PAREF: Over EUR 100 million new investment in 2006. Strong growth in funds under management
The Directors of SIIC PAREF, a real-estate company specialising in property investments and management on behalf of third parties, announce a strong growth in the company's two main business sectors in 2006, with a level of investment in line with guidance announced during the introduction to the stock market at the end of 2005 and a growthof 45% of the capitalisation of the funds (SCPI) managed by its subsidiary Paref Gestion.
INVESTMENTS: over € 100 million committed in 2006
In line with its growth strategy, the many investments made demonstrate the commercial vitality of the PAREF Group. Inclusive of the acquisition offers made at the end of the year, the total committed for the year 2006 amounted to € 104.5 million, and this included:
- 6 acquisitions for € 31 million : 2 mixed properties in rue de Rivoli and rue du Roule (Paris 1) for € 9 million; a clinic in Avenue Parmentier (Paris 11) for € 9.7 million and a former clinic in Gentilly (92) for € 4.7 million ; warehouses in Cauffry (60) for € 2.8 million and Les Ulis (91) for € 4.5 million;
- Acquisitions of usufructs for € 3.3 million : a residential property in Paris for € 1.1 million : shares of SCPI for € 2.2 million;
- Purchase agreements for € 35.2 million: offices in Juvisy (91) for € 3.5 million; business premises in Vaux le Pénil (77) for € 4.9 million, in Rueil-Malmaison (78) for € 3.3 million and in la Courneuve (93) for € 12.5 million, a portfolio of offices and business premises in the Paris region and Toulouse for € 11 million;
- Offers issued for € 35 million : agreements reached at the end of the year with sellers but not yet followed by exchange of contracts.
Including the property acquired in rue Berger ( Paris 1) in December 2005 for € 11.2 million, the commitments correspond to the investment guidance announced by PAREF at the time of its stock market introduction, at the end of 2005.
In conformity with its policy of active management, PAREF also entered into an arbitrage by disposing of a property in Courbevoie for € 8 million. A capital gain of € 5.3 million was recorded at company level.
MANAGEMENT FOR THIRD PARTIES: strong growth in SCPIs managed by Paref Gestion
At the same time as those numerous investments, the management for third parties business also performed very well throughout 2006. This was driven by the strong growth in the SCPIs, although offset modestly by the sale in the second half of the year of assets managed on behalf of Westbrook.
The capitalisation of SCPIs, based on the issue price at 31 December 2006, grew by 45% in one year, thus:
- Pierre 48 (SCPI zero coupon) € 190 million (+45%)
- Novapierre 1 (SCPI for shop premises) € 38 million (+ 46%)
- Interpierre (SCPI for offices) € 3 million (+23%)
Hubert Lévy-Lambert, Chairman of the Management Board stated “ Group Management is pleased with the very favourable developments in 2006 in all operations. The year was marked by strong commercial dynamism in management activities and successful investments. I take this opportunity to thank everyone in our Group as well as all our partners, directors and shareholders for their confidence, support and loyalty.
We will continue our targeted investment policy in 2007 by investing around € 150 million, mainly on business properties, while retaining a debt ratio of 66.7%, with a dividend distribution objective of around 4%”.
Next financial announcement
14 February 2007 : 2006 Sales
PAREF was listed on Eurolist
C of Euronext Paris stock exchange in December 2005
PAREF operates in two complementary areas:
property investment and management on behalf of third parties.
PAREF has elected for SIIC (listed real estate company) status for the 2006 financial year.
A liquidity contract on the company's securities, complying with the new charter of professional ethics drawn up by the AFEI (French Association of Investment Firms) and approved by the AMF (French stock market regulator) on 22 March 2005, was signed with the company Banque Privée Fideuram Wargny.
PAREF shares trade on Eurolist C by Euronext Paris
ISIN code : FR00110263202 - Ticker : PAR
For further information, please visit the PAREF Group website : http://www.paref.comCONTACTS
Chairman of the Board of Management
Tel: +33 (0)140 29 86 86
Tel: +33 (0)1 40 29 86 86
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Tel: +33 (0)1 53 67 36 36
Tel: +33 (0)1 53 67 36 36
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