Annual results 2009: Ghelamco Group confirms sustained growth through investment and construction 2010-03-31
- 2009 net profit of 60,147 KEUR
- Solvency ratio of 55%
- Continuous sustained growth through investment and construction
Ypres, 31 March 2010 – Ghelamco Group, a non-listed European real estate investor and developer, confirmed and strengthened its position in the different markets in which it is active, despite being confronted with an economic downturn and a difficult economic environment.
The Group closed its 2009 accounts with a net profit of 60,147 KEUR (thousands of EUR), largely resulting fromlast year’s significant development efforts. Ghelamco Group’s continuous investment activities have increased balance sheet and equity total to 731,134 KEUR and 404,737 KEUR respectively, bringing its solvency ratio to 55%. Notwithstanding the adverse economic environment, specifically in the real estate market, Ghelamco Group managed to achieve sustained growth through new land acquisitions and continued development and construction efforts, mainly in Belgium and Poland, without impacting on its leverage, which remains at 35%. By maintaining its financial ratios and by consistently reinvesting its profits, the Group is convinced that it will retain its competitive advantage over developers that were forced to significantly reduce their developing activities.
About Ghelamco Group
Ghelamco Group is a leading European real estate investor and developer active in the offices, residential, retail and logistics markets. It maintains a high quality internal control with respect for agreed milestones over all its project development phases: land purchase, planning, coordinating the construction phase and sale or lease. Its projects combine prime and strategic locations with efficient and aesthetically inspiring designs and correct timing. Its successeson the Belgian, Polish, Ukrainian and Russian markets are generated by the group’s professional and enthusiastic staff that is driven by the vision and passion of its management. Ghelamco Group was listed as Belgium’s 55th holding company in the 2010 edition of Trends Top 5,000, a survey of the country’s largest Belgian companies.
| Results | 31.12.2009 | 31.12.2008 |
| Operating result | 68,195 | 258,618 |
| Net result of year | 60,147 | 212,297 |
| Share of the group in the net result of the year | 59,836 | 212,243 |
| Balance sheet | 31.12.2009 | 31.12.2008 |
| Total assets | 731,134 | 589,631 |
| Cash and cash equivalents | 26,916 | 47,846 |
| Net financial debt (-) | 236,110 | 157,629 |
| Total equity | 404,737 | 344,743 |
Note: Comparison with last year’s results is not relevant, due to the changes to the IAS (International Accounting Standard 40 relating to IPUC (Investment Property Under Construction) valuation, anticipatively adopted by the Group in 2008.
1 calculated as follows: bank debts / total assets
Overview by country
Belgium
In Belgium, the Group further diversified and enlarged its portfolio of mixed use developments. It consists mainly of retail, residential and leisure projects in Brussels, Ghent, Kortrijk, Leuven, Knokke and at the Belgian coast side.
Poland
In Poland, Ghelamco Group maintained its existing land bank, that had been enlarged in 2008 with some new strategic plot acquisitions to achieve a perfect spread between Warsaw’s central business district, other valuable in-town locations and the airport area. Notwithstanding the economic downturn, the Group invested in significant efforts to obtain building permits for plots in portfolio. In this respect, a building permit for the Warsaw Spire landmark project (a 220 m high, 100,000 m² office and retail project in Central Warsaw) was received shortly after year-end. In additon, building permits for the Senator project (office project with a rentable area of approx. 25,000 m² in Warsaw) and the Mokotow Nova project (40,000 m² near Warsaw airport) were obtained in the first quarter of 2010. Construction continued at sites in 2009. This mainly refers to Trinity Park III (office project in Warsaw, 33,000 m²), Crown Square (office project in Warsaw, 16,000 m²), Katowice Business Park (office project, 17,000 m²) and Qbik (residential project in Warsaw, 356 apartments).
Other countries
In Ukraine and Russia - countries that suffered more severely from the economic crisis – additional investments were made to further develop the existing portfolio. In Russia, these efforts focused on engineering, utilities and infrastructure. Early in 2009, the Group obtained a building permit for the Dmitrov Logistic Park (North of Moscow) allowing the construction of about 240,000 m² of warehousing. In March 2009, the Group acquired full control over the adjacent Logistic Park Ermolino (300,000 m²). In Ukraine, the Group leased out its Kopylov Logistics Park and invested in the further development of the plots held in portfolio.
Main post balance sheet event
In mid March 2010, Ghelamco Group sold its Trinity Park III upon an attractive bid by an investor for approx. 93,000 KEUR. The building’s construction had been completed inMay 2009.
Outlook
It is the Group’s strategy to further diversify its development portfolio in the countries where it is currently active by spreading its developments over different real estate segments. For 2010, the Group will continue its sustained growth. In addition, it will closelymonitor specific market moves in its active countries and real estate segments.
Ghelamco Group’s main 2010 projects
1.Poland
Crown Square, Warsaw
Unusual solutions to obtain maximum space efficiency and a unique combination of glass, wood and stainless steel are characteristics of this class A office building, Ghelamco Group’s third Crown project in Warsaw’s Wola district. The building offers 16,000 m² of net office space on 13 levels, with three additional underground parking levels. Among the tenants of this sunny facility is Nike. End of construction of Crown Square is scheduled for Q2 of 2010.
Senator, Warsaw
Senator, a modern office building, is located in the heart of the Polish capital, on the former site of the Polish Central Bank. The 25,000 m² class A office building will provide its tenants with a prestigious working environment on six functionally designed levels. Senator’s unique design and eye for detail evoke respect for the past in a contemporary context. Construction will start in the first half of 2010.
Warsaw Spire
Destined to be the Polish capital’s highest office building, the 220 m high Warsaw Spire and its two 55 m high satellite buildings will dominate the city’s skyline. This outstanding office is within walking distance of financial institutions and five star hotels. It offers 100,000 m² of unique and pleasant office and retail space in a spectacularly designed tower in a spacious garden courtyard setting. The balance between functionality and design will turn this building with 3,500 parking bays into Warsaw’s future office benchmark. Construction is scheduled to start at the end of 2010.
Mokotow Nova, Warsaw
Located near Warsaw’s airport, this 40,000 m² class A office building is yet another example of Ghelamco Group’s proven approach of business parks: modern, extended office complexes designed with care for ultimate workplace comfort for future tenants. Mokotow Nova will contain state of the art technical and technological solutions that guarantee efficient use of the available space. Construction will start at the end of 2010.
Qbik
Adapting the loft concept to a modern setting, Qbik breathes fresh air into Warsaw’s residential real estate market. Located in the prime Mokotow district, Qbik consists of 356 residential apartments ranging from 36 to 200 m². The project aims at people who require an inspiring and creative living environment. It is scheduled for completion in 2012.
Katowice Business Point
Strategically located in the centre of the city, KATOWICE BUSINESS POINT offers 17,000 m² of class A office space on 11 levels. Three underground parking levels contain 200 parking bays. The project’s interesting, fully glazed design provides an excellent identity to the facility’s tenants, which include PriceWaterhouseCoopers. KATOWICE BUSINESS POINT is scheduled for completion in Q3 of 2010.
2. Belgium
Leuven
Ghelamco Group is developing three projects at a canal area in Leuven, about 20 km East of Brussels, that is subject to major renovation. Waterview is a mixed projectwith 13,300 m² of offices, 5,345 m² of retail space, 20 apartments and 32,000 m² of public parking. Site Vanderelst offers 4,350 m² of retail space and 12,125 m² of offices. Both projects are scheduled for a construction start in 2010. Waterside is a mixed residential – retail project with 113 apartments and 2,740 m² of retail space. With construction well underway, 60% of the apartments have already been sold.
Wavre Retail Park
In Wavre, 20 km South of Brussels, Ghelamco Group will construct an attractive 18,870 m² retail park with 587 parking bays. The park will accomodate approximately a dozen shops with surfaces ranging from 1,000 to 5,000 m² and should be completed next year.
Leisure Property Invest, Knokke-Heist
At the exclusive coastal resort of Knokke-Heist, Ghelamco will build a 27 holes golf course and a six stars hotel with congress facilities on a 800,000 m² domain. Designed by the renowned Scottish golf course architect Steve Marnoch, it will allow players to choose between three sub courses of nine holes, each with their own character. Located in a green belt, the hotel is ideal not only for golf players, but also for visitors who want to enjoy Knokke’s beach and shopping opportunities.
Oostduinkerke
At the coastal resort of Oostduinkerke, Ghelamco Group is constructing 57 apartments spread over five buildings in the dunes area. This upmarket residential project is scheduled for phased delivery between 2011 and 2014.
3. Ukraine
Warsaw Road, Kiev
Warsaw Road is a unique mixed concept North West of Kiev. It consists of single family housing units, duplexes, apartments and retail space, with an available surface of more than 100,000 m². The project is under development.
4. Russia
Dmitrov Logistics Park
Located 30 km North of Moscow, Dmitrov Logistics Park offers 226,000 m² of built-to-suit warehousing space spread over four class A facilities. Ghelamco Group has a building permit and all utilities (water, gas, electricity) in place. Short-track construction at this site is possible. Dmitrov Logistics Park is on the Betonka ring road, Moscow’s first major ring road.