Pipeline
Corio Vastgoed Ontwikkeling (CVO) was set up as a wholly-owned subsidiary of Corio Nederland B.V. and began operating in the first quarter of 2008, concentrating on managing Corio’s pipeline in the Netherlands. The formation of CVO stems from the relaxation of the FBI-regulations in respect of development activities, provided those activities take place within a taxed entity and only for the purpose of building up that entity’s own portfolio. The insourcing of (re)development activities is based on the one hand on the trend in the market towards increasing vertical integration between property owners and developers, and on the other on strategic considerations. Combining the (re)development and investment activities makes it possible to respond more effectively to opportunities in the market, allowing the addition of qualitative and quantitative value, thus in turn enabling the risks to be monitored more effectively (see also Strategy). The following projects are currently undergoing (re)development: ‘t Circus in Almere, Cassandraplein in Eindhoven, Middenwaard in Heerhugowaard (in phases), Maaswijk in Spijkenisse, Stadsplein in Spijkenisse and Nesselande in Rotterdam.
Pipeline retail projects in the Netherlands totalled € 939.9 million at year-end 2008 (2007: € 1,134.7 million), including investments of € 127.8 million (2007: € 73.9 million). This consists of € 377.5 million in the fixed pipeline and € 562.4 million in the variable pipeline. 36.5% of the total pipeline is committed; 38.8% could still be deferred and 24.7% could still be cancelled. The Stadsplein/Kolkplein shopping centre project in Spijkenisse was added to the fixed pipeline for an amount of € 36 million in 2008. Corio signed an agreement with Multi Vastgoed in December for the development of the Stadsplein project in Spijkenisse with an area of 11,900 m2 (shops, catering and the Kolkplein supermarket location). Opening is scheduled to take place in 2011. This project is adjacent to the Kopspijker shopping centre in Spijkenisse, which is already owned by Corio. Kopspijker will be renovated by CVO at the same time; the costs of this have also been classified in the fixed pipeline. The costs of most of the projects in the Dutch pipeline are indexed annually as per the contracts.
The Pieter Vreedeplein and Eschmarke projects, in Tilburg and Enschede, respectively, were transferred from the fixed pipeline in 2008 and taken into operation. The reduction in the pipeline is also due to the removal of a number of projects from the variable pipeline which are currently not ready for development or which can be deferred. With a view to Corio’s long-term profitability CVO is continuing to work selectively on these projects. Construction of the De Vredenburg project in Utrecht (part of the Hoog Catharijne project) will begin in 2009, as will the extension of Cityplaza in Nieuwegein and the redevelopment of De Metropole in Almere. The following projects will also be completed and removed from the pipeline in the second half of 2009: ‘t Circus in Almere, Cassandraplein in Eindhoven, De Mare in Alkmaar and Maaswijk in Spijkenisse.
Source: Annual Report 2008, Chapter Review of operations, page 57 (PDF, 2,1 MB)
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