Corio - Why people buy

Profile

Corio is a closed-end investment institution, listed on Euronext NYSE in Amsterdam and Paris, which is active in five countries: the Netherlands, France, Italy, Spain and Turkey. Corio specialises in (re)developing and operating shopping centres. Corio is a fiscal investment institution (FBI) in Dutch law and has a SIIC status in France.

The operating portfolio is valued at € 5.8 billion (1.6 million m² in 113 projects, of which 95 are shopping centres). Corio is also expanding this portfolio via extension, redevelopment and new-build projects totalling € 2.7 billion (780,000 m² in 40 projects), a large proportion of which consist of extensions of existing centres. When the projects in the pipeline are completed, Corio will ultimately have a portfolio of 129 projects with a gross lettable area of 2.4 million m².

Shopping centres account for 94.6% of the portfolio (operational and pipeline). Much of the pipeline consists of investments in projects that Corio already owns. In selecting investments, Corio focuses on shopping centres that are dominant in their catchment area, because these are the projects that enable Corio, with its local and professional in-house management, to add most value to the portfolio.

Corio’s core activities are investment selection, (re)development, letting and centre management. Through active investing and the right timing of acquisitions and sales, the added value of development, letting and centre management can actually be realised. The quality of a shopping centre, as reflected in the cash flow, is determined by local factors, which is the main reason why Corio has a highly decentralised business model. The local business units Corio has set up in each country are largely responsible for their operating results. The success of our portfolio depends on our local letting managers, centre managers and developers. The business unit management teams communicate with the holding company in Utrecht through annual budgets, investment proposals and quarterly reports. Because we strive to keep our core activities in-house, Corio currently employs 400 people, of whom some 10% are employed at holding company level and the majority is positioned in the business units.

With leverage of 40% and fixed-interest loans accounting for about 65% of its borrowings, Corio finances its operations prudently, to ensure that it is always able to meet its obligations in both the short and the long term. In view of their nature and impact, Corio organises and manages these financing activities centrally.

Source: Annual Report 2008, Chapter Overview & Strategy, page 5 (PDF, 476 kB)

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