Crown Avenue, Immo Gaucheret and Campona ‘99 Kft.


+cashiN,-cashout 2003 2004 2005 2006 2007 notes

cashFlow 33356 -1195 9089 -3708 78891 1

chaNgeiNworkiNgcapitalrequiremeNt

Stocksandcontractsinprogress -7 449 1 891 422 -45 108 53 713

Amountsreceivablewithinoneyear -6 611 -4 102 11 182 -14 482 17 969

Otherbalancesheetitems -8 659 -17 882 -10 915 16 036 -16 231

Mergerimpact -4 549

totalchaNgeiNworkiNgcapitalrequiremeNt -22719 -20093 -3860 -43554 55451 2

cashFlowFromoperatiNgactivities 10637 -21288 5229 -47262 134342

iNvestmeNts

Tangibleandintangiblefixedassets -326 -86 -170 -172 -27

Financialfixedassets–shares -2 269 -39 -2 197 -17 600 3

Financialfixedassets–amountsreceivable -2 897 -8 304 -953 -1 446 -3 981 4

totaliNvestmeNts -3223 -10659 -1162 -3815 -21608

disposals

Tangibleandintangiblefixedassets 7 135 10

Financialfixedassets–shares 12 402 1 118 5 666 1 648 49 529 3

Financialfixedassets–amountsreceivable 1 836 27 474 254 7 556 34 181 4

totaldisposals 21373 28592 5920 9214 83710

cashFlowFromiNvestiNgactivities 18150 17933 4758 5399 62102

FiNaNciNgactivities

Repaymentsofcapital -40 565

Newlong-termdebts 70 000 3 026 70 000 37 999 372

Repaymentoflong-termdebt -16 452 -85 000 -4 895 -54 945 -71 000 5

Paiddividends -6 183 -37 922 6

cashFlowFromFiNaNciNgactivities 12983 -81974 65105 -23129 -108550

chaNgeiNcashaNdcashequivaleNts 41770 -85329 75092 -64992 87894

cashaNdcashequivaleNtsatbegiNNiNgoFyear -27461 14309 -71020 4072 -60920

cashaNdcashequivaleNtsateNdoFyear 14309 -71020 4072 -60920 26974

Cash Flow statement(in tHouSAnd eur)


Note1.cashFlow

components of the cash flow : nEtREsult dEpREciatiOn pROvisiOns aMOunts tOtal fORthEyEaR chaRgEs WRittEnOff

31-12-2007 56765 89 8555 13482 78891

31-12-2006 10 192 190 -1 268 -12 822 -3 708

Note2.chaNgeiNworkiNgcapitalrequiremeNt

The change in working capital by kind is established as follows :

Stocks 53 713

NetChangeinadvancesto/fromsubsidiaries 588

Othermovements 1 150

chaNgeiNworkiNgcapitalrequiremeNt 55451

Note3.iNvestmeNts/disposals-FiNaNcialassetsshares

The investments relate to the subsidiaries Bella Vita, Omega 8-10, RAC Investment Corp, Universalis Park and Esplanade 64.

The disposals mainly relate to the disposal of the subsidiaries Campona ‘99 Kft, Crown Avenue and Immo Gaucheret and the repayment of the capital of Egimo.

Note4.iNvestmeNts/disposals-FiNaNcialassetsamouNtsreceivable

The net movement of these accounts, 30,202 KEUR, refer to the followings sectors :

Development-Offices 11 559

Property 18 643

30202

Note5.repaymeNtsloNg-termdebts

Repaymentsduringtheyear -3 800

Transfertothe“Amountspayablewithinoneyear”duein2008 -67 200

-71000

Note6.paiddivideNds

Grossdividend(2.00EURpershare)relatedto2006 -8 244

Intermediategrossdividend(7.20EURpershare)relatedto2007 -29 678

-37922

notes to the Cash Flow statement(in tHouSAnd eur)


statemeNtoFestablishmeNtcosts

Netbookvalueatendofpreviousyear 24

Movementsduringtheyear:

-Depreciationcharges -7

NetbookvalueatyeareNd 17

statemeNtoFiNtaNgibleassets cOncEssiOns, patEnts, licEncEsEtc.

acquisitioNcosts

ateNdoFpreviousyear 577


-Acquisitionsincludingcapitalisedproduction 7

-Salesanddisposals -27

Totalmovementsduringtheyear -20

atyeareNd 557

depreciatioNsaNdimpairmeNts



-Recorded 27

-Cancelledafterdisposalsandretirements -27

Totalmovementsduringtheyear

atyeareNd 516

Netbookvalue


atyeareNd 41

suPPlementary notes to the ComPany aCCounts(in tHouSAnd eur)


statemeNtoFtaNgibleassets plant, fuRnituRE OthER MachinERy and tangiblE andEquipMEnt vEhiclEs fixEdassEts

acquisitioNcosts

ateNdoFpreviousyear 51 1297 2466


-Acquisitionsincludingcapitalisedproduction 1 22

-Salesanddisposals -27 -2 232

Totalmovementsduringtheyear 1 -5 -2 232

atyeareNd 52 1292 234

capitalgaiNs



-Cancelled -761

Totalmovementsduringtheyear -761

atyeareNd

depreciatioNsaNdimpairmeNts



-Recorded 5 50

-Cancelledafterdisposalsandretirements -23 -2 384

Totalmovementsduringtheyear 5 27 -2 384


Netbookvalue


atyeareNd 29 126


statemeNtoFFiNaNcialassets subsidiaRiEs assOciatEs OthER cOMpaniEs

participatiNgiNterestsaNdshares

acquisitioNcosts


Movementsduringtheyear

-Acquisitions 16 344 30

-Salesanddisposals -48 301

Totalmovementsduringtheyear -31 957 30

atyeareNd 129062 19118 683

impairmeNts


-Recorded 21 994 3 486

-Writtenbackbecauseinexcess -15 136

Totalmovementsduringtheyear 6 858 3 486


NoNcalledamouNts


Totalmovementsduringtheyear

atyeareNd 1722

Netbookvalue


atyeareNd 86376 15188 682

amouNtsreceivable

NetbookvalueateNdoFpreviousyear 34183 11

Movementsduringtheyear

-Additions 4 939

-Repayments -35 141

Totalmovementsduringtheyear -30 202

NetbookvalueatyeareNd 3981 11


participatiNgiNterestsaNdotherrightsheldiNothercompaNies

shaREshEld infORMatiOn fROMMOstREcEnt availablE annualaccOunts

cOMpanynaME cOMpany nuMbER diREctly by annual cuRREncy Equity nEtandhEadquaRtERs nuMbER subsidiaRiEs accOunts REsult (%) (%) datEd

BellaVitaAvenueJ.Dubrucq175Box1,1080Brussels

0890 019 738 2 284 49.91 % 0.09 % - - - -

CompagnieImmobilièredeLotissementsAvenueJ.Dubrucq175Box1,1080Brussels

0451 565 088 699 999 99.99 % 0.01 % 31-12-2006 eur 5 590 2 878

CompagnieImmobilièredeParticipationsFinancièresAvenueJ.Dubrucq175Box1,1080Brussels

0454 107 082 250 111 99.99 % 0.01 % 31-12-2006 eur 1 986 218

CompagnieImmobilièredeWallonieRuedesMoissons10,4400Flémalle

0401 541 990 25 461 99.99 % 0.01 % 31-12-2006 eur 6 819 -286

EGLBBeteiligungsGmbHFasanenstrasse63,10719Berlin,Germany

- 4 700 5.22 % 9.22 % 31-12-2006 eur 135 -8

EntrepriseetGestionImmobilièresAvenueJ.Dubrucq175Box1,1080Brussels

0403 360 741 95 999 99.99 % 0.01 % 31-12-2006 eur 6 013 7 895

EspaceMidiAvenuedesCommunautés100,1200Woluwe-Saint-Lambert

0402 594 342 6 304 20.00 % - 31-12-2006 eur 12 237 320

EspaceNivellesAvenueJ.Dubrucq175Box1,1080Brussels

0472 279 241 10 1.05 % 98.95 % 31-12-2006 eur 950 9

Esplanade64RueGodecharle15-17,1080Brussels

0888 411 419 300 5.00 % 40.00 % - - - -

FoncièreduParcAvenueBrugmann27,1060Brussels

0433 168 544 329 385 50.00 % - 31-12-2006 eur 5 418 209

FoncièreJenniferAvenueJ.Dubrucq175Box1,1080Brussels

0464 582 884 103 99.99 % 0.01 % 31-12-2006 eur 2 525 -6

HarmoniaAvenueJ.Dubrucq175Box1,1080Brussels

0444 218 131 24 900 99.60 % - 31-12-2006 eur 478 -85

ImmobiliënVennootschapvanVlaanderenAvenueJ.Dubrucq177,1080Brussels

0403 342 826 1 262 591 99.99 % - 31-12-2006 eur 23 552 823

ImmobilièreDekaAvenueJ.Dubrucq175,1080Brussels

0417 100 196 130 391 99.99 % 0.01 % 31-12-2006 eur 4 383 -131

ImmobilièrePuvrezAvenuedesCommunautés100,1200Woluwe-Saint-Lambert

0447 825 739 132 19.97 % - 31-12-2006 eur 621 315


participatiNgiNterestsaNdotherrightsheldiNothercompaNies(coNtiNuatioN)

shaREshEld infORMatiOn fROMMOstREcEnt availablE annualaccOunts

cOMpanynaME cOMpany nuMbER diREctly by annual cuRREncy Equity nEtandhEadquaRtERs nuMbER subsidiaRiEs accOunts REsult (%) (%) datEd

InfrastructuresetDéveloppementsImmobiliersAvenuedeTervueren72,1040Brussels

0432 248 925 1 424 37.47 % - 31-12-2006 eur 10 111 15

InternationalFinance&RealEstateRueJean-PierreBrasseur6,1258LuxembourgGrandDuchyofLuxembourg

- 2 499 99.99 % 0.01 % 31-12-2006 eur 196 12

LaMeuteAvenueReineAstrid92,1310LaHulpe

0474 581 408 253 11.50 % - 31-12-2006 eur 1 948 -58

LesCoursesAvenueJ.Dubrucq175Box1,1080Brussels

0442 973 165 100 849 99.99 % 0.01 % 31-12-2006 eur 2 768 1 506

LesJardinsduNordAvenueJ.Dubrucq175Box1,1080Brussels

0444 857 737 228 76.00 % - 31-12-2006 eur 125 225

Lex2000BoulevardPachéco44,1000Brussels

0403 364 996 97 579 50.00 % - 31-12-2006 eur 14 875 48 998

Omega8-10AvenueJ.Dubrucq175Box1,1080Brussels

0892 725 345 4 230 50.00 % - - - - -

PalmettoAssociatesInc.PrenticeHall,2711CentervilleRoadWilmington,Delaware,USA

- 16 030 100.00 % - 14-02-2007 uSd 1 990 -3

ProgexAvenueJ.Dubrucq175Box1,1080Brussels

0462 629 325 34 113 99.99 % 0.01 % 31-12-2006 eur 583 23

PromotionLéopoldRueGodecharle15-17,1050Brussels

0439 904 896 382 800 33.00 % 5.00 % 31-12-2006 eur 30 521 4 131

RACInvestmentCorp.VanEycklei1Box6,2018Antwerp

0479 128 827 25 25.00 % - 31-12-2006 eur 5 280 -973

SociétéEspaceLéopoldRueGodecharle15-17,1050Brussels

0435 890 977 10 000 50.00 % - 31-12-2006 eur 8 037 455

SociétéFinancièredeParticipationsIndustriellesAvenueJ.Dubrucq175,1080Brussels

0449 032 596 41 974 99.99 % 0.01 % 31-12-2006 eur 10 353 1 061

UniversalisParkAvenueJ.Dubrucq175Box1,1080Brussels

0891 775 438 50 50.00 % - - - - -

VeldimmoChausséedelaHulpe130Box2,1000Brussels

0430 622 986 1 300 50.00 % - 31-12-2006 eur 226 -102


shorttermiNvestmeNts:otheriNvestmeNts REpORtyEaR pREviOus yEaR

termdepositsheldwithcreditiNstitutioNs 111468 12567

Witharemainingperiodtorunoraperiodofnotice:

-Oflessthanorequaltoonemonth 111 468 12 567

deFerredchargesaNdaccruediNcome REpORtyEaR

breakdowNoFtheaccouNt490/1iF itrepreseNtsasigNiFicaNtamouNt

Deferredcharges 169

Accruedincome 29

statemeNtoFcapital aMOunts nuMbER OfshaREs

sharecapital

issuedcapital

Atendofpreviousyear 100 285

Atyearend 100 285

breakdowNoFthecapital

Categoriesofshares

-Ordinaryshareswithoutparvalue 100 285 4 121 934

Registeredsharesandbearershares

-Registered 1 402 038

-Bearer 2 719 896

authorizedNoNsubscribedcapital 50000

shareholdiNgstructure

NumberoFrespectivesharesissuedbythecompaNy 4121934

kNowNshareholders

-JEREuropeFundIIIS.àr.l. 1 258 565

-FideaandKBCAssurances 235 444

-Variousregisteredshareholders 210

totaloFkNowNshareholders 1494219

provisioNsForotherliabilitiesaNdcharges REpORtyEaR

breakdowNoFtheaccouNt163/5oFliabilitiesiF itrepreseNtsasigNiFicaNtamouNt

Provisionsforgivenguarantees 1 696

Provisionsforlitigations 255

Provisionsforcommitmentsandcontractualobligations 720



statemeNtoFamouNtspayable

aMOuntspayablE aMOuntspayablE breakdowNoFamouNtspayableaFteroNeyear, WithinOnEyEaR bEtWEEn accordiNgtotheirresidualterm OnEandfivEyEaRs

FiNaNcialdebts 87234 2323

Unsubordinateddebentures 34

Creditinstitutions 87 200 2 323

total 87234 2323

dEbts(ORpaRtOfdEbts)guaRantEEd byREalsuREtiEsgivEn ORiRREvOcablypROMisEd amouNtspayableguaraNteed bythEcOMpanyOnitsOWnassEts

FiNaNcialdebts 89523

Creditinstitutions 89 523

total 89523

amouNtspayableFortaxes,remuNeratioNsaNdsocialsecurity REpORtyEaR

Taxes

-Non-expiredtaxespayable 100

Remunerationsandsocialsecurity

-Otheramountsrelatingtoremunerationsandsocialsecurity 1 097

accruedchargesaNddeFerrediNcome REpORtyEaR

Chargestobeaccrued 355

Deferredincome 111

Conversiondifferences 620


operatiNgresults REpORt pREviOus yEaR yEaR

operatiNgiNcome

turNover

Allocationbysectorofactivity:

-RealEstatedevelopment 66 117 29 684

-Servicefees 899 647

-Rent 638 626

NumberoFpersoNNeloNthepayroll

Totalnumberattheclosingdate 23 27

Averagenumberofpersonnelinfull-timeequivalents 24.2 27.6

Numberofactualworkinghours 44 126 52 058

persoNNelcharges

Remunerations,salariesanddirectbenefits 1 911 1 773

Employer’scontributionsforsocialsecurity 584 515

Employer’spremiumsforextra-statutoryinsurance 268 239

Otherpersonnelcharges 79 44

Pensions 4 5

provisioNsForpeNsioNs

Allocations(useandrelease) 479

write-oFFs

Stocksandcontractsinprogress

-Recorded 3 077 625

-Released -44

Tradedebtors

-Recorded 60 20

-Released -49

provisioNsForliabilitiesaNdcharges

Newprovisions 8 134 18

Useandrelease -274 -1 286

otheroperatiNgcharges

Taxesrelatedtooperations 1 800 1 922

Other 414 586

temporarypersoNNelaNdpersoNsplacedatthe disposaloFthecompaNy

Totalnumberattheclosingdate 1 1

Averagenumberofpersonsinfull-timeequivalents 2.0 0.3

Numberofhoursactuallyworked 3 559 569

Chargestothecompany 146 12


FiNaNcialresults REpORt pREviOus yEaR yEaR

otherFiNaNcialiNcome

Currencyexchangeandconversiondifferences 36 2

Other 72 93

otherFiNaNcialcharges

Exchangedifferences 3 1

Othercommissionsandbankcharges 638 601

iNcometaxes REpORtyEaR

iNcometaxesForthecurreNtyear

Taxandwithholdingtaxesdueorpaid 32

Excedentoftaxpaymentsoractivatedwitholdingtaxes -32

maiNreasoNsFordiscrepaNciesbetweeNtheproFitbeForetaxesaNdtheestimatedtaxableproFit

Nondeductibleexpenses,taxableprovisionsandchangesinreserves 44 364

Writebackofimpairmentlossesandmore-valuesonfinancialassets -74 282

Incomealreadytaxed -27 469

Detaxationoftaxedprovisionsandexcessdepreciation 622

sourcesoFdeFerredtaxes

deFerredtaxassets 24534

Accumulatedtaxlossesdeductiblefromlatertaxableprofits 3 115

Incomealreadytaxednonallocatedandtocarryover 10 757

Notionalinterestdeduction 1 666

Excessdepreciationtodetax 86

Taxedprovisionstodetax 7 388

Revaluationmore-valuesandtaxedimpairmentlosses 1 522

valueaddedtaxesaNdtaxesborNebythirdparties REpORt pREviOus yEaR yEaR

vatchargedduriNgtheyear

Tothecompany(deductible) 10 418 874

Bythecompany 10 817 797

amouNtsretaiNedoNbehalFoFthirdpartiesFor:

Withholdingtaxesonpayroll 832 780

Withholdingtaxesoninvestmentincome 5 906 1 012


rightsaNdcommitmeNtsNotreFlectediNthebalaNcesheet

persoNalguaraNteesgiveNorirrevocablypromisedbythecompaNy assecurityForthedebtsorcommitmeNtsoFthirdparties 30658

Maximumamountuptowhichothercommitmentsbythirdparties areguaranteedbythecompany 30 658

realguaraNteesgiveNorirrevocablypromisedbythecompaNy assEcuRityfORthEdEbtsOR oNitsowNassets cOMMitMEntsOfthEcOMpany

Mortgages:

-Bookvalueofmortgagedrealproperties 43 403

-Amountofmortgage 35

Pledgesonotherassets:

-Bookvalueofpledgedassets 25 036

Importantcommitmentsacquiringassets:

-Commitmentacquiringrealestateproperties 3 900

Importantlitigationsandothersignificantcommitments:

-Third-partyprovidersofguaranteesonbehalfofthecompany 40 264

supplemeNtarypeNsioNscheme

Agroupinsurancepolicyhasbeentakenoutwithaninsurancecompanywiththeobjectofprovidingthefollowingbenefits, inadditiontostatutorypensionrights:

-oldageinsurance,toprovideanextrapensionattheageof65,

-insuranceincaseofdeathbeforereachingtheageofretirement.

Thisgroupinsuranceispaidforbyobligatorycontributionsfromtheinsured,andbyacontributionfromtheCompany.


relatioNswithassociatesaNdcompaNiesliNkedbyparticipatiNgiNterests assOciatEs cOMpaniEsWith paRticipatingintEREsts REpORt pREviOus REpORt pREviOus yEaR yEaR yEaR yEaR

FiNaNcialFixedassets 90357 159736 15188 18644

Participations 86 376 125 193 15 188 18 644

Amountsreceivable:subordinated 15 540

Amountsreceivable:other 3 981 18 643

amouNtsreceivable 46665 60458 1035 1097

Withinoneyear 46 665 60 458 1 035 1 097

amouNtspayable 25874 37813 71 868

Withinoneyear 25 874 37 813 71 868

persoNalaNdrealguaraNteesgiveNorirrevocably promisedbythecompaNyassecurityForthedebts orcommitmeNtsoFassociates 30658 54077

persoNalaNdrealguaraNteesgiveNorirrevocably promisedbythecompaNyassecurityForthedebts orcommitmeNtsoFthecompaNy 13320 18807

FiNaNcialresults

Incomefromfinancialfixedassets 37 679 5 406

Incomefromcurrentassets 3 050 1 731

Debtcharges 1 211 566

FiNaNcialrelatioNswith REpORtyEaR

directorsaNdmaNagers

Directandindirectremunerationsandpensions,includedintheincomestatement,totheextent thatthisdisclosuredoesnotprincipallyorexclusivelyrelatetoasingleidentifiableindividual

-TotheDirectorsandManagers 160

-TotheformerDirectorsandManagers 259

theauditoraNdhisrelatedparties

Statutoryauditfees 34

Feesforextraordinarymissionsperformedbytheauditor 18

-Otherauditmissions 6

-Othermissionsoutsidetheauditmission 12

Feesforextraordinarymissionsperformedbypeopleinrelationshipwiththeauditor 89

-Taxconsulting 74

-Othermissionsoutsidetheauditmission 15

declaratioNcoNcerNiNgthecoNsolidatedaccouNts

The company draws up and publishes consolidated accounts and a consolidated directors’ report in accordance with the provisions of the Royal Decree of 6th March 1990 on the consolidated accounts of companies.


Number under which the company is registered with the National Office of Social Security (ONSS number) : 010-0102636-66

Numbers of the joint industrial committees to which the company is subject : 100.00 - 218.00

statemeNtoFpersoNsemployed full paRt tOtal(t)ORtOtalin tiME tiME full-tiME EquivalEnts(ftE)

REpORt REpORt REpORt pREviOus yEaR yEaR yEaR yEaR

persoNNeloNthepayroll

duriNgtheFiNaNcialyearaNdduriNgtheprevious FiNaNcialyear

Averagenumberofemployees 23.8 0.7 24.2 (Fte) 27.6 (Fte)

Numberofhoursactuallyworked 43 103 1 023 44 126 (t) 52 058 (t)

Personnelcosts(inthousandEUR) 2 776 66 2 841 (t) 2 572 (t)

Amountofbenefitsinadditiontowages (inthousandEUR) 24 (t) 27 (t)

asattheclosiNgdateoFtheFiNaNcialyear

Numberofpersonnelonthepayroll 23 23.0

Breakdownbytypeofemploymentcontract

-Contractofunlimitedduration 23 23.0

Breakdownbysex

-Men 15 15.0

-Women 8 8.0

Breakdownbyprofessionalcategory

-Employees 23 23.0

tEMpORaRy temporarypersoNNelaNdpersoNsplacedatthedisposaloFthecompaNy pERsOnnEl

duriNgthecurreNtyear

Averagenumberofpeopleemployed 2.0

Numberofhoursactuallyworked 3 559

Chargestothecompany(inthousandEUR) 146

soCial rePort


listoFpersoNNelmovemeNtsduriNgtheFiNaNcialyear full paRt tOtalin tiME tiME full-tiME EquivalEnts

JoiNiNg

NumberoFemployedpersoNsrecordedoNthepayroll duriNgtheFiNaNcialyear 3 3.0

breakdowNbytypeoFemploymeNtcoNtract

Contractoflimitedduration 3 3.0

breakdowNbysexaNdleveloFeducatioN

Men:secondary 1 1.0

superiornon-university 1 1.0

Women:secondary 1 1.0

leaviNg

NumberoFemployeeswhosecoNtracteNdwasrecorded iNthepersoNNelregisterduriNgtheFiNaNcialyear 6 1 6.7

breakdowNbytypeoFemploymeNtcoNtract

Contractofunlimitedduration 3 1 3.7

Contractoflimitedduration 3 3.0

breakdowNbysexaNdleveloFeducatioN

Men:secondary 3 3.0

Women:secondary 3 1 3.7

breakdowNbyreasoNFortermiNatioNoFcoNtract

Pension 1 1.0

Earlyretirement 1 1.0

Dismissal 2 1 2.7

Otherreason 2 2.0


statemeNtcoNcerNiNgtheimplemeNtatioNoFmeasuresForstimulatiNgemploymeNtduriNgtheFiNaNcialyear nuMbEROfEMplOyEdpERsOnsinvOlvEd aMOuntOf thEfinancial MEasuREsstiMulatingEMplOyMEnt nuMbER infull-tiME bEnEfit EquivalEnts (inthOusand EuR)

measuresiNcludiNgaFiNaNcialiNceNtive

Structuralreductioninsocialsecuritycontributions 28 27.7 66

NumberoFemployeesaFFectedbyoNeormore measuresiNFavouroFemploymeNt

Totalforthefinancialyear 28 27.7

Totalforthepreviousfinancialyear 28 27.7

iNFormatioNoNvocatioNaltraiNiNgForemployedpersoNsduriNgtheFiNaNcialyear tOtalnuMbEROftRaininginitiativEs nuMbER nuMbER chaRgEstO atthEExpEnsEOfthEEMplOyER OfEMplOyEd OftRaining thEcOMpany pERsOns hOuRs (inthOusand invOlvEd EuR)

Men 6 90 5

Women 2 32 3


Summary of accounting principles in application of article 28 § 1 of the Royal Decree of 30th January 2001 and the Companies Code.

assets

establishmeNtcosts

The costs of issuing shares and convertible or non-convertible bonds are normally recorded as assets and written off over three years. The costs of converting convertible bonds are recorded as expenses for the financial year in which they are incurred.

taNgibleassets

Tangible assets are recorded as assets net of accumu-lated depreciation, at either their cost price or contri-bution value (value at which they were brought into the business), including ancillary costs and non-de-ductible VAT. In accordance with article 95, book II, of the Royal Decree of 30th January 2001, the acquisition cost of tangible assets may include interest charges relating to the capital borrowed to finance these assets, but only on condition that such interest relates to the period preceding the effective commissioning of the assets.

Depreciation is calculated by the straight line method, from the year when the asset is first recorded, at the rates allowed for tax purposes :

Buildings 3 % Building improvements 5 % Office furniture and equipment 10 % Computer equipment 33 % Vehicles 20 %

FiNaNcialassets

Each type of portfolio security included in financial assets is accounted for separately, aggregated by type or by lot according to acquisition date. They are recorded either at their individual purchase price or at their contribution value, after taking into account any amounts still not paid up and any write-offs made.

At the end of every financial year, each portfolio secu-rity included in financial assets is valued separately in order to reflect as accurately as possible the finan-cial position, profitability and future prospects of the company in which the shares are held.

The basic criterion for this individual valuation is the net assets of the company in question, with current profitability or at least the company’s prospect for profitability in the near future as a secondary consid-eration.

The method of valuation of foreign securities is as indicated above, but this is first carried out in the cur-

rency of the foreign company’s financial statements, before conversion into EUR. Such conversions are gen-erally made at the closing rate of exchange for bal-ance sheet items and at the average rate of exchange for income statement items.

Valuations also take account of exceptional events occurring before the balance sheet date but which become known to the company’s Board of Directors only after the completion of the annual accounts and before their adoption by the board.

If it appears that the book value of a security is greater than its estimated value and that the potential loss thus identified is of a lasting nature, an adjustment is made to the book value. It would be appropriate to review this adjustment if, subsequently, the individ-ual valuation were to indicate a lasting recovery.

amouNtsreceivableaFteroNeyear

Amounts receivable after one year are recorded at their nominal value and this value is adjusted, pro-vided that the depreciation is lasting.

As regards interest-free amounts receivable or those bearing abnormally low levels of interest, any related depreciation is accounted for in accordance with arti-cle 67 of the Royal Decree of 30th January 2001.

stocks

sites under development

Land and buildings intended for sale are recorded at their purchase price or contribution value, including, in addition to the purchase price, the ancillary costs, duties and taxes relating to them.

The infrastructure costs are recorded at their cost price.

Realisation of stocks is recorded at the time of sale, at the weighted average price of acquisitions as defined above.

property reserve

Land not included in sites under development is accounted for in the Property Reserve in accordance with the same valuation criteria described above for sites under development.

work and contracts in progress

Work in progress is valued at cost price, taking no account of indirect production costs.

Work in progress and services in progress carried out for third parties on the basis of an order are val-ued at cost price, taking no account of indirect costs. Profits are, in principle, recorded on the basis of the percentage of completion of the work, production or services, in accordance with the principles of pru-dence.

aCCounting PrinCiPles


In accordance with articles 71 and 72 of the Royal Decree of 30th January 2001, the cost of orders in progress may include the interest charges relat-ing to the capital borrowed to finance the orders, on condition that such interest relates to stocks or orders whose normal production or completion period exceeds one year and that it covers the nor-mal period of production.

On any contract for which the cost of the supplies and services – plus estimated amounts for those still to be supplied or rendered – exceeds the net sales price of such services at the end of the financial year, an adjustment in value is made at least equal to this difference. Adjustments in value may also be made to take account of technical, political and monetary problems known at the time of valuation.

acquisitioNsaNddisposalsoFproperties

The sales and the purchases of properties are recorded at the signature of the notarial act in so far as the eventual conditions precedents are lifted and a clause of deferred property transfer is foreseen in the com-promise under private signature. In case of absence of this clause, the recording will take place at the date of the compromise under private signature.

In case of application of the “Breyne” Law, the dispos-als and the acquisitions of properties are recorded at the date of convention without conditions precedents or at the date of the accomplishment of the conditions precedents foreseen in the convention. The disposal of the land is recorded for its totality while the sale of the construction is recorded according to the degree of completion of the works. This rule is applicable not-withstanding the clause of deferred property transfer eventually foreseen at the convention.

amouNtsreceivablewithiNoNeyear

The amounts receivable within one year are recorded at their nominal value.

Values are adjusted if the estimated value at the end of the financial year is lower than the book value.

shorttermiNvestmeNts

Investments are recorded as assets at their purchase price (ancillary costs excluded) or contribution value.

At the end of the financial year, they are valued at the lowest of the following values : purchase price, or value at which they are brought into the business, or quoted market price at the end of the financial year.

Unlisted securities are in principle maintained in the accounts at purchase price or value at which they were contributed to the business.

For securities denominated in foreign currencies, the rates of exchange used are those in force at the trans-action date for the purchase or acquisition price, and at the balance sheet date for the quoted market price.

The other investments are valued on the same basis as amounts receivable within one year. The foreign currency valuation rules are applied to them.

cashatbaNkaNdiNhaNd

The accounting principles for cash at bank and in hand are the same as those for amounts receivable within one year.

deFerredchargesaNdaccruediNcome

The expenses incurred during the financial year, but which are chargeable in whole or in part to a future financial year, are recorded under deferred charges and accrued income pro rata.

The income or fractions of income which will only be received during one or more subsequent financial years but which are revenues of the current financial year, are recorded at the amount of the proportion relating to the current financial year.

liabilities

uNtaxedreserves

This account includes realised capital gains and other profits which are not subject to taxation, providing they are retained by the company.

The gains involved are : realised capital gains on undeveloped land which are tax-free up to the revaluation coefficients authorised under the income tax code,

the excess part of realised, voluntary capital gains or those resulting from expropriation where the condi-tions for tax-exemption laid down by the income tax code are fulfilled. The realised capital gains which are taxed at the same rate of depreciation on the fixed assets acquired for re-investment are classified under this item after deduction of the deferred tax relating to them.

provisioNsaNddeFerredtaxes

provisions for liabilities and charges

At the close of each financial year, the Board of Direc-tors, acting with prudence, sincerity and in good faith, examines the provisions to be set aside to cover :

major repairs or major maintenance,

risks arising from the :

- completion of orders placed or received,

- advances made,

- technical guarantees after sale or delivery,

- current litigations.


deferred taxes

Deferred taxes relating to capital gains realised are initially valued at the normal tax rate, and reviewed by the Board of Directors in the light of the foresee-able tax position of the Company, readjusted where necessary on a case-by-case basis in accordance with the normal life of the goods acquired for reinvest-ment.

Provisions relating to previous financial years are reviewed regularly and included in the results if they have become excessive or redundant.

amouNtspayableaFteroNeyearaNdamouNtspayablewithiNtheyear

These debts are entered at their face value.

Article 77 of the Royal Decree of 30th January 2001 applies to amounts payable after one year.

accruedchargesaNddeFerrediNcome

The expenses or fractions of expenses relating to the current financial year, but which will only be paid during a future year, are recorded in accrued charges and deferred income at the amount relating to the financial year.

The income received during the financial year, but which is in whole or part revenue of a future financial year, is also recorded at the amount of the income for the future financial year.


statutoryauditor’sreportFortheyeareNded31december2007totheshareholders’meetiNgTo the shareholders

As required by law and the company’s articles of association, we are pleased to report to you on the audit assign-ment which you have entrusted to us. This report includes our opinion on the financial statements together with the required additional comments and information.

uNqualiFiedauditopiNioNoNtheFiNaNcialstatemeNtsWe have audited the financial statements of COMPAGNIE IMMOBILIERE DE BELGIQUE SA for the year ended 31 December 2007, prepared in accordance with the accounting principles applicable in Belgium, which show total assets of 348,313 (000) EUR and a profit for the year of 56,765 (000) EUR.

The board of directors of the company is responsible for the preparation of the financial statements. This respon-sibility includes among other things: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with legal requirements and auditing standards applicable in Belgium, as issued by the “Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material mis-statement.

In accordance with these standards, we have performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we have considered internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. We have assessed the basis of the accounting policies used, the reasonableness of accounting estimates made by the company and the presentation of the financial statements, taken as a whole. Finally, the board of directors and responsible officers of the company have replied to all our requests for explanations and informa-tion. We believe that the audit evidence we have obtained provides a reasonable basis for our opinion.

In our opinion, the financial statements as of 31 December 2007 give a true and fair view of the company’s assets, liabilities, financial position and results in accordance with the accounting principles applicable in Belgium.

additioNalcommeNtsaNdiNFormatioNThe preparation and the assessment of the information that should be included in the directors’ report and the company’s compliance with the requirements of the Companies Code and its articles of association are the responsibility of the board of directors.

Our responsibility is to include in our report the following additional comments and information which do not change the scope of our audit opinion on the financial statements:

The directors’ report includes the information required by law and is in agreement with the financial state-ments. However, we are unable to express an opinion on the description of the principal risks and uncertainties confronting the company, or on the status, future evolution, or significant influence of certain factors on its future development. We can, nevertheless, confirm that the information given is not in obvious contradiction with any information obtained in the context of our appointment.

Without prejudice to certain formal aspects of minor importance, the accounting records are maintained in accordance with the legal and regulatory requirements applicable in Belgium.

No transactions have been undertaken or decisions taken in violation of the company’s articles or the Compa-nies Code such as we would be obliged to report to you. The appropriation of the results proposed to the general meeting is in accordance with the requirements of the law and the company’s articles.

During the period, the company paid an interim dividend on which we have issued the report attached to the present report, as required by law.

Diegem, 7 April 2008

The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d’Entreprises BV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Pierre-hugues Bonnefoy

statutory auditor’s rePorts

132

auditreportoNthestatemeNtoFassetsaNdliabilitiesoN31stJuly2007totheboardoFdirectorsiNviewoFthepaymeNtoFaNiNterimdivideNd(FreetraNslatioN)

1.iNtroductioNIn accordance with to article 46 of the company’s by-laws, the Board of Directors proposes to pay an interim dividend on the results of the financial year.In accordance with article 618 of the Company Code, we have the honour to report to you on the statement of assets and liabilities for the period January 1, 2007 till July 31, 2007 showing total assets of 360.507 (000) EUR.This interim statement of assets and liabilities has been established under the responsibility of the Board of directors in order to examine whether the available profit, in accordance with article 618 below, is sufficient to pay an interim dividend of 30 000 (000) EUR.The text of article 618 is: « Les statuts peuvent donner au conseil d’administration le pouvoir de distribuer un acompte à imputer sur le dividende qui sera distribué sur les résultats de l’exercice. Cette distribution ne peut avoir lieu que par prélèvement sur le bénéfice de l’exercice en cours, le cas échéant réduit de la perte repor-tée ou majoré du bénéfice reporté, à l’exclusion de tout prélèvement sur des réserves constituées et en tenant compte des réserves à constituer en vertu d’une disposition légale ou statutaire.Elle ne peut en outre être effectuée que si, sur le vu d’un état, vérifié par le commissaire et résumant la situation active et passive, le conseil d’administration constate que le bénéfice calculé conformément à l’alinéa 2 est suffisant pour permettre la distribution d’un acompte.Le rapport de vérification du commissaire est annexé à son rapport annuel.La décision du conseil d’administration de distribuer un acompte ne peut être prise plus de deux mois après la date à laquelle a été arrêtée la situation active et passive.La distribution ne peut être décidée moins de six mois après la clôture de l’exercice précédent ni avant l’approbation des comptes annuels se rapportant à cet exercice.Lorsqu’un premier acompte a été distribué, la décision d’en distribuer un nouveau ne peut être prise que trois mois au moins après la décision de distribuer le premier.Lorsque les acomptes excèdent le montant du dividende arrêté ultérieurement par l’Assemblée Générale, ils sont, dans cette mesure, considérés comme un acompte à valoir sur le dividende suivant. »

2.reviewsperFormedOur examination of the statement of assets and liabilities as of July 31, 2007 was carried out in conformity with the recommendation of the Belgian Institute of Company Auditors applicable to limited review engagements. This review consisted primarily of the analy-sis of the financial information and the discussion thereof with the company’s management. Our review was therefore less extensive than a full-scope audit, the objective of which is to express an opinion on the financial statements. We also checked whether the by-laws provide the Board of Directors with the authority to pay an interim dividend.

3.remarksoNthestatemeNtoFtheassetsaNdliabilitiesThe interim statement of the assets and liabilities as of July 31, 2007 has been established under the responsibility of the Board of Directors in accordance with applicable accounting regulation and the company’s accounting principles and results from the accoun-ting records of C.I.B. SA. The accounting principles are consistent with the ones used in the previous financial year.The balance sheet as of December 31, 2006 is enclosed and compared with the statement of assets and liabilities. We have examined these annual accounts which have been approved by the General Meeting of shareholders of May 9, 2007.

4.eveNtsoccuriNgaFtertheiNterimclosiNgdateOn the date of this report and based on the discussions with the management, no event has occurred since July 31, 2007 that may have any material influence , closing date of the interim statement of assets and liabilities.

5.limitatioNoFproFitappropriatioNAccording to article 616 of the Companies Code, yearly at least one twentieth of the net profit must be allocated to reserves. This ends when the reserves amount to one tenth of the social capital.In accordance with article 617 of the Companies Code, no payment can be made if the net-assets would decrease below the higher of the called capital or the unpaid capital increased with all reserves that cannot be paid according to the law or company’s by-laws. By net assets we mean the total assets as shown on the balance sheet decreased with all provisions and debts. For distribution of the interim dividend, the capital and reserves should not include undepreciated formation and expansion expenses, nor, except for justified exceptional cases, the undepreciated research and development costs. According to article 618 of the Companies Code, an interim dividend can only be paid from the profit of the current financial year, if necessary decreased with the loss carried forward or increased with the profit carried forward, without transfer from legal reserves and taking into account the reserves that have to be built by virtue of legal or statutory regulation.

6.coNclusioNOur review did not reveal any facts or elements that could lead to significant changes in the interim statement of the assets and liabilities for the period of January 1, 2007 to July 31, 2007. The profit of the current financial year as mentioned in the interim statement as of July 31, 2007, increased with the profit carried forward, without transfer from legal or statutory reserves set up or to be set up, is higher than the amount of the proposed interim dividend.This report has been established for the exclusive use by the Board of Directors and the shareholders, within the scope of the payment of an interim dividend as mentioned above, and cannot be used for any other purpose. In accordance with article 618, it will have to be attached to the auditor’s report on the annual accounts as of December 31, 2007.

Diegem, 10th September 2007The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d’EntreprisesBV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Pierre-hugues Bonnefoy

Attachments : interim statement of the assets and liabilities as of 31st July 2007 and the company’s accounting principles.

COMPANy NAME

Compagnie Immobilière de Belgique or Immobiliën Vennootschap Van België (Euronext Brussels : listed under the name Immobel).

REGISTERED OffICE

Avenue J. Dubrucq 175 / Box 1 1080 Brussels - Belgium Register of Companies Brussels - VAT BE 0405.966.675

fORM Of THE COMPANy

Belgian registered joint stock company, constituted on 9th July 1863, authorised by the Royal Decree of 23rd July 1863.

TERM

Indefinite

CROSSING STATUTORy THRESHOLDS

(Art. 12 of the Articles of Association - extracts) Each person or legal entity acquiring company shares, […], and conferring voting rights, has to declare to the company and to the Banking, Finance and Insurance Commission the number of shares it possesses, when the voting rights pertaining to these shares reach a level of three per cent or more of the total of the exist-ing voting rights.

The same declaration must be made in the case of the acquisition of additional shares referred to in the first indent, where following this acquisition, the voting rights pertaining to the shares it possesses reach a level of five, ten, fifteen per cent, and thereafter at intervals of five points, of the total of the existing voting rights.

It must make the same declaration in the case of the disposal of shares where, following such disposal, its voting rights fall below one of the thresholds referred to in the 1st indent or the 2nd indent.

Where a person or a legal entity acquires or disposes of direct or indirect control, in law or in fact, of a company that owns at least three per cent of the total voting rights in the company, it must declare this to the Ban-king, Finance and Insurance Commission.

fINANCIAL SERvICES

- Fortis Banque - KBC Bank - ING Belgium - Banque Degroof

INvESTOR RELATIONS

Philippe Opsomer Phone : 32(0)2/422.54.43 Fax : 32(0)2/428.12.23 E-mail : [email protected]

fINANCIAL CALENDAR

Publication of annual accounts 2008 : 20 March 2008Ordinary General Meeting 2008 : 14 May 2008Publication of half-year results 2008 : 28 August 2008Publication of annual accounts 2008 : March 2009 Ordinary General Meeting 2009 : 13 May 2009

EDITORS IN CHIEf

Gaëtan Piret – Joëlle Micha Compagnie Immobilière de Belgique Avenue J. Dubrucq 175, Box 1, 1080 Brussels - Belgium Phone : 32(0)2/422.54.84 - Fax : 32(0)2/428.12.23 [email protected] [email protected]

wEBSITE

The website of the Compagnie Immobilière de Belgique can be accessed at the following address : www.immobel.be

TRANSLATION

Christine Leroy telelingua International

PRINTED By

Massoz

DESIGN & PRODUCTION

www.chriscom.be

MAIN PHOTOGRAPHS

© Georges De Kinder (Projects) © Laurent van Steensel (Portraits)

COvER PHOTO

Ellipse Building (Brussels) Developer : Fortis Real Estate and Compagnie Immobilière Belgique 50/50 Architects : Art & Build – Montois Partners Photograph : Marc Detiff

OTHER PHOTOGRAPHS AND vIRTUAL IMAGES ©

Airprint – M. & J-M. Jaspers - J. Eyers & Partners – Conix Architects – I. Verzar – Serge Brison – V.D.H. Ch. Sateur – JNC International sa – L. Bonnet – Simon SchmidtCompagnie Immobilière de Belgique tries to respect the legal prescriptions related to the copyrights. However it kindly invites every person whose rights might be infringed to contact the Company.

Ce rapport est disponible en français, en néerlandais et en anglais.Dit verslag is beschikbaar in het Nederlands, in het Frans en in het Engels.This report is available in English, in Dutch and in French.

general inFormation

Compagnie immobilière de belgique

LIMITED COMPANY AvENuE J. DubruCq, 175, bOX 1 - 1080 bruSSELS - bELGIuM

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