Fonciere des Regions
Encyclopedia
Foncière des Régions is a holding company
of real estate investment (REIT) companies that own residential and commercial properties in 8 countries (mostly Europe). Its business comes from the rental and leasing of properties (including hotels and car lots) over 70% of which is office space in France and Italy (in 2009 vacancy rates were at 5.3% in France, in other major markets like Rome, Italy rental income was lower because office space use was halved). Its biggest clients are major companies the largest of which is France Telecom
which rented half of Fonciere's office space in France (about 1 million m2 (though its share of rental income was 51% in 2009 compared to 60% in 2008). Other major customers are Telecom Italia
and Electricite de France
and IBM
. The company has a 15% interest in France's biggest business park devoper, Altarea SA. Most properties are under its control however there are also about 60 properties that it has a minor stake in (interests in them range from 25 to 38 percent). Widely recognized properties include one of France's tallest skyscrapers Tour Gan
(also known as CB21) and Carré Suffren in Paris.
Other assets include parking lots (Parcs GFR), retirement homes, warehouses (Fonciere Europe Logistique SCA, Fonciere Developpement Logements SA) hotels, medical facilities, and business parks (15% of France's largest developer Altarea SA).
Altogether the company had a market value of between €3.5 and €3.9 billion in 2010.
Most growth happened in the 21st century beginning with key acquisitions and leaseback agreements with EDF, AXA, AGF between 2000 and 2004. In 2000 it acquired housing developer Sovakle. In 2004 the division dealing with hotels, Foncière des Murs was formed.
Fonciere des Regions's largest shareholder is currently italian Delfin (the holding company of Italian billionaire Leonardo Del Vecchio
) with a nearly 30% stake.
In 2010 rental income (€789.6 million consolidated up on the year due to French office acquisitions, of which €521.3 million represented the group share which was down slightly because of a lowered interest in Beni Stabili) came mostly from the offices business segment (totalled 79% 54% in France and 25% in Italy) but also from logistics operations (11%) and the service sector (10%). Total revenues increased only in the service sector (4.4% due to 7% higher Accor income) and Italian offices sector (up 4.3%). Vancancies affected results from the offices business in France.
Divisions (these three are separate publicly traded companies) in order of size are
Foncière Développement Logements controls all of the company's French (in Ile-de-France
) and German (Bavaria, North Rhine-Westphalia, Lower Saxony) residential properties which include apartments and condominiums. SCI Marceau and Triname and Garonor France III are among numerous subsidiaries managed through the division.
Foncière des Murs (25% interest) is a SIIC that provides hospitality services in addition to its function as landlord of hotels and restaurants.
Foncière Europe Logistique is the subsidiary that controls assets relating to Logistics
in France and Germany.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
of real estate investment (REIT) companies that own residential and commercial properties in 8 countries (mostly Europe). Its business comes from the rental and leasing of properties (including hotels and car lots) over 70% of which is office space in France and Italy (in 2009 vacancy rates were at 5.3% in France, in other major markets like Rome, Italy rental income was lower because office space use was halved). Its biggest clients are major companies the largest of which is France Telecom
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
which rented half of Fonciere's office space in France (about 1 million m2 (though its share of rental income was 51% in 2009 compared to 60% in 2008). Other major customers are Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
and Electricite de France
Électricité de France
Électricité de France S.A. is the second largest French utility company. Headquartered in Paris, France, with €65.2 billion in revenues in 2010, EDF operates a diverse portfolio of 120,000+ megawatts of generation capacity in Europe, Latin America, Asia, the Middle East and Africa.EDF is one of...
and IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
. The company has a 15% interest in France's biggest business park devoper, Altarea SA. Most properties are under its control however there are also about 60 properties that it has a minor stake in (interests in them range from 25 to 38 percent). Widely recognized properties include one of France's tallest skyscrapers Tour Gan
Tour Gan
Tour Gan is an office skyscraper located in La Défense, the high-rise business district situated west of Paris, France. It was designed by celebrated American architect Max Abramovitz....
(also known as CB21) and Carré Suffren in Paris.
Other assets include parking lots (Parcs GFR), retirement homes, warehouses (Fonciere Europe Logistique SCA, Fonciere Developpement Logements SA) hotels, medical facilities, and business parks (15% of France's largest developer Altarea SA).
- In August 2010 in a joint venture with France's largest bank Credit Agricole, it acquired 48 European hotels from hospitality company Accor. The deal was worth 367 million euro.
- After acquiring 35% of Italian real estate company Beni Stabili (public on the Milan stock exchange since 1999) from Italian company Delfin (Delfin and Batipart are Fonciere's largest shareholders) it purchased the rest of it in 2007. It was Fonciere's single largest investment in Italy bringing its asset portfolio there to €4 billion.
Altogether the company had a market value of between €3.5 and €3.9 billion in 2010.
History
Fonciere des Regions was created in 1963 as Garages Souterrains de Metz an operator of underground garages/parking lots.Most growth happened in the 21st century beginning with key acquisitions and leaseback agreements with EDF, AXA, AGF between 2000 and 2004. In 2000 it acquired housing developer Sovakle. In 2004 the division dealing with hotels, Foncière des Murs was formed.
Fonciere des Regions's largest shareholder is currently italian Delfin (the holding company of Italian billionaire Leonardo Del Vecchio
Leonardo Del Vecchio
Leonardo Del Vecchio is the founder and chairman of Luxottica, a $3 billion designer and manufacturer of high-quality eyeglass frames. The firm owns the Sunglass Hut and Lenscrafters chains with a total of over 6000 stores...
) with a nearly 30% stake.
Operations
Through subsidiares Fonciere operates in France, Italy, UK, Luxembourg (Batisica, FDR Luxand and 67% ownership of CCP Duisberg and GSS III Partners), Germany (EM), Belgium (NC), USA (73% of Red Sail Real Estate Holding USA Inc. which is based in LA, NYC, and Chicago) and Portugal.In 2010 rental income (€789.6 million consolidated up on the year due to French office acquisitions, of which €521.3 million represented the group share which was down slightly because of a lowered interest in Beni Stabili) came mostly from the offices business segment (totalled 79% 54% in France and 25% in Italy) but also from logistics operations (11%) and the service sector (10%). Total revenues increased only in the service sector (4.4% due to 7% higher Accor income) and Italian offices sector (up 4.3%). Vancancies affected results from the offices business in France.
Divisions (these three are separate publicly traded companies) in order of size are
Foncière Développement Logements controls all of the company's French (in Ile-de-France
Île-de-France (région)
Île-de-France is the wealthiest and most populated of the twenty-two administrative regions of France, composed mostly of the Paris metropolitan area....
) and German (Bavaria, North Rhine-Westphalia, Lower Saxony) residential properties which include apartments and condominiums. SCI Marceau and Triname and Garonor France III are among numerous subsidiaries managed through the division.
Foncière des Murs (25% interest) is a SIIC that provides hospitality services in addition to its function as landlord of hotels and restaurants.
Foncière Europe Logistique is the subsidiary that controls assets relating to Logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
in France and Germany.