Gecina
Encyclopedia
Gecina is a residential, office, and healthcare focused real estate investment trust
. Its portfolio of properties also includes shopping malls, warehouses, and logistic centers
responsible for coordinating commercial businesses such as those operating in business parks. Almost all of its business comes from France (in 2009 only 1% of assets were abroad) where it dominates the Paris market (is the largest residential and commercial property owner, France is the 2nd biggest market for real estate in Europe outside of London). Outside of Paris traditionally it has been a large investor in Lyon. As of 2010, Gecina is reducing its interest in some business lines like warehouses because of their limited market growth potential.
The company has the third highest asset value among European REITs, largest French SIIC by market cap and 2nd largest publicly traded property company in France (next to Fonciere des Regions
and Icade
). 88% of business comes from only 2 of 5 business segments (offices and residential) and in March 2010 it had a market cap of $6.6 billion. For the 2010 fiscal year 83% of rental revenue came from the Paris region (47% from the city core), 15% from elsewhere in France (40% of that from Lyon) and 2% from abroad. Leading revenue generating assets were offices (54%) followed by residential structures (30%). Healthcare (8%), logistics (5%) and hotels (2%) contributed a combined 15%.
, Royal Dutch Shell
and small retailers) of office space (58% of revenue), residential (30% of revenue), logistics business lines, hotels and healthcare facilities (12% of revenue combined). The logistics business which markets itself as Gecilog added 122,900 square meters of property in Paris to its control in 2006. Business relating to healthcare is under the control of subsidiary Gecimed.
At the end of 2009 the company's main shareholders (held 68.48% of Gecina) were Metrovacesa
with 27% (the biggest real estate investment company in Spain before debt problems led to its reorganization in 2009, controlled Gecina as recently as 2007 with over a 60% interest), former CEO M.Rivero, M. Soler and Predica which is the insurance division of Credit Agricole
.
L'Angle - 11,000 m2 of office space, Ouest Park Sable sur Sarthe - 135,000m2 logistics business park, Club Med Val d'Isere - Village Resort, Private Hospital of the Estuary Le Havre Havre - Hospital with 356 beds, Champs-Élysées - Large office and retail building in Paris, Le Vivaldi - High end residential building, Khapa - multi use building, Trapèze Ouest complex - offices in the Trapèze Ouest area of Paris partnered with Hines Group which developed about two thirds of the 90,000 m2 of space.
Real estate investment trust
A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...
. Its portfolio of properties also includes shopping malls, warehouses, and logistic centers
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...
responsible for coordinating commercial businesses such as those operating in business parks. Almost all of its business comes from France (in 2009 only 1% of assets were abroad) where it dominates the Paris market (is the largest residential and commercial property owner, France is the 2nd biggest market for real estate in Europe outside of London). Outside of Paris traditionally it has been a large investor in Lyon. As of 2010, Gecina is reducing its interest in some business lines like warehouses because of their limited market growth potential.
The company has the third highest asset value among European REITs, largest French SIIC by market cap and 2nd largest publicly traded property company in France (next to Fonciere des Regions
Fonciere des Regions
Foncière des Régions is a holding company of real estate investment companies that own residential and commercial properties in 8 countries...
and Icade
Icade
Icade SA is a multinational investment company that is also a leader in property development services. It invests in various types of properties including both public and private...
). 88% of business comes from only 2 of 5 business segments (offices and residential) and in March 2010 it had a market cap of $6.6 billion. For the 2010 fiscal year 83% of rental revenue came from the Paris region (47% from the city core), 15% from elsewhere in France (40% of that from Lyon) and 2% from abroad. Leading revenue generating assets were offices (54%) followed by residential structures (30%). Healthcare (8%), logistics (5%) and hotels (2%) contributed a combined 15%.
History
Gecina was founded in 1959 as Groupement pour le Financement de la Constructionan, an SII (French term for a special type of real estate investment company that only invests in residential properties) focused on promoting housing development in Paris. SII was a relatively new concept invented by the French government in order to help companies interested in creating real estate but put off by French housing laws (laws that were meant to keep rent prices affordable). Lenient buildings codes (generous in terms of height restrictions) helped the company grow in the 1960s until new restrictions were introduced in the late 1970s. The 1990s were bittersweet, although the company faced increased competition and recessionary effects on the housing market, it made key acquisitions beginning with Groupement Français pour l'Investissement Immobilier in 1991, Foncina in 1997 and then Union Immobilier de France and La Foncière Vendôme (last two combined were about the same size as GFC before the acquisitions). In 1993 a change in focus to commercial properties forced it to relinquish its status as an SII (and the benefits that came with it).- In 2002 Gecina acquired real estate company Simco for 2.2 billion euro doubling its residential division.
- One of Gecina's biggest moves happened in late 2007 when it sold 37 properties worth 1.931 billion euro worth of assets to another company, Medea which was 96% controlled by Metrovacesa's largest shareholder. The decision was an attempt by Gecina to separate itself from MetrovacesaMetrovacesaMetrovacesa S.A. is a major Spanish property company, headquartered in Madrid, which was the largest publicly-traded real estate developer in the Eurozone prior to the June 2007 creation of Unibail-Rodamco...
, the company that controlled it from 2005 to 2007. Metrovacesa's 2005 $7.4 billion investment in Gecina gave it control of the company at the time (over 60% interest).
Business
Most revenue comes the renting (apartments) and leasing (agreements made with tenants that include both large companies PepsiCoPepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
, Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
and small retailers) of office space (58% of revenue), residential (30% of revenue), logistics business lines, hotels and healthcare facilities (12% of revenue combined). The logistics business which markets itself as Gecilog added 122,900 square meters of property in Paris to its control in 2006. Business relating to healthcare is under the control of subsidiary Gecimed.
At the end of 2009 the company's main shareholders (held 68.48% of Gecina) were Metrovacesa
Metrovacesa
Metrovacesa S.A. is a major Spanish property company, headquartered in Madrid, which was the largest publicly-traded real estate developer in the Eurozone prior to the June 2007 creation of Unibail-Rodamco...
with 27% (the biggest real estate investment company in Spain before debt problems led to its reorganization in 2009, controlled Gecina as recently as 2007 with over a 60% interest), former CEO M.Rivero, M. Soler and Predica which is the insurance division of Credit Agricole
Crédit Agricole
Crédit Agricole S.A. is the largest retail banking group in France, second largest in Europe and the eighth largest in the world by Tier 1 capital according to The Banker magazine. It is also part of the CAC 40 stock market index....
.
Properties in France
Here are some structures associated with Gecina. Some are part of its portfolio others were developed by the company.L'Angle - 11,000 m2 of office space, Ouest Park Sable sur Sarthe - 135,000m2 logistics business park, Club Med Val d'Isere - Village Resort, Private Hospital of the Estuary Le Havre Havre - Hospital with 356 beds, Champs-Élysées - Large office and retail building in Paris, Le Vivaldi - High end residential building, Khapa - multi use building, Trapèze Ouest complex - offices in the Trapèze Ouest area of Paris partnered with Hines Group which developed about two thirds of the 90,000 m2 of space.