france offices · italy offices portfolio / focus on milan €3.9 bn €3.2 bn group share...

PARIS7 NOVEMBER 2019

CAPITAL MARKETS DAY

FRANCE OFFICES

AGENDA OF THE DAY

MORNING – 10:00 am to 12:00 pm

CMD 2019 2

Presentation on Covivio France Offices strategy

Lunch - 12:00 pm to 1:00 pm

AFTERNOON – 1:00 pm to ~3:30 pmAsset tour in Paris CBD, Paris 17th North & Levallois

End of the asset tour in Porte Maillot (metro line 1, RER A, taxi)

3

SUMMARY OF THE PRESENTATION

I. INTRODUCTION 05Christophe KULLMANN, CEO

II. GREATER PARIS OFFICE MARKET 19Charles BOUDET, CEO JLL France & Virginie HOUZE, Head of Research JLL France

III. COVIVIO FRANCE OFFICES STRATEGY 21Olivier ESTEVE, Deputy CEO ; Marielle SEEGMULLER, Operations Director ; Laurie GOUDALLIER, Chief Digital Officer

III-A. DEVELOPMENT PIPELINE 21

III-B. CLIENT-ORIENTED STRATEGY 55

IV. KEY TAKEWAYS 87

V. ASSET TOUR 89

VI. APPENDIX 108

CMD 2019

CMD 2019 4

TODAY’S PRESENTATION OBJECTIVES

1 Our portfolio has a significant growth potential

2 Our development pipeline will deliver solid revenue & value growth

Our portfolio will fuel this pipeline in the short & medium term, especially in Paris

We are broadening our client-focused approach with new services & digital transformation…

… which will deliver strong & resilient operating results

FOCUS ON FRANCE OFFICES & DEVELOPMENT PIPELINE

4

3

I.

INTRODUCTIONTHE SUCCESS OF OUR BUSINESS MODEL

INTRODUCTION TO THE OFFICES STRATEGY

CMD 2019 6

COVIVIO, A DIVERSIFIED SPECIALIST

1 €16 bn Group share2 Breakdown in Group share

15%57%

OFFICES€10.9 bn

A €23 BN1 INTEGRATED PORTFOLIO BUILT ON 3 STRATEGIC PILLARS

26%

RESIDENTIAL€6.1 bn

HOTELS€5.4 bn

And <2% non-strategic

43% 21%30% 6%

DEVELOPMENT

PIPELINE

CLIENT

FOCUSED

FOCUS ON MAJOR

EUROPEAN CITIES1

2

3

DIVERSIFIED BY ACTIVITY2

DIVERSIFIED BY GEOGRAPHY2

CMD 2019 7

A SUCCESSFUL BUSINESS MODEL / SUSTAINABLE HIGH OCCUPANCY AND LONG LEASES

94.8% 95.8% 95.5% 96.0% 97.1% 96.3% 96.7% 98.0% 98.1% 97.9%

6.1 6.05.5

5.8 5.8

7.3 7.2

6.67.1 7.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Occupancy rate Firm average lease length

6.4years on average

96.6%

on average

CMD 2019 8

A SUCCESSFUL BUSINESS MODEL / EXCELLENT TRACK RECORD ON THE DEVELOPMENT PIPELINE

2010-201910 YEARS OF SUCCESSFUL DEVELOPMENT PROJECTS

7%

YIELD ON COST

30%VALUE CREATION

AT DELIVERY

€2.4 BNDEVELOPMENT COST1

480,000 m²OF OFFICES

96%

OCCUPANCYIN THE YEAR OF THE DELIVERY

61PROJECTS

2,870 HOTEL ROOMS

1 €1.6 bn Group share

I.INTRODUCTION

THE SUCCESS OF THE BUSINESS MODEL

INTRODUCTION ON THE OFFICES STRATEGY

CMD 2019 10

COVIVIO OFFICES STRATEGY

1

HIGH-QUALITY

PORTFOLIO

3

ENHANCING

OUR CLIENT-FOCUS

2

STRONG

DEVELOPMENT

PIPELINE

CMD 2019 11

1 - A HIGH-QUALITY, WELL LOCATED OFFICES PORTFOLIO

€10.9 bn€9.0 bn Group share

…focused on dynamic marketsAttractive locations in France, Italy & Germany…

95%

1 Excluding Telecom Italia portfolio, leased for 11 years 2 Economic rent on new space in Greater Paris & prime rent in Milan and Berlin

Sources: CBRE, JLL

Rent increase for new space in

Greater Paris, Milan & Berlin

+6%per year2

on average since 2015& &

PARIS€2.2 bn Group share

GREATER PARIS€2.6 bn

MAJOR FRENCH

CITIES€0.7 bn

Lyon, Bordeaux, Marseille, Lille

MILAN€2.2 bn

BERLIN€0.2 bn

LOCATED IN1

CMD 2019 12

FRANCE OFFICES PORTFOLIO / DYNAMIC LOCATIONS WITH POTENTIAL

€6.8 bn

€5.7 bnGroup share

Portfolio 96% in strategic locations

& major French cities (13%)(Lyon, Marseille, Bordeaux, Lille)

Strong development pipeline

Paris (38%)

Major business districts in Greater Paris (45%)

€4.7 bnof projects

1.6 million m²

of offices

750,000 m²

of redevelopments & new constructions

CMD 2019 13

ITALY OFFICES PORTFOLIO / FOCUS ON MILAN

€3.9 bn

€3.2 bnGroup share

Portfolio 90% in Milan1 Strong development pipeline

€0.8 bnof projects

1.6 million m²

of offices

170,000 m²

of redevelopments & new constructions

Centre

Semi-centre

Periphery

CBD

Porta Nuova

M4

M4

M2

M2

M1

M1

M1

M5

M3

M3

Linate Airport

M5

Milanofiori

Navigli

Lorenteggio

City Life

Certosa Maciachini

Bicocca

Lambrate /Forlanini

Ripamonti

20%Periphery

56%CBD & Porta Nuova

Rental portfolio

Developments

24%Center &

Semi-Center

1 Excluding Telecom Italia portfolio, leased for 11 years

CMD 2019 14

ACCELERATING IN OFFICES IN GERMANY (1/2)

ESTABLISHED LOCAL

PRESENCE SINCE 2006

SUPPORTIVE MARKET

IN THE MAJOR GERMAN CITIES1

EXISTING DEVELOPMENT

TEAM

Existing teams for Asset Management & Property management

Established partnership with local administrations

Knowledge of Office markets

Development team in Berlin since 2017

Strong track-record in France & Italy to be duplicated in Germany

Increasing take-up: +7% per year on average over last 5 years

Low vacancy rate: 4.1%

Lack of supply : space under construction2 = 40% of yearly take-up

1 Berlin, Munich, Frankfurt, Hamburg, Cologne, Düsseldorf, Essen, Leipzig2 Available space under construction

Source: BNP RE

2

3

1

CMD 2019 15

ACCELERATING IN OFFICES IN GERMANY (2/2)

A flagship development

project…

60,000 m² mixed-use projectOffices / Residential / Retail

BERLIN ALEXANDERPLATZ

EBERSWALDER

BERLIN

… already €200 million

of offices in our portfolio…

67,000 m² over 15 assetsCurrently valued €3,000/m²

with a 4% yield

+35% rent increase potential

IN BERLIN

…and ~€90 million

of investments secured in 2019

Acquisition of an existing asset10,200 m² for €30 million

4.5% yield and >50% reversion potential

& a land bank for development12,600 m² to be developed for €57 million

at 6% yield on cost

IN BERLIN

End-June 2019 Today

CMD 2019 16

2 - SECOND PILLAR OF THE STRATEGY / DEVELOPMENT PIPELINE

Offices in Italy & Germany

Offices in France

€8.0 bn€6.8 bn group share

€1.4 bn

+1/3

TOTAL EUROPEAN

PIPELINE€6.0 bn

€4.4 bn group share

€2.7 bn

German residential, hotels & mixed-use

+70%

€1.2 bn

€2.0 bn

€4.7 bn

€1.3 bn

€2.0 bn

Focus on France Offices pipeline in section III-A

A SIGNIFICANT & GROWING POTENTIAL IDENTIFIED IN OUR PORTFOLIO

CMD 2019 17

3 – CLIENT-FOCUSED APPROACH SINCE THE BEGINING

MAIN

CLIENT

NEEDS

COVIVIO’S

STRATEGY

Location | CostLocation | Cost

Energy performance

Location | Well-being | Flexibility

Cost | Sustainability

• Acceleration of developments

• Provide services in our buildings

• Offer flexible workspace

• Sale & leaseback

• Property development

• Building long-term

partnerships with large

corporates

2001 - 2007 2008 - 2018 TODAY

https://www.google.com/imgres?imgurl=https://s3-eu-west-1.amazonaws.com/makesense.rocks/uploads/sites/6/20180822141952/logo-EDF.png&imgrefurl=https://organisations.makesense.org/logo-edf-2/&docid=jEFjugUHxU8usM&tbnid=XJOLh3b-ZanFQM:&vet=10ahUKEwiEhbv2pp7lAhUGEcAKHccDDFMQMwhRKAQwBA..i&w=818&h=491&bih=1037&biw=1867&q=logo%20edf&ved=0ahUKEwiEhbv2pp7lAhUGEcAKHccDDFMQMwhRKAQwBA&iact=mrc&uact=8

IMPROVE OUR EFFICIENCYTHROUGH DIGITALIZATION

CMD 2019 18

DEPLOY OUR SOLUTIONS THROUGHOUT OUR PORTFOLIO

Focus in section III-B of the presentation

BE CLOSE TOOUR END-USERS

Survey of 1,300 end-users

IMPROVE LIFEIN OUR BUILDINGS

Implement new services to respond to their

wishes

OFFER FLEXIBLE SOLUTIONS

Deploy our flexible workspace offer,

Wellio

Digital roadmapfor the next 3 years

II. GREATER PARIS OFFICE MARKET

JLL FRANCE

CMD 2019 20

PRESENTATION ON THE GREATER PARIS OFFICE MARKET BY JLL

1 / Office top trends: Human Experience, Digital & Flex

Charles BOUDET, CEO of JLL France

2 / The Office market in Greater Paris

Virginie HOUZÉ, Head of Research at JLL France

III.COVIVIO FRANCE OFFICES STRATEGY

III-A. DEVELOPMENT PIPELINE- SUCCESSFUL COMMITTED PROJECTS- POTENTIAL IN OUR PORTFOLIO

III-B. CLIENT-ORIENTED STRATEGY- MORE SERVICES IN OUR PORTFOLIO- FLEX-WORKSPACE OFFER- DIGITALIZATION

CMD 2019 22

A SIGNIFICANT PIPELINE LOCATED MAINLY IN PARIS

€4.7 bn development pipeline in France offices€4.3 bn Group share

~50% in Paris

760,000 m²60% redevelopments / 40% new constructions

~35% in Greater Paris

business districts~15% in Major cities

Lyon

Bordeaux

Lille

HIGH-QUALITY

LOCATIONS

A MIX OF

OPERATIONS

LARGE GROWTH

POTENTIAL >35% value creation

€1.4 bn committed projects

€3.3 bn managed projects

Total France offices pipeline €4.7 bn Committed projects €1.4 bn Managed projects €3.3 bn

End-2017 End-2018 End-June 2019 Today

CMD 2019 23

CAPACITY TO RENEW OUR DEVELOPMENT PROJECTS

€0.4 bn

€2.2 bn

€2.6 bn

MANAGED PROJECTS

COMMITTED PROJECTS

€2.8 bn

€1.1 bn

€1.7 bn

€4.7 bn

€1.4 bn

€3.3 bn

ACCELERATING THE PACE OF COMMITMENTS

& FUELLING THE PIPELINE WITH FUTURE PROJECTS

x3

X2.5

€2.7 bn

€1.4 bn

€1.3 bn

+30%

TOTAL FRANCE

OFFICES PIPELINE

at 100%

CMD 2019 24

€1.4 BN OF COMMITTED PROJECTS IN ATTRACTIVE LOCATIONS (€1.1 BN GS)

210,000 m²

5.8% yield on cost

46% pre-letof which 57% pre-let for 2020 deliveries

Cœur d’Orly

Meudon Ducasse

Chatillon IRO

Montrouge FLOW

Paris 5 Gobelins

Paris 8 Jean Goujon

Levallois ALISParis 17 N2

Paris 17 So Pop


Silex 2

Lyon Part-Dieu

>35% target value creation

with only ¼ of it already in the NAV

86%Paris and Greater Paris

And

6%Montpellier

8%Lyon

CMD 2019

LEVALLOIS / A HISTORIC BUSINESS DISTRICT

ASSET TOUR - SEPTEMBER

2019

Thais

Delivered in 2016

OFFICE STOCK ~950,000 M²


25

2019 2020 2021 2022

2000ACQUISITION OF BLOCKS A & C

AT A 12% YIELD

2015ACQUISITION OF BLOCK B

AT A 6.4% YIELD

Jan. 2019DEPARTURE OF THE TENANT

2022EXPECTED DELIVERY

2011 2012 2013 2014 2015 2016 2017 2018 2019

CMD 2019 26

LEVALLOIS ALIS / A PRIME REDEVELOPMENT

► SCARCITY OF NEW SPACE

An attractive investment … … with limited risks

~40%

TARGET VALUE

CREATION

TOTAL

COST

€215 m 5.0%

YIELD

ON COST

Sources: JLL, CBRE, Crane Survey

Acquisition of block B

+18%

vs 2015

Prime economic rent in Levallois

Available surface on future deliveries

Annual take-up 1

84,000 m²

► ALIS IS THE ONLY PROJECT TO BE

DELIVERED IN 2022 IN LEVALLOIS

ALIS

TARGET RENT

INCREASEVS PREVIOUS TENANT

+60%

1 2013- 2018 average

… for redevelopment into a prime asset …


PARIS 17 – CLICHY - SAINT-OUEN / A DYNAMIC AREA IN THE NORTH OF PARIS

New Paris courthouse

OFFICE STOCK ~1.2 MILLION M²


27

2011 2012 2013 2014 2015 2016 2017 2018 2019

2012ACQUISITION OF CITROËN HQ

AT 8.1% YIELD

2018DEPARTURE OF CITROËN

2019BUILDING PERMIT

WITH A 70% EXTENSION TO 31,000 M²

2019SYNDICATION OF 49.9%

WITH CREDIT AGRICOLE ASSURANCES

2021EXPECTED DELIVERY

CMD 2019 28

PARIS SO POP / A FLAGSHIP DEMOLITION-RECONSTRUCTION PROJECT

An attractive investment … … with limited risks

~ 70%

TARGET VALUE

CREATIONINCLUDING MARGIN ON SYNDICATION

TOTAL

COST

€226 m 6.1%

YIELD

ON COST


TARGET RENT

INCREASEVS PREVIOUS TENANT

+ 145%

1 2013- 2018 average

… for redevelopment into a prime asset …


SHARED AT 50%

► ATTRACTIVE LOCATION CLOSE

TO THE METRO LINE 14

► INCREASINGLY DEMANDED AREA

► SCARCITY OF NEW SPACE

2019 2020 2021

Acquisition

+25%

vs 2012

Annual take-up 1

116,000 m²

So POP

Prime economic rent in St OuenAvailable surface on future deliveries

MALAKOFF-MONTROUGE-CHATILLON BUSINESS DISTRICT

2929

OFFICE STOCK ~1 MILLION M²

8 minTransport HUB

Chatillon-Montrouge

8 min


2011 2012 2013 2014 2015 2016 2017 2018 2019

2015ACQUISITION OF FLOW, A VACANT ASSET

OF 18,000 M² IN MONTROUGE

2017FLOW BUILDING PERMIT

WITH 30% EXTENSION OF THE SURFACE

2018ACQUISITION OF IRO

2020EXPECTED DELIVERY OF IRO & FLOW 2019 2020 2021

CMD 2019 30

FLOW & IRO / TWO HIGH-QUALITY CONSTRUCTION PROJECTS

Prime economic rent

Acquisition

+20%

vs 2015

Annual take-up 1

55,000 m²

IRO

€115 M 6.6%

YIELD ON COST

FLOW

Available surface on future deliveries


An attractive investment … … with limited risks… for redevelopment into prime assets …


1 2013- 2018 average

► IRO IS THE ONLY NEW OFFER

SCHEDULED FOR 2020 IN THE AREA

100%

PRE-LET

ON FLOW

20%

PRE-LET

ON IRO

~55%

TARGET VALUE

CREATION

TOTAL COST

€139 M 6.3%

YIELD ON COST

IRO

CMD 2019 32

SIGNIFICANT POTENTIAL IN OUR PORTFOLIO TO RENEW OUR PIPELINE…

REDEVELOPMENT OF “HISTORIC” ASSETS

LAND BANKS

SELECTIVE VALUE-ADD ACQUISTIONS

~ 550,000 m² OF OFFICES

€1.2 bn

€1.5 bn

€0.6 bn

€3.3 BN TOTAL COST

€3.2 BN GROUP HARE

>35%

POTENTIAL VALUE CREATION


1

2

3

CMD 2019 33

…LOCATED IN KEY STRATEGIC MARKETS

50%

30%

Paris

Greater

Paris

Lille

Bordeaux

Lyon


MAJOR

REGIONAL

CITIES

20%

CMD 2019 34

ATTRACTIVE LOCATIONS IN PARIS & GREATER PARIS

Jemmapes

Bobillot

Raspail

Keller

Provence

Laborde

Anjou

Carnot

Saint Denis PleyelSaint Ouen Victor Hugo

Rueil Lesseps

Boulogne Molitor

Levallois Pereire

Velizy / Meudon

CAP 18

Voltaire

Redevelopment

Land Banks

Selective acquisition


80%

of managed projects

€2.5 bn

total cost

360,000 m²

REDEVELOPMENTS OF “HISTORIC” ASSETS

CMD 2019 36

A STRONG TRACK RECORD OF REDEVELOPMENT

PARIS MENILMONTANT

Full Redevelopment – 2017

4,500 m²ACQUISITION: 2006

LEVALLOIS THAIS

Demolition & Reconstruction – 2017

5,500 m²ACQUISITION: 2003


NOW BEFORE

ORANGE

STAYED AS

TENANT

MULTI-LET

TOTAL

COST

€26 m

YIELD

ON COST

5.2%

VALUE

CREATION

41%

TOTAL

COST

€41 m

YIELD

ON COST

6.5%

VALUE

CREATION

81%

CMD 2019 37

A PIPELINE MAINLY LOCATED IN PARIS…

Jemmapes

Bobillot

Raspail

Keller

Provence

Laborde

Anjou

Carnot

Voltaire

11 ASSETS

88,000m²

AVERAGE RENT

419€/m²

AVERAGE VALUE

8,300€/m²

Boulogne Molitor

Levallois Pereire


€1.2BN

TOTALCOST

750 €/m²

650 €/m²

350 €/m²

650 €/m²

440 €/m² 440 €/m²

320 €/m²

850 €/m² 850 €/m²

750 €/m² 740 €/m²

570 €/m²

650 €/m²

500 €/m²

200 €/m²

300 €/m²

400 €/m²

500 €/m²

600 €/m²

700 €/m²

800 €/m²

900 €/m²

CMD 2019 38

… IN PRIME OR EMERGING AREAS IN PARIS

PARISÉTOILE

PARIS3/4/10/11

PARIS5/6/7

PARIS12/13

PARIS14/15

PARIS18/19/20

PARISOPÉRA

Provence VoltaireJemmapes

KellerRaspail

590 €/m²

350 €/m²

245 €/m²

340 €/m²

Bobillot

Prime Rent 2019

Min Prime Rent over 10 years

Average rent on our assets

LabordeAnjouCarnot


+13% +30% +114%

340 €/m²

+47%

GROWTH IN PRIME RENTS IN PARIS BY AREA OVER 10 YEARS

Growth in prime rents

over 10 years

550 €/m²

+25%

Source : CBRE

Covivio managed projects

CMD 2019 39

SHORT-TERM PROJECTS

SURFACE

35,000m²

EXPECTED RENTAL

INCREASE

~45%

TARGET VALUE

CREATION

>35%

202220212020


€0.6BN

TOTALCOST

LABORDE 8th

6,200 m²ANJOU 8th

10,100 m²CARNOT 17th

11,200 m²

PROVENCE 9th

7,500 m²

SEE

FOCUS

CMD 2019 40

FOCUS / ANJOU, LARGE REDEVELOPMENT POTENTIAL IN THE CBD

10,100 m²let to Orange until 2021

Current rent

€560/m² on offices


TODAY

Redevelopment project to a prime office building

Target rent

€900/m²

TOMORROW

Orange Anjou

Palais de l'Elysée

Saint Lazard

Train Station

Grand Palais

Madeleine

Concorde

Saint-

Augustin

CMD 2019 41

MEDIUM-TERM PROJECTS


SURFACE

54,000m²

EXPECTED RENTAL

INCREASE

~50%

TARGET VALUE

CREATION

>35%

202420232021 €0.6BN

TOTALCOST

BOULOGNE Molitor 4,500 m²

JEMMAPES 10th

9,200 m²KELLER 15th

3,500 m²RASPAIL 14th

14,000 m²

SEE

FOCUS

BOBILLOT 13th

3,700 m²

2020 2022

LEVALLOIS Pereire

8,000 m²VOLTAIRE 11th

10,000 m²

CMD 2019 42

FOCUS / PARIS 10th JEMMAPES, REDEVELOPMENT POTENTIAL IN AN EMERGING AREA


PARIS JEMMAPES

Parc des Buttes

Chaumont

Colonel Fabien

Gare de L’Est

Gare du Nord

Place de la

République

TODAY

TOMORROW

9,200 m²fully let to Orange until 2022

Current rent

€255/m² on offices

Redevelopment project to a prime office building

+ 2,500 m² extension

Target rent

€600/m²

Bassin de la Villette

LAND BANKS

VÉLIZY / MEUDON80,000 m²

PARIS100,000 m²

CMD 2019 44

LAND BANKS / 290,000 M² TO BE DEVELOPPED FOR €1.5 BN

LILLE22,000 m²

LYON 55,000 m²

BORDEAUX 30,000 m²


PARIS + GREATER PARIS

SEE

FOCUS

SEE

FOCUS

Innovel Parc Nord

Dewoitine

Vélizy 2

OFFICE AREA (part of the Inovel Parc)

CLAMART

RESIDENTIAL

AREA

CMD 2019 45

FOCUS / VELIZY-MEUDON, AN ATTRACTIVE BUSINESS DISTRICT FOR LARGE CORPORATES

~ 80,000 m²TO DE DEVELOPPED


DASSAULT

CAMPUS

DS Campus Extension 2

Thalès extension

VIBE project

++

VÉLIZY-MEUDON BUSINESS DISTRICT: ~1 MILLION M² OF OFFICES

CMD 2019 46

FOCUS / CAP 18, A LARGE CONSTRUCTION POTENTIAL IN PARIS


TODAY

67,000 m²of business premises

Current rent

€135/m²

TOMORROW

Up to 100,000 m²of mixed-useOffices / Hotel / Residential / Public Services

Est. Start Date

2026

Parc des

Buttes

Chaumont

La Vilette

CAP 18

Gare du Nord

Montmartre

Porte de

Clignancourt

Reinventer Paris

project

Rosa Park

Porte de la Chapelle

Gare de L’Est

Vill’Up shopping

center

Campus BNP Paribas

The Cargo business incubator

SELECTIVE VALUE-ADD ACQUISITIONS

CMD 2019 48

VALUE-ADD ACQUISITIONS / ~100,000 M² TO BE REDEVELOPPED FOR €0.6 BN

SAINT-DENIS PLEYEL

SAINT-OUEN VICTOR HUGO

So Pop (Ongoing)

N2 (Ongoing)

Saint-Lazare

Line 14 with extension

Charles de Gaulle Etoile

RUEIL LESSEPS

A

RER Line A


SAINT-DENIS PLEYEL / 15,000 m²

SAINT-OUEN V. HUGO / 40,000 m²

RUEIL LESSEPS / 44,000 m²

FOCUS / RUEIL VINCI, A VALUE-ADD ACQUISITION

Noisy-Champs

CMD 2019 49


ACQUISITION IN 2016 at 7.8% yield

38,600 m²(headquarters of Vinci)

Current rent

€250/m²

TOMORROW

Up to 44,000 m²urban campus integrated in the city

Target rent: €380/m²

Est. Start Date

2022

300 m

from RER A

RUEIL VINCI

Line 15

Grand Paris Express

(2023)

AFTER

BEFORE

SO POP

VICTOR HUGO

Les Docks (New green urban development zone)

New Regional HQ

of Ile-de-France region

New Paris North

Hospital

CMD 2019 50

FOCUS / SAINT OUEN VICTOR HUGO, 14,000 M² BUILDING WITH ADJACENT LAND


Line 14 to be delivered in 2020/2021

Project lines 14 to be delivered in 2024/2025

TODAY

14,000 m²of offices & light industrial

Current rent

€150/m²

TOMORROW

Up to 40,000 m²of Offices

Est. Start Date

2024

Saint-Ouen

CMD 2019 51

FOCUS / SAINT DENIS PLEYEL, REDEVELOPMENT ON THE METRO LINE 14


ST DENIS PLEYEL

VICTOR HUGO

To Roissy

Line 14 to be delivered in 2020/2021

Future lines 14 and 16 for 2024/2025 and line 15 in 2030

Transport HUBSt Denis Pleyel

New Regional HQ of Ile-de-France

Olympic Village

2024

TODAY

11,600 m²of multi-tenant offices

Current rent

€130/m²

TOMORROW

Up to 15,000 m²of prime offices

Est. Start Date

2024

KEY TAKEAWAYS

ON FRANCE OFFICES DEVELOPMENT PIPELINE

2020-2021

CMD 2019 53

FRANCES OFFICES / SUSTAINABLE PACE OF COMMITMENTS & DELIVERIES

OF DELIVERIES PER YEAR ON AVERAGE

€1.4 BNCOMMITTED PROJECTS

Mainly redevelopments

in Paris

€1.0 BNSHORT-TERM

PROJECTS

€1.0 BNMEDIUM-TERM

PROJECTS

ESTIMATED LAUNCH

€1.3 BNLONGER-TERM

PROJECTS

Mainly redevelopments

in Paris

Land banks& redevelopments of

value-add acquisitions

€4.7 BNPIPELINE

TODAY 2022-2023 2024 & BEYOND

~€400MILLION

GROUP SHARE

~+€7 MGroup share

~+€25 M~+€24 M

~+€20 M

2020 2021 2022 2023

57%

32%

CMD 2019 54

FRANCE OFFICES / SUSTAINABLE SOURCE OF RENTAL GROWTHRENTAL INCOME IN THE YEAR AFTER DELIVERY

& Beyond

% already secured through pre-lettings

FROM COMMITTED PIPELINE FROM MANAGED PIPELINE

~€20 MILLIONGroup share

PER YEAR

ON AVERAGE

Projects already

delivered in 2019

Committed projects

Managed projects

~+€13 M

CMD 2019 56

LISTENING TO MARKET TRENDS & OUR CUSTOMERS’ EXPECTATIONS

WHAT CONSEQUENCES FOR COVIVIO?

Creative Room, Collaborative Spaces, Modern Catering Experiences, Rooftop spaces …

Talent retention

Attractivity

Profitability

REVISED SERVICES OFFER IN OUR BUILDINGS

MORE FLEXIBILITY + PLUG AND WORK SOLUTIONS

Generational needs New workspace useTechnological leap &

digital revolutionNew ways of working

CMD 2019 57

MEASURING OUR CUSTOMERS’ SATISFACTION

ACTION PLANS CO-DEFINEDWITH OUR TENANTS

ACCESSIBILITY

SECURITY COMFORT

SERVICES

SATISFACTION

RATE

7.8

10

SATISFACTION CLIENT SURVEY IN 2019

WITH 1,300 END-USERS INTERVIEWED IN 12 BUILDINGS

CMD 2019 58

FOCUS ON MAIN EXPECTATIONS

1COMFORT & GREEN

CERTIFICATIONS

2SERVICES

3MOBILITY

4DIGITALIZATION

490

540

420

372354

338 332

2008 2010 2012 2014 2016 2017 2018

Primary Energy (kWhpe/GLAsqm/year)

CMD 2019 59

1 / GREEN CERTIFICATIONS

1 Core portfolio only

“GREENING” RATE FRANCE OFFICES1

100%

TARGET

OF GREEN OFFICES IN 2020

-40%

TARGET

IN ENERGY CONSUMPTION

2008-2020

-32%ACHIEVEMENTSVS TARGET AT END-2018

CMD 2019 60

1 / ENHANCED GREEN AREAS ON ONGOING AND FUTURE DEVELOPMENT

FOCUSING ON “BIODIVERCITY” LABEL… … AND OTHER APPROACHES

Green areas Rooftops Terraces

PARIS CARRÉ SUFFREN

PARIS JEAN GOUJON CHATILLON IRO

VELIZY

CAMPUS EIFFAGE

MONTPELLIER POMPIGNANE

LA DÉFENSE CB21

PARIS GOBELINS

100%

TARGET

OF DEVELOPMENTS WITH GREEN

AREAS

CMD 2019 61

1 / COMFORT CERTIFICATIONS

AN EXPERIMENTAL APPROACH

Feedbackfrom our stakeholders

Define

Group policy

PARIS JEAN GOUJON

SO POP

CHATILLON IRO PARIS ART&CO

CMD 2019 62

2 / DIFFERENTIATED SERVICING APPROACHINSPIRED BY OUR HOSPITALITY BUSINESS LINE

THAÏS - LEVALLOIS DUGUESCLIN - LYON RIVERSIDE - TOULOUSE CARRE SUFFREN - PARIS ART&CO - PARIS

DIGITAL CONCIERGE SERVICES

100%

TARGET

OF OFFICES WITH SERVICES

COMPONENTIN 2023

PHYSICAL CONCIERGE SERVICES

FOOD FACILITIES

COLLABORATIVE / WELLNESS SPACES

ALL INCLUSIVE OFFER

CMD 2019 63

2 / PARIS CARRE SUFFREN, REVISITING THE SERVICES OFFER

TOTAL INVESTMENT

€9.5 M

3,000 m²

RESHAPED

RENT INCREASE

+10%

NEW

CATERING

EXPERIENCE

Ongoingrefurbishment

of services areas

BAR

ALTERNATIVE

WORKING

AREAS

25,000 M² BUILDING

CMD 2019 64

2 / LYON SILEX 2 / AN ALL-INCLUSIVE OFFER

FLEXIBLE SPACES SERVICES

TERRACES AND SKY-RESTAURANT GREEN AREAS

& WELL-BEING

31,000 M² OF PRIME OFFICES IN LYON PART-DIEU TO BE DELIVERED EARLY-2021

CMD 2019 65

3 / ENSURING HIGH ACCESSIBILITY OF OUR BUILDINGS

61%

>2 rail-transport access(subway, tramway, RER)

CLOSE PROXIMITYLESS THAN 500 M TO PUBLIC TRANSPORT

97.7%

2.3%ACCESSIBLEBETWEEN 500 M

AND 1 KM

38%

>1 rail-transport access

1%

Bus only

1.8 m

2.2 m

2.8 m

END-2016 END-2017 END- 2018

CMD 2019 67

A GROWING MARKET WITH SOLID PERSPECTIVES

Sources: JLL, CBRE Occupier survey 2019

Flex-workspace in Europe (in m²)

48%

OF COMPANIES EXPECT TO USE SOME FLEX-WORKSPACE

IN THE NEXT 3 YEARS

VS 28% TODAY

+50%SPACE

IN TWOYEARS

ONLY ~1%

OF TOTAL OFFICE STOCKin Paris, Milan & Berlin

GROWING DEMAND SUPPORTS NEW OPENINGS… …WITH ROOM TO GROW

CMD 2019 68

A KEY COMPONENT OF OUR OFFICES STRATEGY

NEUTRALIZE THE RISK

OF OBSOLESENCE

ABILITY TO BEST RESPOND

TO CLIENTS’ NEEDS

+25-30% AVERAGE PROFITABILITY

vs RENTAL INCOME

STRATEGIC DRIVERS CONCRETE TOOLS OPERTIONAL RESULT

DIRECT CONTACT

WITH END-USERS

IMPROVE OUR

OFFICES OFFER

A SUCCESSFUL

CONCEPT

Integrate users feedbacks

in the conception of our buildings

The last brick in our services offer

Offer a full range of products(Traditional lease, flex-workspace, mixed-buildings)

96% occupancy rate

Increasing prices per desk

CMD 2019 69

AN ATTRACTIVE POSITIONING IN THE EUROPEAN FLEXIBLE LANDSCAPE

Source: JLL, Xerfi

CO-WORKING OFFERS

21%

OF THE SURFACE

COMPLETE OFFERS(co-working & private offices)

SERVICED OFFICES(business center)

34%

OF THE SURFACE

45%

OF THE SURFACE

The most dynamic segment>50% of the growth of Europe

flexible space since 2016

https://www.google.com/imgres?imgurl=https://www.buro.com/documents/actualites/diaporama/4_16.jpg&imgrefurl=https://www.buro.com/actualites/actualites-nationales-1/buro-club-nomme-son-nouveau-directeur-du-developpement-didier-coppi-4/&docid=8ZiMX6ArZWW5iM&tbnid=2dTGiU5spBT0JM:&vet=10ahUKEwj4wMn2xaXlAhVys3EKHZw8BgkQMwhEKAAwAA..i&w=823&h=402&bih=1070&biw=2133&q=buro%20club%20logo&ved=0ahUKEwj4wMn2xaXlAhVys3EKHZw8BgkQMwhEKAAwAA&iact=mrc&uact=8

https://www.google.com/imgres?imgurl=http://www.servcorp.fr/images/Servcorp_Logo_Script_Brown.png&imgrefurl=http://www.servcorp.fr/fr/servcorp-vs-we-work/&docid=KiXCAfsjutGo1M&tbnid=Cu_k4wqDG9P-XM:&vet=10ahUKEwjA5cP9xaXlAhVtQxUIHS4BD_4QMwhHKAAwAA..i&w=5000&h=2099&bih=1070&biw=2133&q=servcopr%20logo&ved=0ahUKEwjA5cP9xaXlAhVtQxUIHS4BD_4QMwhHKAAwAA&iact=mrc&uact=8

CMD 2019 70

COVIVIO FLEXIBLE WORKSPACE / 12,000 M² OPENED AT 4 SITES

Sept. 2018March 2018End-2017

EUROMED MARSEILLE

OPENINGof the 1st

2,300 m²

Oct. 2018

GARE DE LYON – PARIS 12th

MIROMESNIL – PARIS 8th MONTMARTRE – PARIS 18th

OPENINGof the 2nd sitein Paris5,000 m²

OPENINGof the 1st site

located in Paris 3,500 m²

1,400 m² in partnership

with Orange3rd site in Paris

CMD 2019 71

A COMPLEMENTARY OFFER / A FULL RANGE OF REAL ESTATE SOLUTIONS

CALYPSO

EUROMED MARSEILLE

Buildings 3,000 m² to 5,000 m² in central locations

ART&CO

PARIS GARE DE LYON

TRADITIONAL

LEASE

MIXED-BUILDINGS WITH TRADITIONAL

LEASE & FLEXIBLE WORKSPACE

BUILDINGS DEDICATED

TO FLEXIBLE WORKSPACE

WELLIO MIROMESNIL

PARIS 8th

Large buildings (>5,000 m²)in attractive locations & great access to transportation

Wide range of layouts & locations3.2 million m² in France, Italy & Germany

LEASE OUR BUILDINGS FASTER, AT HIGHER RENTS & REINFORCE CLIENT LOYALTY

CMD 2019 72

EXAMPLE OF A MIXED-USE BUILDING / ART&CO IN GARE DE LYON

13,000 m²

OFFICE

CO-WORKING

OFFICE

ROOFTOP

BAR / WORK CAFE

RECEPTION DESK / BAR LOUNGE

MEETINGS

EVENTS & INNOVATION SPACE

PROJECT ROOMS

TRADITIONAL LEASE

8,000 m² (~60%) Traditional leases

5,000 m² (~40%)Flexible workspace(720 workstations)

CMD 2019 73

A COMPLEMENTARY OFFER / EXPANDING OUR CLIENT BASE

70%

OF OUR FLEXIBLE CLIENTS

ARE LARGE CORPORATES

WE SUPPORT

OUR PARTNERS

IN THEIR TRANSFORMATION

Traditional lease

partners becoming

flex-workspace

clients

NEW COMPANIES to support in their real

estate strategy, for

more business

opportunities

CMD 2019 74

EXAMPLE OF A BUILDING IN PARTNERSHIP WITH ORANGE /MONTMARTRE IN PARIS 18th

5,900 m²

4,500 m² (76%)

Lease extension with Orange in 2018 +12 years firm

1,400 m² (24%)

Flex-workspace offer 100% occupiedincl. 50% secured by Orange

► Secure Orange presence

► Offer flexibility and innovative

workspace environment

► Improve quality of the asset

► Improve economic terms

WIN-WIN

DEAL

CMD 2019 75

A COMPLEMENTARY OFFER / THE BENEFITS OF AN INTEGRATED MODEL

Rely on our in-house development team

IN THE DEVELOPMENT PHASE IN THE OPERATING PHASE

FLEXIBLE WORKSPACE IS TAKEN INTO ACCOUNT

AT DESIGN PHASE

Rely on our in-house property management team

CMD 2019 76

A SUCCESSFUL CONCEPT (1/2)

1 On the office part

PARIS MIROMESNIL3,500 m² 96% occupancy

PARIS GARE DE LYON5,000 m² 95% occupancy

4SITES OPEN

IN FRANCE

>12MONTHSAVERAGE

CONTRACT LENGHT

+30% ON PRICE PER DESKin Wellio Miromesnil

between first signing & current negotiations

96% OCCUPANCY ON AVERAGE1

INCREASING PRICES

PARIS MONTMARTRE1,400 m² 100% occupancy

MARSEILLE EUROMED2,300 m² 97% occupancy

CMD 2019 77

A SUCCESSFUL CONCEPT (2/2)

~€15 million RevenueIN 2020

~€8.5 million EBITEXCLUDING HOLDING COSTS

ON OPERATING SITES

+25-30%

AVERAGE PROFITABILITYEBIT vs RENT

CMD 2019 78

NEXT OPENINGS / 22,500 M² IN FRANCE & IN MILAN BY 2022

IN 2019

& 2020

IN 2021

& 2022

BORDEAUX

CITÉ DU

NUMÉRIQUE

3,000 m²

MILAN

VIA DANTE

4,700 m²

PARIS 5th

GOBELINS

4,300 m²

PARIS 8th

JEAN

GOUJON

5,000 m²

LYON SILEX 2

5,500 m²

CMD 2019 80

DIGITAL TRANSFORMATION, A KEY RESPONSE TO NEW REAL ESTATE TRENDS

Buildings represent ~25% of CO2 emissions in Europe

90% of our time is spent in a building.

Users require greater flexibility and new services

Real estate sector is not immune to disruption, from

tech companies, telecom, GAFA and start-ups

Real estate and energy prices are rising structurally

NEW WAYS OF LIVING

ENERGY CHALLENGES

ECONOMIC CHALLENGES

NEW PLAYERS

BUILDING

AS A SERVICE

CMD 2019 81

COVIVIO IT & DIGITAL ROADMAP / 3 MAIN PILLARS FOR THE NEXT 3 YEARS

JOINTLY DEVELOPED WITH

OUR EUROPEAN TEAMS

(BUSINESS & IT) WITH EXTERNAL

PARTNER CAPGEMINI INVENT

TO DELIVER the best offer to our clients

TO IMPROVE efficiency and work

differently

TO ANTICIPATE and develop knowledge

1

DATA DRIVEN

ACTIONS

2

EUROPE

& CHANGE

3

1 - BUILDING AS A SERVICE / PARTNERSHIP WITH MONBUILDINGFOR OFFICES CLIENTSDESIGN OUR OFFICE CLIENTS’ DIGITAL JOURNEY

► EARLY 2020 / Delivery on 5 Wellio sites

► 2022 / All service / Core Office Buildings equipped in France, Italy and Germany

► OFFER AN EASY & DIGITAL CLIENT JOURNEY

► COLLECT DATA TO SET UP PERFORMANCE INDICATORS

► DIRECT FOLLOW UP AND MONITORING IN OUR SYSTEMS

► IMPROVE CLIENT SATISFACTION

AN APP & WEB PLATFORM FOR OUR OFFICES CLIENTS(Flex and traditional)

CMD 2019 82

► COMMUNITY & COMMUNICATION

► SMART BOOKING / Meeting rooms, co-working space, with direct payment

► CONCIERGE & MARKETPLACE / For more services

► DOCUMENT MANAGEMENT / Contracts, invoices, building information

► E-TICKETING

► PRINTING

FEATURES

AMBITIONS

DEPLOYMENT

1 - BUILDING AS A SERVICE / A PARTNERSHIP WITH GERMAN START-UP FACILIOO FOR RESIDENTIAL CLIENTS

CMD 2019 83

DIGITAL AS A LEVER

FEATURES

3 MAIN OBJECTIVES

DATA

EFFICIENCY

QUALITY

CLIENT SERVICE / Focus less

on day-to-day, more on clients’

expectations

FASTER RESPONSE TIME

TRANSPARENCY

LESS CALL & EMAILS

IMMEDIATE RECORD ON OUR IT

SYSTEM / Maintenance orders, impacts

on budget

MAINTENANCE / better knowledge

of the portfolio

KPI ON CLIENT SERVICE /

Response time, number of requests

COVIVIO#HOME,

An app for our residential clients…

COMMUNICATION / Direct link

with Covivio

E-TICKETING / Report

and follow-up requests

DOCUMENT MANAGEMENT /

Contracts, invoices

ACCESS / 24/24 and 7/7 to fit

with our clients’ schedule

FREE / available

on app-stores

REAL TIME FOLLOW-UP

EASIER CLIENT JOURNEY

>3,000 users since launch in June 2019

Q4 2019 / START OF TRIAL

MEASURE ENERGY

CONSUMPTIONS

AND ACCESS TO A DATA

PORTAL IN REAL TIME

PILOT AND ANTICIPATE ENERGY

CONSUMPTION OF COVIVIO’S

BUILDINGS FOR EFFICIENCY

CMD 2019 84

2 - A STRONG DRIVE TO ADOPT A DATA-ORIENTED STRATEGY TO SERVE OUR CLIENTS BETTER AND FASTER (1/2)1ST INITIATIVES

22BUILDINGS EQUIPPED WITH SENSORSTO IMPROVE MONITOR ENERGY CONSUMPTION

FIRST TRIAL TO MEASURE ACTUAL

EFFICIENCY ON ONE WELLIO SITE

AN INDUSTRIALIZED AND INCREMENTAL DATA

STRATEGY TO IMPLEMENT IN 2020

CMD 2019 85

2 - A STRONG DRIVE TO ADOPT A DATA DRIVEN STRATEGY TO SERVE OUR CLIENTS BETTER AND FASTER (2/2)1ST INITIATIVES

KNOW OUR CLIENTS BETTER

WITH A CRM SOLUTION

► DATA PORTAL TO ACCESS AND MONITOR

ROOM OCCUPANCY

► ACTION PLAN TO IMPLEMENT ROOM

PER ROOM IF NEEDED

► REVENUE MANAGEMENT

► FOLLOW CLIENTS AT THE EUROPEAN LEVEL

TO PROVIDE BEST SOLUTIONS TO THEIR NEEDS

► DIGITALIZED SALES PROCESS FROM LEAD

TO SIGNATURE

► ACCESS IN MOBILITY

CMD 2019 86

3 - EUROPE & CHANGE / CONCRETE ACTIONS ON CHANGE AND CULTURE FOR INNOVATION

Launch of a JOINT INNOVATION PLATFORM in 2018 for Covivio

employees to PROMOTE NEW IDEAS and empower our teams

to be stakeholders in our transformation

1,001 IDEAS

NEW WAYS OF WORKING

► 4 THEMES: Europe, client service, quality at work and What Else?

► ~500 IDEAS to filter from our 3 countries

► 50% OF IDEAS SELECTED, ongoing or already implemented

► “LAB” PROJECTS in our Wellio site to trial COLLECTIVE

AND SPECIFICALLY THEMED WORKSHOPS

► Agility and project-driven to FIND TRANSFORMATION LEADERS

in Covivio teams

► Teams strongly committed to TO JOINT INNOVATION

KEY TAKEAWAYS

CMD 2019 88

KEY TAKEAWAYS

1

2 Value creation potential

Capacity to fuel this pipeline

Client-oriented approach4

3

Through our development pipelineGrowth potential

>35% target value creation

Focus on France Offices

Mainly in Paris

Full services offer to deploy on our portfolio

Digital transformation

ASSET TOUR

89CMD 2019

CMD 2019 90

ASSET TOUR

11/15 rue d’Anjou, Paris 8

Orange Paris Anjou

11 avenue Delcassé, Paris 8

Wellio Paris Miromesnil – Flexible workspace

23 rue Mederic, Paris 17

Orange Paris Carnot

25 rue Anatole France, Levallois-Perret

Levallois Thais – Multi-let

35 rue Baudin, Levallois-Perret

Levallois Alis – Development project

18 rue Gustave Charpentier, Paris 17

Orange Paris Maillot

ZAC Clichy Batignolles, Paris 17

Paris Streambuilding – Development project

6 rue Fructidor, Paris 17

Paris So Pop – Development project

1

3

4

7

8

9

6

5

9 avenue Percier, Paris 8

Paris Percier – Multi-let2

7

8

9 4

56

23

1

END OF THE ASSET TOUR

PORTE MAILLOT

CMD 2019 91

WELLIO MIROMESNIL / REFURBISHED INTO A FLEX-WORKSPACE BUILDING (1/2)11 AVENUE DELCLASSE, PARIS 8

SURFACE AREA

4,800 m²INCL. 3,500 m² FLEX-SPACE

OCCUPANCY RATE

96%ON FLEXIBLE OFFICE

7TH Event space

1ST floor co-working space

Intermediate floors(Meeting rooms and flexible offices)

Velvet café

PRICE PER DESK

€1,100/month

ON FLEXIBLE OFFICE

320 DESKS

CMD 2019 92

WELLIO MIROMESNIL / REFURBISHED INTO A FLEX-WORKSPACE BUILDING (2/2) 11 AVENUE DELCLASSE, PARIS 8

2017 / DEPARTURE OF THE PREVIOUS

TENANTS AND REFURBISHMENT

MAR. 2018 / OPENING OF WELLIO

END-OCT. 2018 / WELLIO REACHING 90% OF

OCCUPANCY

2009 / ACQUISITIONAT A 7.6% YIELD

Parc

Monceau

Arc de Triomphe

Grand Palais

Madeleine

WELLIO

Miromesnil

Percier

Miromesnil

CMD 2019 93

PERCIER / TROPHEE ASSET IN THE HEART OF THE CBD (1/2)9 AVENUE PERCIER, PARIS 8

SURFACE AREA

8,600 m²

CURRENT RENT ON

OFFICES

€585/m²

OCCUPANCY RATE

98%

Madeleine

Arc de Triomphe

Parc Monceau

Grand Palais

Percier

WELLIO

Miromesnil

FIRM LEASE TERM

2 YEARS

Saint Lazard

Train Station

CMD 2019 94

2015 / LEASE WITH CHLOÉ GROUP6,000 M² AT €570/M²

2009 / ACQUISITIONAT A 6.3% YIELD

MAIN TENANT

CHLOÉ GROUP (90%)

PERCIER / TROPHEE ASSET IN THE HEART OF THE CBD (2/2)9 AVENUE PERCIER, PARIS 8

>10% RENT INCREASE POTENTIAL

2018 / ADDITIONAL LEASE WITH CHLOÉ1,400 M² AT €640/M²

CMD 2019 95

SURFACE AREA

10,100 m²

OCCUPANCY RATE

100%ORANGE (93%)

& LA POSTE (7%)

ORANGE ANJOU / REDEVELOPMENT POTENTIAL IN THE CBD (1/2)11/15 RUE D’ANJOU PARIS 8

FIRM LEASE TERM

2 YEARS

RENT ON OFFICES

€560 /m²Orange Anjou

The Elysée palace

Saint Lazard

Train Station

Grand Palais

Madeleine

Concorde

Saint-Augustin

CMD 2019 96

2021 / END OF LEASE OF ORANGE AND LA POSTE

2006 / SALE & LEASEBACK WITH ORANGE

AT 6.2% YIELD

EXTRACTING RENT INCREASE & VALUE CREATION

THROUGH REDEVELOPMENT

€900/m² CURRENT PRIME RENT IN THE AREA

3% CURRENT PRIME YIELD

ORANGE ANJOU / REDEVELOPMENT POTENTIAL IN THE CBD (1/2)11/15 RUE D’ANJOU PARIS 8

CMD 2019 97

ORANGE CARNOT / REDEVELOPMENT POTENTIAL IN THE CBD (1/2)23 RUE MÉDÉRIC, PARIS 17

SURFACE AREA

11,200 m²

RENT ON OFFICES

€590 /m²OCCUPANCY RATE

100%BY ORANGE

Orange Carnot

Wagram

Avenue

Parc Monceau

Arc de Triomphe

FIRM LEASE TERM

2 YEARS

CMD 2019 98

ORANGE CARNOT / REDEVELOPMENT POTENTIAL IN THE CBD (2/2)23 RUE MÉDÉRIC, PARIS 17

2021 / END OF LEASE OF ORANGE

2006 / SALE & LEASEBACK WITH ORANGE

AT 6.6% YIELD

EXTRACTING RENT INCREASE & VALUE CREATION

THROUGH REDEVELOPMENT

€750/m² CURRENT PRIME RENT IN THE AREA

3% CURRENT PRIME YIELD

CMD 2019 99

PARIS STREAMBUILDING / AN INNOVATIVE MIXED-USE PROJECT (1/2)ZAC CLICHY BATIGNOLLES, PARIS 17

Residential | 230,000 m²

Retail & Services | 70,000 m²

Offices | 140,000 m²

Project

STREAMBUILDING

ONE OF THE LARGEST URBAN REGENERATION AREA OF PARIS

WITH AN OBJECTIVE OF NEUTRAL CARBON BALANCE

A mix of offices, retail and

high-end residential

Dir. Paris CBD

THE BATIGNOLLES AREA

CMD 2019 100

PARIS STREAMBUILDING / AN INNOVATIVE MIXED-USE PROJECT (2/2)ZAC CLICHY BATIGNOLLES, PARIS 17

WINNER OF THE “REINVENTER PARIS” COMPETITION FOR URBAN INNOVATIVE PROJECTS

~30% TARGET VALUE CREATION

Hotel (4,600 m²)

Offices (4,800 m²)

& Flex-offices (4,500 m²)

Ground floor retail (1,100 m²)

& event space (900 m²)

Rooftop agriculture

AMBITIOUS GREEN CERTIFICATIONS

SURFACE AREA

15,900 m²

TOTAL COST

€162 mSHARED AT 50%

TARGET RENT

€575 /m²ON OFFICES

YIELD ON COST

4.6%

DELIVERY 2022

CMD 2019 101

PARIS SO POP / REDEVELOPMENT-EXTENSION BETWEEN PARIS & ST-OUEN (1/2) 6 RUE FRUCTIDOR, PARIS 17TH

CMD 2019 101

SO POP

New Paris

courthouse

SURFACE AREA

31,000 m²

TARGET RENT

€420 /m²

TOTAL COST

€226 mSHARED AT 50%1

YIELD ON COST

6.1% AMBITIOUS GREEN CERTIFICATIONS

CMD 2019 102


2018 / DEPARTURE OF CITROËN

2019 / SYNDICATION OF 49.9%WITH CREDIT AGRICOLE ASSURANCES

2012 / ACQUISITIONOF CITROËN HEADQUARTERS AT 8.1% YIELD

2019 / BUILDING PERMIT

WITH A 70% EXTENSION FROM 18,500 m² TO 31,000 m²

2021 / DELIVERY

PARIS SO POP / REDEVELOPMENT-EXTENSION BETWEEN PARIS & ST-OUEN (1/2) 6 RUE FRUCTIDOR, PARIS 17TH

CMD 2019 103

LEVALLOIS ALIS / THREE BUILDINGS FOR A PRIME REDEVELOPMENT (1/2) 35 RUE BAUDIN, LEVALLOIS-PERRET

103

Thais

Delivered in 2016

SURFACE AREA

20,500 m²

TOTAL COST

€215 mSHARED AT 50%

YIELD ON COST

5.0%

TARGET RENT

€530 /m²ON OFFICES

CMD 2019 104

LEVALLOIS ALIS / THREE BUILDINGS FOR A PRIME REDEVELOPMENT (2/2) 35 RUE BAUDIN, LEVALLOIS-PERRET

2019 / BUILDING PERMITWITH A 15% EXTENSION TO 20,500 m²

2000 / ACQUISITION

OF THE FIRST TWO BLOCKS OF 13,000 m²

JAN. 2019 / DEPARTURE OF LAGARDÈRE


2015 / ACQUISITION

OF THE THIRD BLOCK OF 4,700 m² AT 6.4% YIELD

2022 / EXPECTED DELIVERY

CMD 2019 105

THAIS / REDEVELOPMENT OF A FORMER ORANGE BUILDING (1/2) 29 RUE ANATOLE FRANCE, LEVALLOIS-PERRET

SURFACE AREA

5,600 m²

RENT ON OFFICES


100%

Eiffel

Tower

Arc de Triomphe

Porte Maillot

Grand Palais

FIRM LEASE TERM

4 YEARS

THAIS

Louise Michel

CMD 2019 106

THAIS / REDEVELOPMENT OF A FORMER ORANGE BUILDING (2/2) 29 RUE ANATOLE FRANCE, LEVALLOIS-PERRET

2014 / DEPARTURE OF ORANGE

Q2 2017 / DELIVERY

2003 / ACQUISITION OF THE BUILDING

2015-2016 / DEMOLITION & RECONSTRUCTION

81% VALUE CREATION REALISED

CMD 2019 107

MAILLOT / ATTRACTIVE LOCATION AT THE NEW PORTE MAILLOT18 RUE GUSTAVE CHARPENTIER, PARIS 17

SURFACE AREA

9,800 m²

RENT ON OFFICES


100%BY ORANGE

FIRM LEASE TERM

2 YEARS

Orange Maillot

Arc de Triomphe

Palais des congrès

Extension of the

Parodi square

New access road

linking the two

avenues

Charles de Gaulle

avenue

La Grande Armée

avenue

APPENDIX

108CMD 2019

CMD 2019 109

COVIVIO COMMITTED PIPELINE

Synthesis of Committed projectsSurface 1

(m²)

Pre-let

(%)

Total

Budget 2

(€M, 100%)

Total

Budget 2

(€M, Group share)

Target Yield 3Capex to be invested

(€M, Group share)

France Offices 210,720 m² 46% 1,412 1,103 5.8% 531

Italy Offices 94,500 m² 68% 424 424 6.4% 164

German Residential 45,271 m² n.a 171 111 4.7% 102

Hotels in Europe 533 rooms 100% 74 30 6.2% 4

Total 51% 2,080 1,668 6.0% 801

1 Surface at 100% 2 Including land and financial costs

3 Yield on total rents including car parks, restaurants, etc.

CMD 2019 110

FRANCE OFFICES COMMITTED PIPELINE

Committed projects Location ProjectSurface¹

(m²)Delivery

Target rent

(€/m²/year)

Pre-let

(%)

Total

Budget²

(€M, 100%)

Total

Budget ²

(€M, Group

share)

Target Yield³

Capex to be

invested

(€M, Group

share)

Meudon Ducasse Greater Paris Construction 5,100 m² 2020 260 100% 22 22 6.4% 14

Belaïa (50% share) Orly Construction 22,600 m² 2020 198 48% 65 32 >7% 24

IRO Châtillon - Greater Paris Construction 25,600 m² 2020 325 20% 139 139 6.3% 89

Flow Montrouge - Greater Paris Construction 23,500 m² 2020 327 100% 115 115 6.6% 67

Silex II (50% share) Lyon Regeneration-extension 30,900 m² 2020 312 50% 166 83 6.0% 34

Total deliveries 2020 107,700 m² 57% 507 392 6.4% 228

Gobelins Paris 5th Regeneration 4,360 m² 2021 510 100% 50 50 4.3% 20

Montpellier Bâtiment de services Montpellier Construction 6,300 m² 2021 224 8% 21 21 6.7% 15

Montpellier Orange Montpellier Construction 16,500 m² 2021 165 100% 49 49 6.7% 34

Jean Goujon Paris 8th Regeneration 8,460 m² 2021 820 100% 182 182 n.a 36

Paris So Pop (50% share) Paris 17th Regeneration 31,000 m² 2021 > 400 0% 226 113 6.1% 74

N2 (50% share) Paris 17th Construction 15,900 m² 2021 575 0% 162 81 4.6% 65

Levallois Alis Levallois Regeneration 20,500 m² 2022 > 500 0% 215 215 5.0% 59

Total deliveries 2021 and beyond 103,020 m² 40% 905 711 5.3% 303

Total France Offices 210,720 m² 46% 1,412 1,103 5.8% 531

1 Surface at 100% 2 Including land and financial costs

3 Yield on total rents including car parks, restaurants, etc.

CMD 2019 111

FRANCE OFFICES MANAGED PIPELINE

Projects Location TypeSurface

100%

Total Cost

100%

Total Cost

Group share

m² €M €M

Total ~550 000 m² ~€3.3 bn ~€3.2 bn

Provence Paris Redevelopment ~7 500 m²

Anjou Paris Redevelopment ~10 100 m²

Jemmapes Paris Redevelopment ~11 700 m²

Carnot Paris Redevelopment ~11 200 m²

Laborde Paris Redevelopment ~6 200 m²

Bobillot Paris Redevelopment ~3 700 m²

Raspail Paris Redevelopment ~7 100 m²

Keller Paris Redevelopment ~3 400 m²

Voltaire Paris Redevelopment ~10 000 m²

Boulogne Molitor Boulogne - Greater Paris Redevelopment ~4 400 m²

Levallois Pereire Levallois - Greater Paris Redevelopment ~10 000 m²

Rueil Lesseps Rueil - Greater Paris Redevelopment ~40 600 m²

St Ouen Victor Hugo St Ouen - Greater Paris Redevelopment ~44 000 m²

St Denis Pleyel St Denis - Greater Paris Redevelopment ~15 000 m²

Cap 18 Paris Land Banks ~100 000 m²

DS Campus Extension 2023 Velizy - Greater Paris Land Banks ~27 500 m²

New Velizy Extension Velizy - Greater Paris Land Banks ~14 000 m²

Meudon Opale Meudon - Greater Paris Land Banks ~37 000 m²

Montpellier Pompignane Montpellier Land Banks ~80 000 m²

Jardins de l'Ars Bordeaux Land Banks ~19 200 m²

Bordeaux Cité Numérique (land bank) Bordeaux Land Banks ~9 800 m²

Lille Flers Lille Land banck ~22 100 m²

Silex 3 Lyon Land Banks ~5 900 m²

IBIS Part-Dieu land bank Lyon Land Banks ~50 000 m²

Paris

30, avenue Kléber

75116 Paris

Tel.: +33 1 58 97 50 00

CONTACT

Paul ArkwrightTel.: +33 1 58 97 51 85

Mobile: +33 6 77 33 93 58

[email protected]

www.covivio.eu

Hugo SoussanTel.: +33 1 58 97 51 54

Mobile: +33 6 84 44 95 40

[email protected]

france offices · italy offices portfolio / focus on milan €3.9 bn €3.2 bn group share...

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