Annual Report • Mar 15, 2021
Annual Report
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ANNUAL REPORT 2020
As experts in highly complex real estate projects in major European cities, we create attractive architectural environments that meet clients' expectations and the needs of today and tomorrow. With more than 150 years of experience, we dare to take a position, we have the agility to invest and the drive to improve living and working environments.
Create high-quality, future-proof urban environments with a positive impact on the way people live, work and play.
Reinvent living and working environments to help communities live well and sustainably.
EUR 650 mio STOCK MARKET VALUE
85 PROJECTS UNDER DEVELOPMENT
1,600,000 m2 UNDER DEVELOPMENT
EUR 5.1 bio GROSS DEVELOPMENT VALUE
72% RESIDENTIAL PROJECTS IN PORTFOLIO
200 M / F TALENT
TRUST
Trust is the cornerstone of our business, and of our company's story that started in 1863. Every day, we put our dedication and expertise to work for clients, investors, citizens and partners. Every day, we aim to be worthy of their trust.
We are used to working with many different stakeholders, as well as improvising in ever-changing circumstances. Without ever compromising on quality or the key aspects of responsible development, we design real estate projects that meet the most exacting standards of construction and urban renewal.
We love what we do! It is the driving force for our team of dedicated people, and it fuels our constant desire for improvement and our solutions-oriented approach. It also creates a lively work atmosphere where all colleagues can give the best of themselves and contribute real added value to our projects.
04 MESSAGE FROM THE EXECUTIVE CHAIRMAN
2020 was the year of COVID-19, a virus that firmly held the whole world in its grip and shook entire generations to their very core, causing substantial human and economic damage. The pandemic will go down in history as one of the most striking events of the past century, alongside the great wars, social and political upheavals and several financial crises.
Fortunately, crises also offer opportunities. The medical sector made incredible technological progress, spurred on by the urgency of the situation. Thanks to more intensive use of technology, society scaled up working from home, meeting and learning online in no time at all - a general trend that will continue this decade, and that will be accompanied by improvements in productivity and quality of life.
COVID-19 had an impact on our company's financial results, at a time when we are also dealing with a challenging regulatory environment. Revenues ended up at EUR 375.4 million, EBITDA at EUR 52.8 million and net group profit share at EUR 33.3 million or EUR 3.58 per share. We are however continuing our dividend policy consistently, committing to a dividend of EUR 2.77 per share for 2020.
We took positive steps in terms of crisis resilience and extension of our financial support base. In recent years, Immobel has made significant efforts to increase awareness among a wider institutional investment public, with a view to developing our investment management activity. This new activity was launched in 2020, with the establishment of the Immobel BeLux Office Development Fund. Together with institutional and qualified investors, we want to invest in real estate development projects in major European cities. This offers added value for the various parties, as well as for the cities that benefit from this combination of financial strength and real estate expertise. Real estate continues to be an established value, which offers many possibilities for Immobel and for participating partners.
Despite the economically unstable situation, our company succeeded in raising capital in excess of EUR 58 million through the sale of 900,000 private shares. The proceeds have been used to finance projects in Belgium, France and Luxembourg. This and the stable evolution of our share price in 2020 are indicators of confidence from private and institutional investors.
The evolution of the real estate sector revealed a diverse picture in 2020. Retail properties were already under pressure due to the surge in online purchases over the past few years, and this trend has been exacerbated by the pandemic. Leisure real estate is experiencing temporary difficulties but will undoubtedly pick up once the health crisis is under control. Logistics, residential property, data centres and medical-related real estate are on the rise. The office market is undergoing a transformation. Because people have started working more at home and are unlikely to return fully to the old model, this requires
a new approach where the workplace is tailored to the wishes of employees who can work healthily and efficiently at home and in the office, with the necessary technological support.
For our company, it was a year of stress tests and finger-on-the-pulse management, with the market and our cost items under particular scrutiny, even more than usual. Business as usual took on a new meaning: due to the temporary sclerosis of the economy and society, our sales slowed down and permit procedures were delayed. This was noticeable everywhere, and all the more so in France: municipal elections brought procedures to a standstill, and they were subsequently postponed again as a result of the impact of the health crisis. At the end of 2020, we had pending permit procedures for 4,500 apartments and houses for the Group as a whole, the development of a large share of which will start in 2021.
This substantial pipeline will serve as an important catalyst for growth in the coming years.
"Because people have started working more at home and are unlikely to return fully to the old model, this requires a new approach where the workplace is tailored to the wishes of employees who can work healthily and efficiently at home and in the office, with the necessary technological support."
However, we did obtain permits for, among others, the office project Commerce 46 in the European district in Brussels, for which we also signed a strategic lease agreement with ING, and for Montrouge, an important office project in Paris along the Périphérique ring road.
We were able to make future-oriented acquisitions in several countries. In Brussels, together with our partners we won the NMBS / SNCB South Station project, and bought 50% of the shares of the Multi office tower block. We ended the year by purchasing Total's head office in Brussels, which is proposed as a seed asset for the Immobel BeLux Office Development Fund. In Germany, we obtained a privileged position for purchasing a second project, this time in Berlin. In Luxembourg, we opted for the purchase of a large-scale cradle to cradle project.
We are proud of the prestigious MIPIM award for Granary Island in Gdansk, an acknowledgement of our expertise in the regeneration of large-scale urban complexes.
In 2020, ESG was also afforded a much more prominent place on the agenda. Well-being and sustainability already served as a benchmark for the quali-
"Well-being and sustainability already served as a benchmark for the quality of projects, and this was reinforced by the 2020 health crisis. Citizens, governments, investors and other stakeholders are calling for the responsible design of cities."
ty of projects, and this was reinforced by the 2020 health crisis. Citizens, governments, investors and other stakeholders are calling for the responsible design of cities: more green space, "soft" mobility, renewable energy, renovation and the reuse of materials where possible.
We also want to adopt a pertinent position in this regard. It is the only way to remain relevant, and to play our role in society. To contribute to sustainable cities and communities with a better quality of life, where natural resources are used wisely, we prepared a plan with four specific objectives that are linked to the United Nations Sustainable Development Goals. You can read more on this subject in this annual report.
This year's extraordinary circumstances also gave us a good opportunity to reflect for a moment on the way in which we have evolved as a company. After all, the Immobel in 2020 looks very different from the Immobel at the time of the merger with Allfin, 4 years before. We held discussions on how we want to continue to grow and position ourselves in the near future. We also used this opportunity to ask a number of external stakeholders (customers, journalists, shareholders, institutional investors and government employees) for their opinions about our company, and conducted interviews and workshops (most via video calls) in the various layers of the company and countries in which we operate. This journey led to a modernisation of our positioning and visual identity.
2020 was a year we will never forget. Taking into account the unusual circumstances, we really cannot be dissatisfied; together with our management and thanks to the flexibility and unbridled commitment of the 200 plus people who work for Immobel, we have weathered the crisis well, and have prepared for the future. We are extremely grateful for the trust placed in us by all our stakeholders, which we strive to earn over and over again every day to make a significant contribution to more sustainable cities and communities.
Marnix Galle, Executive Chairman
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Net result, Group's share | 52.5 | 11.0 | 56.8 | 102.4 | 33.3 |
| Equity, Group's share | 311.0 | 303.6 | 344.6 | 426.2 | 491.9 |
| Market capitalization (including own shares) |
530.0 | 551.8 | 503.9 | 663.8 | 681.8 |
| Market capitalization (excluded own shares) |
464.7 | 484.2 | 442.4 | 583.3 | 655.0 |
| 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| 8,767 | 8,772 | 8,777 | 8,785 | 9,605 |
| 6.0 | 1.3 | 6.5 | 11.7 | 3.6 |
| 35.5 | 34.6 | 39.3 | 48.5 | 51.2 |
| 2.00 | 2.20 | 2.42 | 2.66 | 2.77 |
| 1.40 | 1.54 | 1.69 | 1.86 | 1.90 |
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Stock price on 31 December (EUR) | 53.0 | 55.2 | 50.4 | 66.4 | 68.2 |
| Maximum quotation (EUR) | 53.8 | 59.7 | 57.0 | 69.0 | 81.8 |
| Minimum quotation (EUR) | 38.2 | 51.0 | 47.0 | 50.2 | 56.2 |
| Stock price / book value | 149.4% | 159.5% | 128.4% | 136.9% | 133.2% |
| Gross return for 1 year1 | 25.3% | 9.8% | -4.8% | 36.5% | 6.7% |
| Gross ordinary dividend / last stock price | 3.8% | 4.0% | 4.8% | 4.0% | 4.1% |
| Net ordinary dividend / last stock price | 2.6% | 2.8% | 3.4% | 2.8% | 2.8% |
| 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
| Operating income | 298.6 | 149.0 | 326.1 | 419.5 | 375.4 |
| Operating expenses | -238.7 | -127.1 | -261.0 | -327.2 | -333.5 |
| Share in the results of associates | 7.7 | 3.4 | 5.2 | 24.6 | 8.1 |
| Operating result | 67.7 | 25.3 | 70.3 | 117.0 | 50.0 |
| Financial result | -3.9 | -4.8 | -4.8 | -5.3 | -7.3 |
| Result before taxes | 63.8 | 20.5 | 65.5 | 111.6 | 42.7 |
| Income taxes | -10.2 | -9.6 | -8.6 | -9.4 | -8.7 |
| Result for the year | 53.6 | 10.9 | 56.9 | 102.2 | 34.0 |
| Share of Immobel | 52.5 | 11.0 | 56.8 | 102.4 | 33.3 |
| Financial position | |||||
| ASSETS | 2016 | 2017 | 2018 | 2019 | 2020 |
| Non-current assets | 88.3 | 66.2 | 181.7 | 213.3 | 448.3 |
| Intangible assets | 0.1 | 0.4 | 0.4 | 0.5 | 0.6 |
| Goodwill | 0.0 | 0.0 | 0.0 | 43.8 | 43.8 |
| Tangible assets | 0.9 | 1.0 | 0.9 | 1.0 | 1.4 |
| Right-of-use assets | 0.0 | 0.0 | 0.0 | 6.4 | 4.4 |
| Investment property | 2.9 | 3.0 | 104.3 | 81.1 | 197.1 |
| Financial assets | 70.2 | 50.7 | 70.6 | 65.4 | 182.8 |
| Other | 14.2 | 11.0 | 5.4 | 15.0 | 18.2 |
| Current assets | 627.9 | 734.1 | 784.7 | 1,087.9 | 982.8 |
| Inventories | 443.1 | 518.5 | 511.8 | 694.6 | 683.1 |
| Cash | 120.6 | 147.9 | 170.9 | 156.1 | 148.1 |
| Other | 64.1 | 67.6 | 102.0 | 237.2 | 151.6 |
| TOTAL ASSETS | 716.2 | 800.2 | 966.4 | 1,301.2 | 1,431.1 |
| EQUITY AND LIABILITIES | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Equity | 314.9 | 303.6 | 344.7 | 428.2 | 494.5 |
| Non-current liabilities | 286.7 | 338.8 | 332.9 | 523.4 | 609.6 |
| Financial debts | 281.6 | 330.1 | 322.0 | 507.0 | 571.1 |
| Other | 5.1 | 8.7 | 10.8 | 16.4 | 38.5 |
| Current liabilities | 114.6 | 157.8 | 288.7 | 349.7 | 327.0 |
| Financial debts | 40.5 | 68.8 | 193.7 | 200.1 | 180.8 |
| Other | 74.1 | 89.0 | 95.0 | 149.6 | 146.2 |
| TOTAL EQUITY AND LIABILITIES | 716.2 | 800.2 | 966.4 | 1,301.2 | 1,431.1 |
EUR 494.5 mio EQUITY
ANNUAL REPORT 2020 - 9
Immobel aspires to a dividend increase of up to 10% every year, subject to the absence of any unforeseen exceptional events. For the 2020 financial year, the board of directors of Immobel is confirming an increase of 4% in the dividend at EUR 2.77 per share.
Shareholders since 07/01/2021 (%)
In accordance with article 29 of the Law of 2 May 2007 on the disclosure of stakes held in issuers whose shares are admitted to trading on a regulated market, Immobel has been informed by the following shareholders that they hold the shares mentioned below:
| Shareholders | Number of shares |
% of total shares |
|---|---|---|
| A³ Capital NV/SA (and a related company), having its registered seat at 1020 Brussels, avenue des Trembles 2 |
5,892,418 | 58.94% |
| Immobel NV/SA having its registered seat at 1000 Brussels, rue de la Régence 58 |
30,348 | 0.30% |
| Free float | - | 40.76% |
| Total of known shareholders | 5,922,766 | 59.24 % |
| Publication of 2020 annual accounts | 4 March 2021 | |
|---|---|---|
| Annual General Meeting 2021 | 15 April 2021 | |
| Publication of 2021 half-year results | 9 September 2021 | |
| Publication of 2021 annual accounts | 10 March 2022 | |
| Annual General Meeting 2022 | 21 April 2022 | FOR MORE information: |
18.7% AVERAGE ROE OVER THE PAST 3 YEARS
2.77 EUR / SHARE OF GROSS DIVIDEND
68.20 EUR / SHARE (PRICE ON 31/12/2020)
Construction is the sector with the largest ecological footprint. As a developer, we are aware of the difference we can make by adopting more sustainable development and building methods.
In recent years, sustainability has become ever more important, and COVID-19 has revealed how much we depend on nature. People are demanding a higher-quality living and working environment, one that offers them a high degree of comfort and promotes a healthy lifestyle. The pandemic has also shown that cities need open and green space, as well as walking and cycling infrastructure. An increasing number of stakeholders, especially governments and investors, are asking us about what we do to create more sustainable cities.
We are constantly looking for ways to contribute to a world that offers a better quality of life. In 2020, we worked on a plan to improve our sustainability performance. It contains four objectives that are linked to the United Nations Sustainable Development Goals. The idea behind it is to help design sustainable cities and communities that offer a better quality of life, where natural resources are used wisely.
We design our buildings to improve the health and quality of life of those who live and work there. Our plans incorporate public space around the buildings. We also commit to targeted action to increase biodiversity and to design cities that are more ecological.
We reduce our ecological footprint through mindful water and energy consumption, and by reducing CO2. We will work with independent sustainability experts to identify the greenhouse gases in our value chain and are developing an ambitious reduction plan. We will also launch programmes, objectives and partnerships to adopt an optimal circular approach. This includes reusing resources and materials to extend their life cycle.
As one of the major players in the real estate sector in Europe, our aim is to play a leading role in the transformation towards the sustainable cities and communities of tomorrow and promote the trend towards sustainability in our sector. We want to contribute to the urban mix, promote the local economy and encourage soft mobility. We plan to establish partnerships with organizations, think tanks, governments, changemakers and other stakeholders, to create a more sustainable society together. Through the Immobel Social Fund, we focus our commitment on organizations and associations that work on health, culture and social inclusion.
We want to make a sustainable reflex an integral part of our projects and of all layers of our organization. The plan is to enter into partnerships with start-ups or incubators to translate new urban trends into innovative solutions and services. We promote a healthy and innovative working atmosphere in which employees feel good.
In 2021, we will further translate our ambitions into specific, measurable objectives monitored using a KPI dashboard.
We will also organize the related governance: a sustainability committee will be responsible for developing the strategy and objectives, and roadmaps for the teams.
Finally, we are pursuing an ambitious certification strategy for our entire project portfolio. The Group will assess its portfolio as a whole against the GRESB1 benchmark in 2021. BREEAM2 and HQE3 continue to be important references.
Highly conscious of the fact that a building becomes part of the city for a very long time, we are committed to making our projects pleasant places to live. 2020 has shown us, more than ever, what matters for the future: the need to live in a healthy and comfortable environment, to have access to nature and to protect the environment. These concerns are reflected in all our projects and they illustrate the desire of all our teams to build urban spaces in which residents enjoy the highest possible quality of life. Well-designed, transport-connected facilities, with innovative services and more environmentallyfriendly structures.
In the following pages, we highlight the Group's defining features, illustrated by particular initiatives that show how we view, in specific terms, our role as a real estate developer.
Immobel's experts consider projects in their entirety, carefully selecting the best locations.
Our ambition for the cities of tomorrow: to transform abandoned areas into vibrant, liveable neighbourhoods.
Building in a more sustainable and environmentally-friendly manner is our priority for the well-being of our residents and of future generations.
The comfort and well-being of residents and users of our buildings are at the heart of our everyday priorities.
For the Group, a holistic approach to design means considering projects in their entirety, paying attention to their location, their connections to transport, as well as all the criteria that can encourage soft mobility. It also means innovating to create synergies and commencing co-creation even before the design phases, such as the Immpulse approach initiated by our Parisian team.
Keen to offer innovative solutions with real added value for the residents of its buildings, Immobel is focusing, in particular, on solving mobility-related issues. Its collaboration with MyMove, a D'Ieteren initiative, is an example of this, applied to a very urban project: Royal Louise.
"Eventually, we plan to incorporate smart mobility solutions as from the design phase of our projects."
MyMove has created an easy-to-use smartphone application that enables a diverse fleet of vehicles to be shared within a community. "The concept already existed for companies and we decided to develop it for residential projects. In the underground parking garage of the Royal Louise building, we will install scooters, electric bicycles and cars. All users of the building will be offered access to the application," explains Nicolas Deremince, Developer and Innovation Manager at Immobel. "For the user, it offers an on-site mobility service that's easy, hassle-free and cheaper than the cost of maintaining a vehicle."
The objective of the operation: to join forces with a partner with significant expertise in order to create a flexible service catering to the needs of residents. "We will use this pilot scheme to study the behaviour and actual needs of users. We will build a community of testers who will help us understand their expectations in terms of types of vehicles, modes of use, budget, etc.," continues Nicolas Deremince. "Eventually, we plan to incorporate smart mobility solutions as from the design phase of our projects."
In keeping with the Group's vision for its mixed and urban projects, the aim of this partnership is to position itself as a link in the urban mobility chain, incorporating other services such as longterm vehicle rental or public transport. "We want to participate in the development of this chain and act in a virtuous manner at our level by creating a positive new dynamic in the buildings in which people live. We believe that this type of response will help to improve the problem of traffic congestion in cities, by offering a practical, convenient solution in the places where people live."
Immobel France intends to improve the way of working to encourage an integrated approach. With Immpulse, it is developing a design thinking methodology in the service of office projects. More agility for higher-quality
projects!
Based on the premise that the development processes for office projects could be improved to better cater to user expectations, Immobel France uses a co-creation approach. "We wanted to create a methodology by bringing together, from the start of the project, all the people who have something to contribute to it. To move from a prescriptive to a more collaborative process," explains Julien Michel, Managing Director of Immobel France Tertiaire. "For Immpulse, this means bringing together, for a few days and in an immersive manner, both internal - developer, technical services person, marketing manager - and external stakeholders - brokers, landscape architect, services manager, communications agency. We may also invite a historian, a sociologist, a representative of the municipality concerned, etc."
Different profiles that contribute in a constructive manner to the development of the project and that, in a few days, allow for a programme sheet, a veritable roadmap for the project, to be produced, which is then sent to the project manager. There are several benefits to this approach. "The first positive aspect is a human one: by involving everyone, we create a very seamless mindset in the team. Everyone witnesses the entire design cycle and understands its challenges. This lack of segmentation creates a desire to understand each other and an urge to work on developing an excellent project," Julien Michel adds. Then, as a consequence of this mindset, the projects are transformed. More ambitious, they are more in line with user expectations. By assessing their needs much earlier, we can adapt the services, the sizing and the surface areas of meeting rooms. This translates into considerable time savings for the design and into financial savings for the project."
Already tested on the Saint-Antoine and Montrouge projects, the methodology has won over the organizers and participants. "For Saint-Antoine, our first project involving the conversion of a car park, in the Marais district, the involvement of a historian and a marketer enabled us to realize the benefit in retaining the route in the car park. We therefore opted to retain the structure - we even transformed the ramps into terraces - a more sustainable solution that maintains the character of this unique location," Julien continues. "For the Montrouge project, the co-creation process led us to make the project's outdoor spaces accessible to the residents of the neighbourhood, who will enjoy access to a suspended garden. Immpulse solutions that were found thanks to our willingness to innovate and encourage our creativity."
"Different profiles contribute in a constructive manner to the development of the project and allow for a programme sheet."
Julien Michel, Managing Director Immobel France Tertiaire
"We wanted to create a methodology by bringing together, from the start of the project, all the people who have something to contribute to it. To move from a prescriptive to a more collaborative process."
By transforming abandoned areas into living, work and leisure spaces, Immobel is taking steps to repair the urban fabric of major European cities. The Group is also not afraid to envisage a different future for certain iconic buildings, or to export its skills to other European countries.
Highly anticipated, due to its location and the iconic appearance of its 1970s era building, the Centre Monnaie project provides for the conversion of the current office building located above "The Mint" shopping centre.
The redevelopment should provide greater diversity of use and ensure a 24 / 7 function in order to contribute to bringing more life to the neighbourhood in the evenings and weekends, after the centre's shops have closed. In addition to the residential programme, the building will be redesigned to house a 250-room hotel, an 86-unit apartment hotel, 43,903 m² of office space, several bars (including on the rooftop) and restaurants and a suspended garden on the roof of the plinth and extensive accessibility more generally throughout the building.
Gwen Vreven, Developer for Immobel
"With the new Centre Monnaie, our major ambition is to do things in a sustainable way: we have inherited a truly iconic building, known to all Brussels residents, that we wish to renovate in a circular way, retaining as much of the structure and reusing as many of the materials as possible, while respecting its silhouette.
This is a highly complex project that offers us the opportunity to work on a building that, while historically enjoying high levels of connectivity to transport and access roads, was rather closed to the public, especially on the upper floors. Our work therefore consists of rethinking the relationship between the human scale and the monumental scale of the building, while also revising its structure and functions. Building on great connectivity. We have chosen the Snøhetta and Binst Architects team for their know-how in terms of greener architecture and for their ability to open the building to the public. The quality of their architectural design, particularly for the façades and the community garden, allows us to inject oxygen and life into the new building and the city."
© Bjørnar Øvrebø
"We couldn't pass up on such a project because it brings together everything we love and try to achieve through our architecture: the environmental aspect, the creation of more interactivity with users, the development of a diversity of functions. The renovation of an existing building in the centre of Brussels, its legacy and its volume, its imposing size and the possibility of making it an active building were a huge challenge. The developer's ambition is what attracted us. We are committed to instilling a slightly more emotional aspect, making it a vibrant focal and assembly point for current and future generations.
We examined how the public could enter the building, cross through it, go upstairs within it. It communicates with the city, not only at street level but also inside and through the outside spaces. This structure feeds into interactions and the way in which residents and users will take ownership of the building. When you can get close to something, you also take ownership of it emotionally. It is this intimacy that we are trying to bring about with this project.
Sustainability is also an important part of our thinking. Of course, the best materials are those that are already present in the building. For the new façade materials, we made a conscious choice, based on their capacity to last and their potential for reuse. With user comfort in mind, we opted for a certain degree of transparency and simplicity, combined with metal elements, which gives balance to the façades. More than just a Scandinavian style, we prefer the term 'reductionism', i.e. the art of abandoning what has become unnecessary. It's not a style, it's a solution."
CENTRE MONNAIE
CONSTRUCTION PERIOD: Q3 2022 / Q2 2025 ARCHITECTS: Snøhetta & Binst Architects TOTAL SURFACE AREA: 62,121 m² FEATURES: - 1 hotel with bars and restaurants accessible to the public - 715 bicycle parking spaces - Public promenade
Immobel has real expertise in investing in urban wastelands and turning them into vibrant, people-filled, comfortable living spaces. Three of the Group's projects in particular provide illustrations of this know-how.
The best of both worlds is the idea behind this project, which is located in a verdant setting and also benefits from close proximity to the urban centre. On a former industrial site, composed of abandoned buildings and warehouses, Immobel is injecting new life into an existing neighbourhood in the lower part of Luxembourg city, a 10-minute walk from the lift leading to the city centre. With the aim of conserving part of its historical heritage, the Group is showcasing certain buildings, for example by transforming warehouses into lofts and completely decontaminating the site, in advance of developing apartment residences, as well as triplex or fourplex units. A wide variety of housing types with more than 200 units in total.
Aurélie Frédureau, Developer for Immobel Luxembourg, explains the project's advantages: "In order to provide a real quality of life, we have planned high-quality, private outdoor spaces for the majority of housing units. Two office buildings for professionals also enhance the vibrancy of the project, by adding diversity. The site will also be open to the rest of the neighbourhood thanks to the creation of a cycle path that will offer a shortcut to the surrounding forest or to the city centre. Real everyday comfort thanks to a verdant setting in the heart of the city!"
Aurélie Frédureau, Developer for Immobel Luxembourg
"In order to provide a real quality of life, we have planned high-quality, private outdoor spaces for the majority of housing units."
"The programme is particularly focused on the needs of the neighbourhood, most notably in terms of retail premises, with pedestrianized public areas accessible to local residents."
This sustainable redevelopment promises to turn a highly industrial area of former retail premises and production buildings into a new, open and lively neighbourhood. Immobel and its partner have decided to pool their expertise to turn this abandoned wasteland into a vibrant block at the head of the Biestebroek basin. In addition to housing, the aim of the project is to create an economic centre and inject more diversity into the community. More than 500 housing units will be spread across buildings of varying scales, supplemented by offices, a crèche as well as shops and an interior garden.
"The programme is particularly focused on the needs of the neighbourhood, most notably in terms of retail premises, with pedestrianized public areas accessible to local residents. A large square will be able to accommodate urban markets and events," explains Rob Ragoen, developer of the project. "It consists of a genuine repurposing of the area into a neighbourhood accessible to residents, an active destination intended to open onto the banks of the Canal and restore residents' access to the water."
Within the joint development zone of the "Fort d'Aubervilliers" eco-neighbourhood, a former fortification in Paris, built in the late 1930s and having undergone many changes of use, the project provides for the transformation of a 36-hectare urban wasteland into a mixed neighbourhood, open to the city and respectful of the site's assets. Immobel is contributing to this redevelopment, which will showcase the contemporary architecture.
"The transformation of this urban wasteland will create a neighbourhood where human and plant life will coexist and interact," says Mathieu Chamard-Sablier, Director of Real Estate Operations Immobel France. "By locating new public facilities within innovative projects and creating new housing units of varying sizes, we will maintain the historic social mix of this neighbourhood while revitalizing the urban fabric. The abundance and positioning of the public spaces will be key to showcasing the Fort as the centrepiece of the site."
Before the construction phases of its projects, Immobel regularly offers spaces on its sites to support cultural or charitable initiatives, by allowing actors to take advantage of unoccupied spaces while waiting for construction to begin. For example, in Brussels, the Group helped with the setting up of a summer bar within the site of the Key West project. Another example: the Lebeau buildings were also made available to the cast and crew filming a series for the broadcaster RTBF, which was able to use it as a backstage area while shooting in the Sablon neighbourhood.
Immobel is not afraid to export its know-how to new markets. In Spain, for example, in a highly competitive environment and geographical area, the Group makes use of local expertise for a large "resort" project in partnership with Four Seasons Hotels & Resorts.
On the seafront and close to the old town of Marbella, Immobel and Fort Partners are developing a new 78,000 m² luxury hotel complex. The project includes a 5-star Four Seasons hotel, as well as more than 200 villas, townhouses offering beautiful amenities and other high-end homes designed by American architect Richard Meier.
"The hotel and residential buildings will be built and operated according to the most environmentallyresponsible standards possible, particularly in terms of the use of water, the planting of Mediterranean species in green areas and the limited use of pesticides. In addition, this project will create more than 350 direct jobs in the region."
Javier Reviriego, General Manager Immobel Spain
In addition to aligning its role as developer with the United Nations' Sustainable Development Goals (see page 12), Immobel is stepping up its efforts to build more sustainably, with an awareness of its role in promoting future approaches: focusing on the circular economy by opting to retain existing structures whenever possible, because, as architects and developers tell us, "the best material is the one that already exists". Investing in clean technologies such as geothermal energy to offer fossil-free solutions and greater comfort for users at a fair price. Employing the expertise of landscape architects to add "greenery", biodiversity and even nature-related emotions to the hardscape of our cities.
Looking for fossil-free solutions, Immobel is working with talented technical partners such as geothermal specialist Jeroen Rabaey, CEO of Noven, to develop new energy approaches in its projects
"Geothermal energy enables a transition from a conventional system - where fuel is burned to produce heat, for example - to a more sustainable system, where an effort is made to avoid use of energy from fossil fuels. The most promising way of harnessing this energy at present is to use either an air source or water source heat pump. Since soil temperature is not influenced by the outside temperature, the water allows us to obtain a much more stable temperature than air. Heating efficiency is therefore much better than with other alternative sources, and without use of polluting fuel.
The uses of this sustainable and 'clean' technology depend notably on the type of project and its requirements and complexity as well as geological conditions. For example, we consider different systems depending on whether it involves a new building or a renovation."
"For the Lebeau project in Brussels, we decided to deploy a geothermal solution combined with underfloor heating in the apartments. This technology enabled us to incorporate sustainability by reducing carbon emissions by 50% while providing greater comfort in the apartments.
For the Brouck'R project, we are using a closed-loop geothermal energy system: the water in the subsoil is then used as a kind of giant thermal battery.
Finally, Centre Monnaie involves the renovation of an existing building for which we plan to use solar panels. In addition, we are employing all technologies to reduce energy loss."
"With the growth in passive building and the effect of global warming, better home insulation is increasingly leading to risks of overheating in apartments during the summer season. The passive cooling techniques made possible by geothermal energy are therefore a real boon that are improving issues of thermal comfort. With a cooler floor, the temperature of the room can be reduced by 2 to 3 degrees, which is not insignificant! The savings for the residents in terms of heating costs should also be highlighted: less energy means lower bills.
We believe that the market is ready to develop these new techniques and we want to help developers such as Immobel to incorporate these solutions in their projects. Geothermal solutions require a significant financial investment and, while we take on the complexity of implementation, we are very selective about who we work with. This is why we choose partners who fully share our vision of wanting to build for the future, sustainably."
"Our aim is that residents do not suspect the complexity of the solutions implemented and enjoy clean energy at a competitive price."
Jeroen Rabaey, CEO Noven
The role of landscape architects is crucial in developments. Anne-Marie Sauvat, founder of the Atelier EOLE landscape architecture firm, explains her ambition: to design understated and diversified plantscapes to turn the soil of our cities into a veritable factory of biodiversity.
"We work with the complexity of living elements and design 'urban nature' environments."
founder of the Atelier EOLE
"Our role is to preserve what is already there and provide real environmental added value. In doing so, we improve the living environment of residents."
"As part of a programme such as Lebeau or Universalis Park in the heart of Brussels, our role is to preserve what is already there and provide real environmental added value. In doing so, we improve the living environment of residents. You can't have one without the other: the link between nature and well-being is now proven and is obvious to everyone since the health crisis. Our criteria for choosing plants are based on scientific knowledge, linked to natural environments and soils, interaction with light, the presence of water and the typology of the spaces, with different uses. We work with the complexity of living elements and design 'urban nature' environments. With the right plant pairings, we imagine smaller but denser viable arrangements, thinking ahead to how they will develop in 5, 10, 15 years and more and in all seasons."
"This project near Sablon concentrates a multitude of objectives in a small space: a garden that really works, reasonable maintenance, and layouts to anticipate the future of the city with all its excesses: lack of water, high population density, extreme weather, etc. We are developing an urban clearing, within a brand new, densely-planted garden created from the previously fully-hardscaped rear courtyard. From now on, we will be able to free up more than 1,500 m² and provide residents with a teeming intimate space, inspired by what can be found on the forest floor. We are also trying to limit the amount of hardscaping, using architecture and roofs as platforms for biodiversity. All of the roofs in Lebeau are planted, even if not accessible. These can be used to create protected living environments and thereby offer areas of refuge for insects, birds, etc."
"For me, creating layouts that will inspire delight and play, especially in children, is of great importance. For the residents of the building, when they pass through the block, to go to school for example, something has to happen! We want to evoke sensations, to rekindle emotions and memories of nature in them. Instilling this lesson when a person is still young will lead to adults who are respectful and conscious of the value of nature."
"This project near ULB-VUB university is on a different scale in terms of territory, with a site covering more than 6 hectares. Like the link in a living landscape, our designs must connect the plot to the nature around the project. We are thinking on a territorial scale: the Sonian Forest, the Bois de Halle, etc. What we are interested in is re-establishing the tangle and reinforcement of the environments (border, grassy fringe), which creates great diversity. Ultimately, we are always looking for solutions based on nature."
An excellent example of a project incorporating extensive planting in an urban environment, the Bussy-Saint-Georges development, close to Paris, is situated in a medium-sized town. A neighbourhood where you can live the good life between countryside and city, right on the edge of a top-quality golf course. For this project, Immobel France has opted to develop the programme as a visual and botanical extension of the golf course. The development offers a mix of housing types - apartment buildings, a few villas with high-end services, serviced apartments for the elderly - and the highest architectural quality. The key feature of the project is its favouring of pedestrianization. With the exception of ten or so parking spaces at the entrance to the apartment complex, no vehicles are visible in the development. The programme focuses on greenery, with tall trees, a decision taken in cooperation with a landscape architect specializing in agroforestry. The project has also been very well received by the municipality and local residents due to its integration within the local landscape.
Multi, the new name for the former Philips Tower, - owned by Immobel and its partner envisages the renovation of a single-use office building. It is an ambitious programme with significant added value for the public and occupants. It is also a renovation that ticks many virtuous boxes: circularity, re-use and mobility. Christine Conix of CONIX RDBM Architects, explains the challenges.
The transformation of this modernist tower aims to convert a single-use office building into a programme with added value for the public. The complex will serve as a catalyst for pedestrianization and connectivity for the surrounding public spaces. It will change from an imposing black box into a transparent welcoming complex. This building was, at the time, designed at odds with the urban fabric, with no regard for existing buildings and without any consideration for local residents, as part of the Manhattan project.
This is why, with my partners Jorden Goossenaerts and Frederik Jacobs, we have oriented the project towards repairing this fabric and we have opted for circularity and for the potential conversion of the building. We want to achieve a very high-performance urban project. To ensure a socially-relevant approach and to respond to the urgency of this urban challenge, we have put together a team capable of tackling this iconic project from several angles: transparency of dialogue, architectural and urban design, mobility, striving for sustainability (BREEAM in particular) and finally aiming to achieve the optimal reuse of materials.
With regard to reuse, we considered things on the basis of presumptions of material availability and usability. Reuse is tied up with "time". This requires a completely new attitude on the part of the designer: looking for design possibilities, based on decisions taken in the past. In this way, the bluestone from the existing façade is being used to rebuild the façade overlooking Rue de Laeken and 1,300 metres of the building's existing aluminium structures for the balustrades and lighting in the atrium.
We have oriented the project towards achieving greater openness. We deliberately selected a limited range of materials, the aim being to create a refined, no-frills ensemble. For the façade, we opted for unpolished, structured aluminium to provide more depth and relief. The building is aiming for lightness. This is the reason for the decision to devote a large surface area to windows for maximum penetration of natural light and so that the building absorbs its environment, rather than being a mirrored box. Multi must attract attention due to its simplicity.
In addition to remediation, the Multi project aims to set the tone with regard to re-use. It aims to set a precedent for the use of this type of material in a large service building: 89% of existing materials are being retained in the redevelopment since the building is not being demolished. And at least 2% of the recycled materials used in the project are sourced from "urban mining", from off-site construction sites. This might seem like a small figure but it is actually a really significant challenge in the case of a project of this size. To our knowledge, this would be the highest ever achieved in Brussels.
To properly highlight the overall image of sustainability, the building is on track for a BREEAM Excellent certificate. We are therefore certain that all aspects of sustainability are being addressed, from the earliest phase of design to use of the building. Multi is one of the winners of "Be.Exemplary 2017", an approach that has earned us a passionate following and ensures partner buy-in.
The development of the Multi project will guarantee a high-quality extension of the central boulevards area. It will transform this barrier into a link. As an "Urban Platform" and "Urban Connector", the plinth, with its large windows and urban garden open to the public, will form a strong link between the various surrounding neighbourhoods and pedestrians. The pavement will be widened, the entrance and exit of the car park will disappear from the public space, the bus passage will be removed, creating a new urban square near Rue de Laeken. For this, we are working very closely with the city and the teams from BMA-Maître Architecte. The space near Boulevard Anspach is being designed as a public interior space. By bringing the atmosphere, arrangement of materials and functions from the exterior into the interior, we are looking to create an urban interior, to blur the boundary between inside and outside. A large atrium will be developed in the space. This will create a visual and spatial link between pedestrians and the new public platform located above the plinth.
"The complex will change from an imposing black box into a transparent welcoming complex."
"At least 2% of the recycled materials used in the project are sourced from 'urban mining'."
Comfort and well-being, as we have very clearly understood given the current health context, are essential to daily life, particularly in urban areas. Thanks to the support of our specialist design and development teams, buyers of our residential programmes can personalise their property. Office complexes are designed in accordance with the highest standards of well-being and ergonomics, as well as with an eye on transformability, in order to adapt to future changes in work practices.
This is one of the Group's strengths: in most of its locations, a specialist interior design team assists its residential customers and responds to their expectations in order to customize the layouts of their future home. In this way, it creates an interior that is beautiful, functional and efficient at the same time.
The teams dedicated to assisting buyers are tasked with supporting residential customers who purchase their apartment off the plans. The level of quality offered by Immobel allows for customization of layouts, bathrooms, kitchens and finishes. "The team gets involved upstream and throughout the construction process," explains Valentine Van Malleghem, in charge of the department in Belgium. "We modify and optimize the plans taking into account what customers want. We address their concerns and offer suggestions in order to obtain a fully customizable product, that is as perfect as possible," continues Virginie Brodka, Residential Project Advisory in Luxembourg. "Building can be a stressful stage for buyers with no experience of construction. Our customers therefore see us as someone they can trust."
Valentine Van Malleghem, Head of Residential Project Advisory in Belgium
"The team gets involved upstream and throughout the construction process. We modify and optimize the plans taking into account what customers want."
Immobel's Customer Services teams have had to adapt to the COVID-19 crisis in order to ensure compliance with the rules and protective measures during site visits, as well as to manage the extension of construction and material delivery dates. Finally, these departments have been able to assist future buyers in optimizing floor plans, in order, for example, to include spaces for home offices within housing units.
The French team has created a digital configurator for buyers in the new Montévrain and Aubervilliers projects. This innovative 3D technology is used for new properties and enables Immobel customers to access a digital pathway focused on their needs as users: a dedicated area where customers can interact with the Immobel teams, where they can access all their signed documents, contact information for their preferred sales agent and customer account manager, but also a virtual tour of the property and a photo report on their property under construction. "In addition to the 3D tour of the property, future buyers can make some of the most requested changes to the decoration: change the colours of the walls and / or floors, transform the shower into a bathtub, open up the kitchen, etc.," explains Philippe Martinho, Residential Sales Director Immobel France. "After viewing the selected options, the customer then receives an electronic quote, which is saved in the online folder, along with a budget and a schedule. All he or she then has to do is approve the proposal and move on to the purchase phase and the administrative stages, in a seamless process. It's the very first tool of its kind in the real estate sector!" Finally, the service is extended via an application that provides the customer with a space where they can keep the essential documents for their appliances (boiler, warranty period, after-sales service, etc.). For the sales teams, it is also a great tool for reporting and assessing the buyer's experience.
For offices like in other sectors, Immobel applies high standards and aims for high-quality finishes.
The keywords of Immobel's approach: brightness, accessibility, quality of life and work. Locations are carefully selected, with the Group positioned in the best in the market. It adapts to new forms of work, such as smart working, by being as flexible as possible in the design of spaces and by employing internationally recognized architects known for their discerning proposals. By endeavouring to encourage close cooperation with the authorities, Immobel also, where possible, establishes a dialogue with the end customer upstream, to ensure a result that is suited to their vision for the urban development of neighbourhoods. Immobel is also increasingly favouring sustainable and circular renovations. In Brussels, this is the case for the Multi tower, on Place De Brouckère, as well as the future conversion of Total's headquarters, on Rue de la Loi. A major transformation project with high ambitions in terms of circularity and sustainability. Other examples include, in France, the Saint-Antoine project, which is retaining the structure of a former Paris car park.
COMMERCE 46 SURFACE: 13,550 m2 LOCATION: Brussels European quarter USE: Offices ARCHITECTS: Office KGDVS and Jaspers-Eyers
Adrien Puylaert, Developer for Immobel COMMERCE 46, COMFORT
Heat pumps and solar panels
ENERGY PERFORMANCE - Low overall consumption
OPTIMAL QUALITY OF WORK - 2.7 m high floor-to-ceiling glass
"We signed a lease with ING for this entire Brussels building before the start of the project. It offers a great opportunity to involve the customer in the design and to adapt the project to its current and future needs within the framework of the planning permission secured. Our design also provides for a ground floor that can be more easily adapted to future uses. This transformability is one of the cornerstones of sustainability that we are applying to the project.
We are studying different types of layout and are ensuring that they are achievable in terms of hallways, the symmetry of the façades, lifts, emergency exits etc. Private or open space offices, we are imagining the two extremes and all options in between. Everything is designed to accommodate employees in an optimal configuration."
Within the Group, developers are mindful of residents' new well-being requirements, particularly in light of the current pandemic. They are therefore increasingly focusing on specific services, oriented towards slow living and the introduction of more plant life and fulfilling activities in the city.
The new Brussels complex will offer numerous leisure opportunities with its public esplanade on the banks of the canal and a rooftop vegetable garden on top of one of its buildings. A space will also be provided for various production activities and other workshops.
The project, which encompasses three office buildings, also originally came with an additional plot which the Immobel France teams chose to leave as low density. They instead opted to transform it into a space for urban agriculture for users of the building. Allotments that are open to guests, such as surrounding schools, where occasional activities, get-togethers, a visit by a food truck, etc. can be organized.
Located in Luxembourg, this project combines easy living with urban vibrancy. Designed for active young people and families alike, River Place offers a village feel in an authentic setting on the banks of the River Alzette. The project offers an immediate connection to the city centre, thanks to the nearby train station, and is innovating with the creation of gardens and shared spaces. It is also supporting diversity with a range of traditional apartments and co-living units.
The Immobel Social Fund reserves 1% of its net profits1 for supporting organisations and associations operating predominantly in the areas of health, culture and social inclusion.
The Fund was set up as a result of the stark realisation that, despite the best efforts of schools to level the playing field in the Brussels Region, individual success and well-being are still too often dependent on social background or postcode. For some young people from deprived neighbourhoods, dropping out of school is a real danger and can have catastrophic consequences for their future, their family and society as a whole. By making a financial contribution to professional organisations working in the area of education in the widest sense of the word, the Immobel Fund aims to give young people from vulnerable backgrounds the opportunity to reintegrate into society and gain access to the job market. The aim of the support provided is to help the beneficiaries to discover their talents and build up self-confidence so that they can flourish in society.
Besides its commitment to sustainable development, Immobel has designed a programme of philanthropic initiatives which it has made a key focus of its expansion strategy and identity. The Fund's purpose is to provide financial support to professional associations and organisations working in the following three areas:
Immobel is committed to medical research and provides financial support to Bordet and Saint-Luc hospitals and Télévie in particular.
The Group makes a contribution to the development of associations which are involved in the dissemination, protection and promotion of every aspect of the arts as well as in heritage conservation. This is why Immobel supports the Queen Elisabeth Music Chapel and the European Quarter Fund, among others.
Immobel promotes and provides financial support for positive initiatives by Brussels professional associations which help young people from vulnerable backgrounds to discover their talents, regain their self-confidence and surpass themselves so that they become responsible members of society.
This Foundation funds high-level clinical research and team training in leading centres in Brussels and abroad. Immobel's contributions have enabled a pneumology clinical research project to be supported.
Keen to assist researchers in their fight against cancer, "Les Amis" - the friends - support their work relating to studying the tumour environment, the understanding of metastatic disease and the potential of liquid biopsies.
Organised by broadcaster RTL on behalf of the National Fund for Scientific Research (FRS-FNRS), Télévie aims to raise funds to fund scientific research into cancer in children and adults.
This non-profit foundation promotes young people, music and Belgian heritage by giving talented young artists the opportunity to improve their skills in a unique setting through a bespoke programme.
Immobel is a member of the European Quarter Fund, managed by the King Baudouin Foundation. The Fund was created in 2001 to improve the image, redevelopment and operation of the European quarter. In 2020, the European Quarter Fund completed preparations for the early 2021 opening of "Stam‑ Europa", as part of the temporary occupation of a building. This venue will play host to a democratic process focused on public debate and innovation. It will be partly dedicated to experimenting with new methods of interaction and exchange between European institutions and European citizens and between the European Quarter and the residents of Brussels.
The Fund has also carried out studies and created prototypes to make the neighbourhood more pleasant for cyclists. Finally, the Fund has initiated a debate on the impact of the COVID crisis on the European Quarter.
Aimed at young people in their final years of primary and secondary school in Saint-Josse, the City of Brussels, Schaerbeek and Anderlecht, Calame promotes school support as a means of addressing inequalities and opening up new horizons.
Part of the school curriculum of Saint-Pierre school in Anderlecht, the "ENVOL" project harnesses artistic activity to facilitate school learning, creativity and living together. Weekly music, storytelling and performing arts workshops are provided from the first year of pre-school to 6th class in primary school, by professional artists hired by the non-profit association.
This non-profit association is a learning network to empower and integrate socially vulnerable young people and those around them. TADA coaches more than 1,300 young people in Brussels through its weekend schools and alumni network. Immobel's support is allocated to the Molenbeek weekend school.
This association is concerned with social inclusion and provides professional assistance to young people looking for opportunities. Each young person (approximately 1,000 per year) receives intensive training and monitoring and is linked up with job vacancies. Training is provided by certified Youth-Start trainers, motivated business coaches with a wealth of knowledge who know how to win the trust of young people. The central theme of this programme is the development of an entrepreneurial spirit and a passion for work.
The Children's University of the Université Libre de Bruxelles conducts child-level academic research in grades 5 and 6 in Brussels. The support will enable children to familiarise themselves with the university from an early age and participate in workshops with committed researchers who wish to share their love of science. The VUB Children's University wants to connect children with science and research at an early stage of their educational career to lower the threshold for higher education.
… as well as the Amis du Cercle Gaulois, the Belgian Embassy in Luxembourg (sponsorship) and the King Baudouin Foundation.
The business in Belgium certainly took place under challenging conditions this year. However, despite the exceptional circumstances, strong teamwork and proactivity allowed for a number of highlights.
At the beginning of 2020, we sold and delivered the Möbius I building in the North neighbourhood of Brussels to Allianz Benelux, which became the company's new head office.
Shortly after that, together with our partners we won the mixed-use project for the refurbishment of the area around the Brussels Midi train station and the new headquarters of the Belgian national railway company. This project aims to contribute to the thorough transformation of the area, offering a mix of functions such as shops, offices, residential units, a hotel and public spaces.
In March, we acquired 50% of the shares of Brouckère Tower Invest SA, owner of the Multi office tower in Brussels. Also in springtime, we entered into a strategic agreement with ING and concluded a 9-year lease contract for Commerce 46, a new BREEAM Excellent office building in the European quarter in Brussels.
COVID-19 impacted our sales rhythm from March until May as well as activities on construction sites, and in addition delayed permitting processes, but also generated additional major sales as from June both on the coast in Belgium and in suburban areas.
We received the green light from the consultation committee to move ahead with Key West, a project to transform a former industrial area next to the Canal in Brussels. For Brouck'R, another project for which we hope to receive the necessary permit in 2021, we sold 130 student units and signed a longterm lease of a 154-room hotel.
The landbanking department diversified and restructured its activities towards the development of housing projects in peri-urban areas. This new positioning led to its new name, "Immobel Home".
In November, we sold a senior living residence in the Vaartkom project in Leuven to a company managed by Swiss Life Asset Management.
And finally, just before the end-of-year break, we acquired buildings and grounds in Brussels from the French group Total as part of an ambitious redevelopment project that will apply the principle of circularity. The redevelopment of the head office was proposed as a seed asset to the newly created Immobel BeLux Office Development Fund.
(m2)
Name Surface
| 706,000 m2 | |
|---|---|
TOTAL BELGIAN PORTFOLIO (EXCLUDING LANDBANKING)
8,520 RESIDENTIAL UNITS2
290 ha LANDBANKING STOCK
| NMBS / SNCB | 200,000 | Brussels | Mixed-use Q1 2023 / Q2 2034 | 40% | |
|---|---|---|---|---|---|
| Universalis Park 3 | 100,000 | Brussels | Mixed-use Q4 2025 / Q4 2030 | 50% | |
| Cours Saint-Michel | 84,200 | Brussels | Mixed-use Q1 2023 / Q1 2026 | 50% | |
| Centre Monnaie | 62,121 | Brussels | Mixed-use Q3 2022 / Q2 2025 | 50% | |
| Key West | 61,300 | Brussels | Mixed-use Q2 2021 / Q1 2028 | 50% | |
| Möbius | 60,000 | Brussels | Offices | Mobius I: Q4 2017 / Q1 2020 Mobius II: Q2 2019 / Q2 2021 |
100% Mobius I 50% Mobius II |
| Panorama | 58,100 | Brussels | Mixed-use Q3 2021 / Q1 2027 | 40% | |
| Multi | 45,755 | Brussels | Offices | Q1 2019 / Q1 2022 | 50% |
| Lebeau | 42,100 | Brussels | Mixed-use Q1 2022 / Q1 2025 | 100% | |
| Brouck'R | 41,000 | Brussels | Mixed-use Q4 2021 / Q1 2025 | 50% | |
| Theodore | 40,000 | Brussels | Mixed-use Q3 2021 / Q3 2025 | 50% | |
| O'Sea (phase 3) | 33,600 | Ostend | Residential Q2 2022 / Q1 2027 | 100% | |
| Wonen aan het groen | 32,847 | Tielt | Residential Q3 2022 / Q4 2024 | 100% | |
| Ilôt Saint-Roch | 31,500 | Nivelles | Residential Q3 2021 / Q3 2023 | 100% | |
| Ernest (phase 2) | 26,600 | Brussels | Mixed-use Q3 2017 / Q3 2020 | 50% | |
| Total | 26,000 | Brussels | Offices | Q4 2022 / Q4 2024 | 100% |
| O'Sea (phase 2) | 24,000 | Ostend | Mixed-use Q3 2019 / Q4 2022 | 100% | |
| Lalys | 23,400 | Astene | Residential Q3 2020 / Q2 2024 | 100% | |
| Cala | 20,098 | Liège | Offices | Q3 2018 / Q4 2020 | 30% |
| Plateau d'Erpent | 19,297 | Erpent | Residential Q2 2018 / Q4 2022 | 50% | |
| Commerce 46 | 13,550 | Brussels | Offices | Q2 2020 / Q3 2022 | 100% |
| Parc Seny | 13,200 | Brussels | Residential Q4 2017 / Q1 2020 | 100% | |
| Domaine du Fort | 12,739 | Barchon | Residential Q3 2020 / Q2 2025 | 100% | |
| The Woods | 9,861 | Hoeilaart | Offices | Q4 2020 / Q1 2021 | 100% |
| Les Cinq Sapins | 8,800 | Wavre | Residential Q1 2019 / Q1 2026 | 100% | |
| Royal Louise | 8,000 | Brussels | Residential Q4 2017 / Q1 2021 | 100% | |
| Greenhill Park | 6,440 | Brussels | Residential Q3 2017 / Q2 2020 | 100% | |
| Crown | 5,500 | Knokke | Residential Q2 2020 / Q4 2022 | 50% |
Slachthuissite 240,000 Antwerp Residential Q3 2021 / 2030+ 30%
Location Use Building period Immobel
share
account the share of Immobel in the respective projects.
| As was the case for other real estate de velopers in France, 2020 was a challenging |
Name | Surface (m2) |
Location | Use | Building period |
Immobel share |
|---|---|---|---|---|---|---|
| year for us, due to delays caused not only by COVID-19 but also by the slowdown of the |
Rueil-Malmaison | 28,500 | Rueil Malmaison |
Mixed-use Q3 2022 / Q4 2024 |
100% | |
| administrations resulting from the municipal elections and the ensuing postponement. |
Aubervilliers Fort Ilot A |
18,084 | Aubervilliers | Residential Q2 2021 / Q1 2024 |
50% | |
| In 2020, following the acquisition of Nafilyan & Partners, the company changed its name |
Le Domaine de Montlhéry |
17,167 | Monthléry | Residential Q4 2016 / Q1 2019 |
100% | |
| to Immobel France. Since the takeover, the teams have been working on a number of |
Les Terrasses de la Marne |
13,041 | Vaires-sur Marne |
Residential Q4 2017 / Q4 2020 |
50% | |
| initiatives to support and embrace their new brand. We have established new organization |
Golf | 12,995 | Bussy-Saint Georges |
Residential Q4 2021 / Q4 2023 |
100% | |
| al processes, optimized and merged existing ways of working (e.g. between the office and |
17 / 27 rue Chateaubriand |
12,570 | Savigny-sur Orge |
Residential Q4 2021 / Q4 2023 |
100% | |
| residential business lines) and installed a new | Créteil | 10,665 | Créteil | Residential 2022 / 2024 | 26% | |
| management team to support the realization of the business plan. |
Esprit Ville | 9,686 | Chelles | Residential Q3 2018 / Q3 2021 |
100% | |
| We received several building permits for large | Paris 14 / Montrouge |
9,010 | Paris | Offices | Q4 2021 / Q2 2023 |
100% |
| office projects: Saint-Antoine in the Le Marais quarter of Paris, a renovation of a former |
Ch des Poutils / Route D'Orléans |
8,851 | Monthléry | Residential TBD | 100% | |
| parking garage into a modern office, and Mon trouge, a multi-storey office project on the Pa |
Aubervilliers Fort Ilot B |
8,561 | Aubervilliers | Residential Q4 2021 / Q4 2023 |
50% | |
| risian périphérique ring road. Immobel France also received the first construction permit for |
Esprit Verde | 6,949 | Bessancourt | Residential Q1 2020 / Q4 2022 |
50% | |
| the joint development zone of Aubervilliers Fort for 280 apartments. |
Les Notes Florales | 6,181 | Combs-La-Ville Residential Q4 2017 / | Q4 2020 | 60% | |
| In autumn, we digitalized the administrative process with customers, for a more efficient |
Le Conti | 6,090 | Le Plessis Trevise |
Residential Q3 2018 / Q2 2021 |
100% | |
| exchange and signature of contracts. We also | L'Aquila | 5,879 | La Garenne Colombes |
Residential Q2 2019 / Q2 2022 |
100% | |
| developed a digital tool (configurator) enabling customers to choose their interior design ele |
Les Terrasses du Canal |
5,824 | Aubervilliers | Residential Q4 2018 / Q2 2021 |
50% | |
| ments. Its launch is planned in 2021. | Saint-Antoine | 5,713 | Paris | Mixed-use Q3 2021 / Q2 2023 |
100% | |
| 223,000 m2 | Buttes Chaumont / Crimée |
5,420 | Paris | Mixed-use Q4 2021 / Q4 2023 |
100% | |
| TOTAL FRENCH PORTFOLIO | Angle JJ Rousseau - Tivoli |
5,390 | Houilles | Residential TBD | 50% | |
| Cœur Village | 5,229 | Saint-Arnoult en-Yvelines |
Residential Q2 2017 / Q3 2020 |
100% | ||
| 5,701 | Le Clos Mazarine | 5,193 | Paris | Residential Q2 2021 / Q2 2023 |
100% | |
| RESIDENTIAL UNITS1 | Les Jardins d'Elisabeth |
4,952 | Aubergenville | Residential Q3 2019 / Q4 2021 |
100% | |
| Richelieu | 4,839 | Richelieu | Offices | Q3 2022 / Q3 2024 |
10% | |
| 44,000 m2 | Horizon Nature | 4,806 | Montévrain | Residential Q3 2021 / Q2 2023 |
100% | |
| OFFICES | Le Fleurilege | 4,685 | Croissy-sur Seine |
Residential Q4 2018 / Q2 2021 |
46% | |
| 1. The totality of the residential units, not taking into account the share of Immobel in the respective |
Hélios | 4,664 | Drancy | Residential Q1 2019 / Q4 2021 |
100% |
| Name | Surface (m2) |
Location | Use | Building period |
Immobel share |
|---|---|---|---|---|---|
| Othis | 4,414 | Othis | Residential TBD | 100% | |
| Les Terrasses de l'Orge |
3,849 | Epinay-Sur Orge |
Residential Q3 2020 / Q2 2022 |
50% | |
| Villa Hurteaux | 3,638 | Franconville | Residential Q4 2017 / Q1 2020 |
90% | |
| Le Belair | 3,402 | Bezons | Residential Q3 2018 / Q1 2021 |
100% | |
| Villa Colomba | 3,264 | Charenton-le Pont |
Residential Q2 2018 / Q1 2022 |
51% | |
| Romainville | 2,975 | Romainville | Residential TBD | 100% | |
| 32 rue Saint Léger | 2,968 | Saint-Germain en-Laye |
Residential Q1 2021 / Q1 2023 |
100% | |
| Les Terrasses de Montmagny |
2,879 | Montmagny | Residential Q2 2019 / Q2 2022 |
100% | |
| 11 rue du Murget | 2,772 | Bougival | Residential Q1 2022 / Q1 2024 |
100% | |
| Villa du Petit Bois | 2,712 | Eaubonne | Residential Q3 2020 / Q2 2022 |
100% | |
| Bella Sylva | 2,511 | Bois d'Arcy | Residential Q1 2018 / Q1 2020 |
100% | |
| Le Wilson | 2,039 | Romainville | Residential Q4 2017 / Q1 2020 |
100% | |
| Cœur Saint Ambroise |
1,674 | Paris | Mixed-use Q2 2018 / Q4 2020 |
100% | |
| Carré Royal | 1,323 | Saint-Germain en-Laye |
Residential Q4 2017 / Q1 2020 |
100% | |
| Cœur Meudon | 1,263 | Meudon | Residential Q3 2018 / Q4 2020 |
100% |
See detailed project sheets on http://immobelgroup.com/en/real-estate-projects
2020 saw office investment of EUR 18.274 billion in France.
Source: CBRE, as per 31 December, 2020.
Despite the fact that COVID-19 also more than made its mark on the Luxembourg organization, Immobel Luxembourg was able to add a number of interesting acquisitions to the pipeline in 2020, thus investing in the future.
In May, we obtained exclusivity for a new +/- 23,000 m² cradle to cradle project in a premium location in Luxembourg. The following month, we acquired a project in Rue du Canal in the city of Esch-sur-Alzette, a +/- 6,000 m² listed building which we will partially renovate, expand and redevelop into 73 residential units and +/- 300 m² of services. We also finalized the acquisition of the River Place project in Dommeldange, a +/- 8,000 m² mixed-use project aimed to create co-living units.
In the summer, we signed in a 50 / 50 partnership an agreement under conditions precedent for the sale of 100% of the shares of two companies owning several plots of land located in the Schoettermarial district of Luxembourg Kirchberg with a view to developing a residential project of approximately 22,500 m².
Finally, in October, our team signed an agreement for the acquisition of 100% of the shares of a company owning a building named Scorpio, a +/- 3,700 m² core location office building in Gasperich with the aim of refurbishing it in full.
Furthermore, we made great progress on our ongoing projects. Polvermillen's pollution removal works were completed. Infinity Living, our first residential tower, is almost ready to be delivered to the 165 residents. We also prepared everything for kicking off our centrally located project Nova on Place de l'Etoile. The old office premises will be entirely transformed into a modern office building.
See detailed project sheets on 1. Source: CBRE, as per 31 December, 2020. http://immobelgroup.com/en/real-estate-projects
| share |
|---|
| 100% |
| 100% |
| 100% |
| 70% |
| 50% |
| 100% |
| 33% |
| 33% |
| 100% |
| 33% |
| 100% |
| 100% |
| 100% |
| 100% |
| 100% |
1,826 RESIDENTIAL UNITS2
(INCLUDING 263 FOR EDEN)
30,120 m2 OFFICES
12,800 m2 RETAIL PREMISES
Compared to other countries where we carry out projects, the impact of COVID-19 on construction works and sales activities was fairly limited in Poland.
We completed the first of two phases of our Granary Island project in Gdansk, a typical example of Immobel's expertise when it comes to city centre redynamization. The mixed project including over 700 residential units, a food court, a retail space and two hotels was recognized by winning the prestigious MIPIM award in the Best Urban Project category. The jury praised the project's contribution to offering better livelihoods, improving social inclusion, increasing economic growth and inventing the city of tomorrow where humans will be at the centre of everything.
Regarding phase 2 of Granary Island, of which we started the building works in 2020, Immobel Poland has sold around 160 apartments.
The construction of the 21-storey office tower Central Point in Warsaw is on track. In 2020, we signed the first lease contracts. Around the autumn of 2021, the first tenants will move in.
| Name | Surface (m2) |
Location | Use | Building period | Immobel share |
|---|---|---|---|---|---|
| Granary Island 75,633 | Gdansk | Mixed-use Phase 1: | Q1 2017 / Q4 2019 | 90% | |
| Phase 2: Q4 2020 / Q4 2023 |
|||||
| Central Point | 19,100 | Warsaw | Offices | Q2 2018 / Q2 2021 | 50% |
Polish CRE investment volume was approximately EUR 5.08 billion in 2020, of which almost EUR 2.8 billion was invested in the office market.
Source: CBRE, as per 31 December, 2020.
In Germany, we are maintaining our focus on the main cities. In 2020, we made progress on a number of projects, with the perspective of breakthroughs in 2021.
Regarding our Eden1 project in Frankfurt, the team finished the structural works of the building and made a successful start with the sales. The apartments in this green residential tower are very much in vogue with the young professionals in the city. By the end of 2020, we had sold nearly half of the 263 units.
In 2020, German office real estate investment market achieved one of the best results in recent years with EUR 26.7 billion invested through the year.
Source: CBRE, as per 31 December, 2020.
TOTAL SURFACE: 20,000 m² LOCATION: Frankfurt USE: Residential BUILDING PERIOD: Q3 2019 / Q1 2022 IMMOBEL SHARE: 90%
See detailed project sheet on http://immobelgroup.com/en/real-estate-projects
The concept designs for the five-star hotel and residential units (villas, town houses and apartments) of the Four Seasons project in Marbella are ready and provide a tangible impression of what the resort will offer its inhabitants. Immobel Spain is awaiting the planning permits for the project. The start of construction is planned for the second quarter of 2022.
The residential market in the Brussels Region has been experiencing a boom for some time. Favourable demographics and a slow housing response have contributed to this steady trend. Like sale prices, rents too have been increasing in the Brussels Region over the long term. They levelled off somewhat around 2011 but have lately shown signs of increasing. There is a growing diversity in unit type, notably co-housing, as institutional investors are increasingly interested in the rental market potential of Brussels residential real estate. New developments can be commercialised as high as 6,000 €/m² with luxury units even higher.
Belgium counts a population of 11.492 million as of January 1, 2020. This is a 0.54% increase over the previous year and follows a trend of steadily increasing population averaging 0.59% annually over the last decade. Brussels Region has been by far the fastest growing of the three, averaging 1.1% growth annually versus 0.59% in Flanders and 0.41% in Wallonia over the last decade. The Federal Planning Bureau sees growth of 50,000 (0.44%) per year and moderating slowly towards about 30,000 (0.22%). Though slower than the frenzied years of the mid 00s, this is still a positive forecast. A big exception to these numbers is the change over 2020. A summer update to the forecast expects a change of just 0.15% (16,900) given the COVID pandemic has greatly hindered international movement.
Belgium counts 4.989 million private households, as of January 1, 2020. The number of private households has been growing at about 0.7% annually, or 31,700 to 4.989 million. That yields an average household size of 2.3 people per household. The Federal Planning Bureau also forecasts household creation. The overall trend follows that of the population. Growth is forecast to be strong in the early 2020s before slowing but remaining solid. In terms of household types, single households will continue to lead the expansion, while the number of those cohabitating with and without children as well as single parents will increase. Those households married and with children will continue to decline, while the picture for those married without children is mixed, but eventually decreasing.
Belgium counts 5.577 million residences in 2020. In the last year, the number of residences increased by 62,684. Brussels Region and Flanders saw the highest increase in development activity. New development is dominated by apartments. This can often be at the expense of traditional houses, as available space becomes scarce, particularly in urban settings. In Brussels, 8,191 new apartments were completed in 2020.
Median housing prices in Belgium have followed a stable upward trend. In 2020, house prices continued to climb to a median price of €250,000 in the third quarter, being the highest value achieved to date. The median price for apartments increased and recorded a median transaction price of €205,000 in the third quarter of 2020. The Brussels-Capital Region is the most expensive region, where median prices for houses and apartments were €450,000 and €230,000 in Q3 2020, respectively.
New builds are typically smaller and of higher quality compared to existing units. Exit prices for typical new apartments in Brussels range from 2,500 €/m² in the western side of the region to 6,000 €/m² in the city centre and Louise corridor, with luxury projects even higher. In Antwerp, exit values are 2,500 €/m² to 4,000 €/m² and more than 5,000 €/m² in select new towers. In Ghent, new apartments in the city centre are being commercialised at 5,000 €/m².
Office take-up Brussels in 2020 was low at 272,000 sqm. This represents a decrease of 50% compared to last year's number. The subdued demand was mainly caused by the ongoing uncertainty resulting from the global COVID-19 pandemic. Although it is still too early to draw final conclusions as to the impact of the crisis, occupiers are re-evaluating their real estate strategies. Overall, CBD markets and grade A facilities continue to experience demand.
Despite the difficulties in the market from the pandemic, regional office take-up in 2020 was high at 311,000 sqm marking the fifth consecutive year of take-up over 300,000 sqm. The Walloon markets did especially well, accounting for almost half of the regional take-up generated by many pre-letting transactions from the domestic public sector. Particularly in Namur take-up recorded a record high of 80,600 sqm. The Flemish markets, more particularly Antwerp and Ghent did well, accounting for a take-up of respectively 74,891 sqm and 38,700 sqm. Nevertheless, demand in the Flemish Regions hampered in 2020 by the lack of available quality space.
Unusually, office demand in the regional markets was higher in 2020 than in the Brussels market, accounting for respectively 311,000 sqm and 272,00 sqm. Combined, office take-up in Belgium registered 583,300 sqm in 2020. This subdued take up is in part due to many tenants having deferred long-term occupancy plans and instead having opted for other (short-term) solutions, while they get to grips with COVID-19 restrictions and long-term implications for their businesses. The health crisis has exposed a vulnerability in coworking that has led to smaller deals and more diverse operators.
The average vacancy rate for the Brussels market is slightly up from the previous year to 7.57%. Nevertheless, voids in the CBD markets remain tight, especially given the delay in construction over 2020. In the regional markets, there is a chronic lack of quality, available space. Speculative projects have reached stabilised occupancy, and the immediate pipeline is low. This limited new speculative development and strong demand has put downward pressure on the available stock. Larger Walloon markets such as Namur and Liège are facing even greater constraints, with extremely limited quality available space and almost no new speculative development to relieve this pressure, keeping vacancy low. Readily available grade A space is limited in all submarkets.
Brussels office development completions totalled 180,000 sqm in 2020 after rebalancing, with projects being pushed into 2021 and 2022. The Brussels development pipeline through 2021 is robust at more than 450,000 sqm, though more than 64% is already accounted for. The largest projects are in the North district and the centre, as the market seeks to reinvent itself for the modern occupier. In the regions, a substantial pipeline of projects has been established, especially in markets such as Antwerp and Ghent. However, in some smaller regional markets, developers are still hesitant to break ground at risk, with Mechelen being the best example of this. And with the added uncertainty from the Corona crisis, financing for large projects is expected to become more complicated, further limiting future supply, especially in those markets.
Prime rent in the Brussels market remained 315 €/sqm/yr in 2020. Strong pre-lets saw prime rates rise to 280 €/sqm/yr in the North district and equivalent to the city centre to 275 €/sqm/yr. Regional markets with bold new construction are seeing activity around new rental highs. Prime rents slightly increased to 160 €/sqm/yr in Ghent and to 155 €/sqm/yr in Mechelen. In Wallonia, prime rents increased to 165 €/sqm/yr. Prime rents in Antwerp and Liège remained the same at respectively 170 €/sqm/yr and 160 €/sqm/yr. Districts with limited new space on the horizon with see prime rents under upward pressure.
In 2020, investors closed CRE deals in Belgium for more almost €6 billion. This is a 20% increase over the previous year and one of the highest investment volumes recorded in the Belgian real estate market, where Belgium has outperformed most European markets. Brussels offices accounted for 50% of total volume, which is in line with the historical evolution, though is high in terms of volume at almost €3 billion. Though opportunistic investors closed high-yield deals, core properties dominated interest. Belgian and foreign investors were each responsible for about 50% of total investment capital. Overall, offices prime yields for standard leases are currently at 3.75% following strong bidding on prime assets in the CBD.
Key stats: 7.57% Brussels vacancy; 315 eur/sqm/yr prime rent; 3.75% prime yield for standard leases sources : CBRE
The Belgian housing stock divided by Region is 58% in Flanders, 36% in Wallonia, and 6% in Brussels. Given the size and density of the regions, the proportion of apartments relative to the stock is 59% in Flanders, 19% in Wallonia, and 22% in Brussels. The proportion of apartments in the total Belgian housing stock has increased from 19% in 2001 to 27% in 2020, to some extent at the expense of attached homes.
The statistics on building permits are available through September 2020. In Belgium, a total of 62,030 permits for new units were issued during this time; more specifically 40,399 permits for houses and 21,631 for flats. This is a 9% decrease for apartments and a 3% decrease for houses over the same period in 2019.
The FOD Economie is now longer reporting building plot prices. Few vacant, buildable plots remain in Brussels. As a result, developments typically involve the demolition/conversion of existing buildings to an alternative use such as residential. During the last year we have seen an increase of sales concerning lands with permits as well as a rise of prices for lands with urban planning permits. These incidences can be upwards of 2,500 €/sqm for the best locations with high exit values, such as in Chatelain, the Sablon or on the Avenue de Tervueren. Land and older buildings for development without urban planning permission have values closer to 1,500 €/sqm. In other submarkets, such as decentralised areas, this is closer to 700 to 1,000 €/sqm.
Key stats: 2.3 people per household in Belgium; 62,684 net new housing completions in Belgium as of Jan 1 2020. sources: FOD Economie, IBSA, CBRE, Federal Planning Bureau
On 1 January 2020, France counted a population of 67 million inhabitants. This represents a change of 0.13% from the previous year and a moderation of the pace of growth that averaged 0.37% annually over the last decade. As in previous years, the net natural balance is the driver of population at more than 140,000 people.
Residential real estate prices increased by 5.0% in Q3 2020 (y-o-y) in metropolitan France. Appreciation of second-hand dwellings outpaced new dwellings 5.2% versus 2.5% over the same period. Paris experienced more robust price growth despite falling transactional activity as a result of confinement measures. Prices topped 10,860 €/sqm in October for second-hand apartments, which is an annual increase of more than 6%. The pace of this growth, though, has slowed over 2020. Rental growth was more moderate. In Q3 2020, private sector rents in the greater Paris area rose 0.8% (y-o-y), though public sector rents fell 0.6%. Prime rents remain stable in 2020 at 34.5 €/sqm/mo.
Outside of Paris, second-hand apartment pricing has held up better than the nation's capital, particularly in town centres. Larger towns have seen price growth of 6.7% (Q3 2020 y-o-y), while town centres have averaged 7.8% growth over the last 12 months. Lyon has led the way with an increase of 11.5% to an average price of 4,969 €/sqm as the most expensive regional city. Bordeaux and Nice also count high average apartment prices of 4,446 €/sqm and 4,422 €/sqm, respectively. If prices have grown faster than Paris, rents have grown slower. Rents in the private sector increased by 0.6%, while those in the social sector declined by 0.7% in Q3 2020 (y-o-y). Prime rents remain stable in Lyon in 2020 at 16.5 €/sqm/mo.
At the beginning of 2020, the French housing stock is estimated at 37 million units, of which 81.7% are main residences, 9.9% are secondary/occasional accommodation, and 8.4% are vacant. Paris claims 4.734 million of these housing units. For the last 30 years the total stock has been expanding at 1.1% per year, which is faster than the general population growth but closer to the expansion of households. Eurostat identifies 64% of the population as owning their residence, while 36% rent their homes. Overall, this is very similar to the euro area average.
The pandemic lockdowns have weighed on construction and permitting in France. Q3 YTD permits fell 16% to 270,700 compared to the same period in 2019. That said, there were more authorisations in September than any other month in 2020, so the market is showing signs of improvement. The slowdown in the first half of the year is also reflected in the offers and reservations of new builds. Offers recorded the lowest figure (37,961) in more than ten years, and sales declined 42% in Q2 y-o-y. Due to the crisis, cancellations were particularly high. In order to control inventory, developers have turned to leasing and other alternatives for more than 6,000 properties for sale. Still, new build prices increased by 2.5% in Q3 y-o-y.
sources: CBRE, Eurostat, INSEE, BTSLC, SDES
The Parisian office market is one of the most vibrant in Europe. Counting 58.78 million sqm at the end of 2020, the stock expanded by 439,000 over the year (0.75%).
The COVID-19 pandemic has weighed on office activity in Paris and wider France in 2020. Take-up in Île-de-France was 1.32 million sqm, which is a decline of 45% versus 2019. Occupiers in major markets have followed the trend of renegotiating current space and delaying decision making until greater clarity returns to the market and real estate strategies can be reformed. The large surface segment (>5,000 sqm) has suffered the most, while those spaces <5,000 sqm have been more resilient. In gross figures, La Defense experienced increased take-up activity – the only Parisian submarket to do so.
Vacancy increased as a result of lower activity and the completion of major projects. Still, vacancy in Île-de-France is low at 6.3% at the end of 2020. Availabilities in central Paris are lower at around 4% (Paris Centre West), while those in La Defense (10.7%) and Western Crescent (10.7%) are higher.
Despite the uncertainty in office markets, prime rents continue to climb higher given the standard of new projects and demand for well-located, quality space. The CBD experienced a 6% increase y-o-y to 930 €/sqm/yr. Those in Southern Paris saw an even greater increase of 18% to 900 €/sqm/yr. Prime rents in La Defense retreated slightly to 530 €/sqm/yr.
While Paris remains the favoured destination, regional markets offer substantial space at lower rental values. The markets of Lyon, Lille, Toulouse, Marseille, and Bordeaux count a combined 22 million sqm, with Lyon the largest. The markets, though, have not been immune to the pandemic uncertainty, as take-up declined by 46% in 2020 to 603,000 sqm. The vacancy evolution has been mixed dependent on the market, and prime rents are well-supported with Lille and Toulouse recording small increases.
The initial months of the pandemic froze investment markets both from the uncertainty and travel restrictions associated with the lockdowns. Deals continued as everyone learned to work within the limitations over time. As a result, Total CRE investment in France in 2020 was €28.98 billion, which is a 38% decline over the previous year. Offices accounted for €18.274 billion or 63% of this activity. Investment in Paris offices specifically was €15.74 billion, or 86% of all office investment in France, which is consistent with recent activity.
In terms of pricing, the yield gap between core and peripheral markets widened over 2020. Central markets experienced slight yield compression of 5 to 15 bps, while those in the periphery saw yields increase by 25 to 50 bps. Several factors are influencing this development including the relative safety of central Parisian office assets and increase in perceived risk from banks and investors for other markets or office classes.
Key stats: 1.32 million sqm Île-de-France office take-up; 3.7% CBD vacancy; 930 €/sqm/yr prime rent; €15.74 billion invested in Paris offices
sources: CBRE
Luxembourg continues to be one of the fastest growing countries in Europe. As of January 1, 2020, the population of the Grand Duchy was 626,108, which is a 2.0% increase over the previous year. This is in line with the average of the last five years of 2.15%. Foreigners make up a substantial portion of the population at 47.4%, though this has declined slightly over the last two years.
The Luxembourg residential market continues to perform well, supported by high population growth, a robust economy, and continued low interest rates. Supply struggles to keep pace with the expanding population, though, pushing up prices and more moderate earners to the periphery of the city. Average apartment prices in Q3 2020 were €583,072, which is a 10.2% increase y-o-y. In relative terms this is 7,363 €/sqm, a 10.6% increase y-o-y. The number of transactions declined through the first three quarters of the year from lockdown and travel restrictions. Apartment transactions totalled 4,624 over this time, which is 13.5% less than the same period the previous year. The total value of transactions increased, however.
Luxembourg City grew 2.6% to a population of 122,273 as of January 1, 2020. Demand for residential properties is high, supported by the strong population growth, being the centre of the Duchy's economy, and overall continued low interest rates. Average transaction prices for existing apartments are 9,900 €/sqm, while the highest tier of apartments can be over 13,000 €/sqm. New build apartments average 11,500 €/sqm, with the highest tier achieving 14,000 €/sqm.
As the city becomes expensive and crowded, people are increasingly looking towards decentralised and peripheral areas for more accommodating values. Luxury developments are underway for those still wanting comfort, though prices of 5,000 to 7,000 €/sqm are still commonplace. New projects can commercialise for prices more than 8,000 €/sqm.
New lease regulations are presently being debated in parliament to strengthen tenants' rights, particularly for the lowerand middle- income earners who are most financially burdened by the high residential costs. At the same time, rents continue to increase. For the year leading to Q2 2020, the average asked rent in Luxembourg is 1,550 €/month, or 29.4 €/sqm. On a relative basis, Luxembourg City has the highest asking rents at 34.5 €/sqm, followed by Leudelange (33.7 €/sqm) and Mamer (30.5 €/sqm).
Recent new build apartment transaction prices in Luxembourg are on average about 15% higher than existing units, achieving 7,900 €/sqm or prices of €628,400. Zooming in, Bertrange recorded the highest average transaction prices for new apartments at 11,001 €/sqm for the period October 2019 to September 2020 and ranging from 8,600 to 15,300 €/sqm.
New apartment building permits declined 8.8% y-o-y through the first six months of the year. Not all areas experienced an equal evolution of permits. Luxembourg City saw a 72% increase, while Cantons of the North and West saw a decline of almost 34%.
Key stats: €583,072 average apartment price in Q3 2020; 72% increase in multi-unit residential permits in Luxembourg city in H1 2020; highest tier of apartments in Luxembourg City can achieve 13,000 €/sqm.
sources: Statec, LISER, Observatoire de l'Habitat
Despite high anxiety and a lot of questions, 2020 remains a very good year for the office market. Two city districts in particular clearly outperformed in terms of take up – Kirchberg and Station - as they experienced significant activity from governmental and European institutions, with the pre-letting of the third extension of the European Bank of Investment (65,000 sqm) in Kirchberg and the Caisse Nationale de Santé (50,000 sqm) in the Station district.
The Cloche d'or district is also seeing high and diverse activity, whether in letting or investment transactions, especially in the new Extensa Cloche d'Or development area, with the Bijou, Kocklescheuer and Darwin II buildings fully pre-let within the year.
Leudelange and Belval were the centres of much activity in 2020. Leudelange has seen high letting activity in newly delivered buildings such as W4, and Altitude where Northern Trust took additional space (6,600 sqm). Pre-letting activity was also noted in the Wooden IKO/BPI co-development project (Baloise) and one block of the Urbaterre Promobe project (Bonn Steichen Partners). Belval has seen two large transactions, with Deloitte occupying 10,000 sqm in the Terres Rouges building, and the Luxembourg state pre-letting 10,000 sqm in the Twist project.
Districts such as Airport and Hamm, have seen good absorption of vacant space, with the Luxembourg state taking 16,000 sqm in the Ikaros building in the Airport district. Elsewhere, Bertrange saw an increase of activity in 2020, mostly due to letting transactions closed in the Atrium Business Park complex.
Overall, the Luxembourg State was very active in the peripheral districts such as Belval, Leudelange and Strassen.
Despite the sudden shutdown of transactional activity during the first lockdown, a higher number of transactions closed totalling almost 350,000 sqm this year. More than half represents pre-letting transactions, such as for example the new CNS headquarters in the Station district for 50,000 sqm or the last extension of the EIB with 65,000 sqm, which were previously counted upon building completion.
This year has seen a rebalance of interest between Luxembourg City and the periphery. While activity in Luxembourg City has been hindered due to a lack of available space, the peripheral markets are gaining credibility with occupants as the continue to develop. Providing an attractive working environment for its employees will become essential, not only in terms of mobility but also in terms of well-being and services.
Government and European Institutions were the star performers in 2020 and recorded 101,000 sqm and 82,000 sqm of take-up, respectively.
Approximately 140,000 m² of office space was considered vacant in Q3 (latest data available) out of a total stock of 4.40 million m², putting the vacancy rate at a very low 3.2% at the end of Q3. City districts remain very tight: vacancy is less than 2% in the CBD, Kirchberg and the Station district. Some markets outside of the city saw significant decreases, such as Bertrange going from 18% in 2019 to 8% in 2020, or Hamm from 19% to 6%, and Belval decreasing even lower from 4% to 1%. For the first time ever, vacancy rates in all districts are below 10%.
The pandemic did not significantly delay construction projects, as 92,000 m² of offices were delivered in 2020. Dependent on the European Parliament's KAD 2 extension, the 2021 pipeline will vary between 125,000 sqm and 295,000 sqm. Overall, projects are diverse in both size and markets.
The strong letting market and supply and demand dynamics are such that rental values are well-supported. Given the buoyancy of the overall market, prime rents in Luxembourg have increased from 50 € to 52 €/sqm/month in the CBD (excluding VAT), from 30 € to 35 €/sqm/mo in the Cloche d'Or and from 39 € to 42 €/sqm/mo in the Kirchberg district. Average rents for the City districts are 38 €/sqm/mo, while the peripheral average is 23 €/sqm/mo.
With an investment volume of just over €1.6 billion and the arrival of new institutional investors, Luxembourg confirms its status as an attractive market for institutional investors. Investment volume was exceptional in Q1 and picked up in Q4 after two weaker quarters.
The Cloche d'Or district, currently still in full development, focused on its own 1/3 of the volume invested, or 500m euros. It is now considered part of the institutional districts along with the CBD, the Station district and the Kirchberg district.
Key stats: 3.4% vacancy in Q3 2020; 52 €/sqm/mo prime rent; 3.40% prime investment yield,
sources: CBRE
The Polish housing market posted broadly positive figures in 2020 despite the complications from the COVID-19 pandemic and limited population growth. Construction continued with pace in 2020, increasing 6% (November y-o-y) to 196,000 units. Of this amount, developers completed almost twice the amount (127,300) as private investors (65,700). New housing starts and permits, though, declined as a result of containment measures in 2020.
Housing prices in 2020 have grown at one of the fastest paces in Europe. Through Q3 2020, the average sale price increase 14% y-o-y, supported by low interest rates, rising construction costs, and increasing wages. The average sale price for an apartment was 4,987 PLN/sqm in Q3, which was a slight decrease from Q2's record price of 5,000 PLN/sqm.
Mixed dynamics through the pandemic have led to divergent prices in the primary and secondary markets in Warsaw and other major cities. In Warsaw, the primary market noted a large discrepancy between apartment offers and sales of almost 1,300 PLN/sqm in Q2, before it corrected in Q3. The secondary market, on the other hand, experienced the opposite effect. Developers also appear to be stabilising their asked prices, whereas private individuals are a little more aggressive in their selling approach. Still, prices in both markets in Warsaw note higher 2020 prices versus 2019, through Q3.
Sales activity in Q3 showed improved performance over the previous quarter. For the top markets in Poland, sales doubled versus Q2. This amounts to net sales of 4,603 flats in Warsaw.
The Polish residential market is still dominated by private owners. More than 84% of occupiers own their residence, which is well above the European average. Prime rents in multifamily housing are highest in Warsaw at 18.2 €/sqm/mo, followed by Wroclaw (16.2 €/sqm/mo), Gdansk (14.8 €/sqm/mo) and Krakow (14.2 €/sqm/mo). The evolution of prime rents is mixed, however, with Warsaw experiencing a 6.8% decline y-o-y, while Wroclaw saw an 11.8% increase. A recent CBRE survey illustrates that almost two-thirds of tenants rent their residence because they cannot afford to buy an apartment. Consequently, the most important factor when choosing a place to rent is the rental price (51% of respondents) and location (43% of respondents).
Key stats: 196,000 new units complete through Nov 2020; Prime residential rent of 18.2 €/sqm/mo in Warsaw; Quarterly average prices hit 5,000 PLN/sqm in Q2.
Sources: Natl Bank of Poland (NBP), Central Statistics Poland, CBRE, Eurostat
The Warsaw office market is by far the largest in Poland, accounting for half of the office stock in the country at 5.8 million sqm. An additional 234,000 sqm of new office space was added to the stock through Q3 2020, about 85% of which was in central markets. An additional 650,000 sqm is under construction, also concentrated in the CBD.
Occupier activity in Warsaw is dominated by financial, business service and tech companies. However, the pandemic has weighed on activity in 2020. Office demand in Warsaw totalled 448,000 sqm through Q3 2020, which is a decline of 35% compared to the same period in the previous year. Take-up (excluding renegotiations) was 293,000 sqm. Pre-leasing was strong in the first half of the year but decreased notably in Q3.
Vacancy has ticked upwards in recent quarters, largely due to new deliveries that were pre-leased at 66% occupancy on average. Given that the majority of development has been in the CBD, the vacancy increase was most notable here. At the end of Q3, 559,000 sqm of space was immediately available, translating to a vacancy rate of 9.6% for the Warsaw market.
Headline rents have remained stable amidst the market turmoil. Prime rents for the best office space in the Warsaw CBD amount to 25 €/sqm/mo, while those outside of the CBD are 15.50 €/sqm/mo. Given the current environment, some landlords have needed to be more flexible in their leasing approach by offering more generous incentives to occupiers.
The regional Polish office markets continue to develop and offer attractive new space. As of Q3, the stock of the eight largest markets expanded 345,000 sqm to more than 5.7 million sqm.
The first half of 2020 saw a record 334,800 sqm of contracts signed, mostly from an active Q1 and legacy deals. Q3 saw an additional 126,500 sqm of new leases in the eight largest regional markets. While this activity is almost 10% higher than the previous quarter, it is almost one-third less than Q3 of the previous year. Still, some markets performed well in terms of leasing activity such as Krakow Lodz and TriCity. The IT sector was the most active sector, particularly in Krakow. In the second quarter when the implications of the pandemic became clearer, renegotiations picked up and pre-leases decreased.
Vacancy in regional markets drifted upward through Q3 2020 to 11.8%, which is the highest since 2010. The vacancy rate, however, was influenced by the completion of major projects with an average occupancy rate of 45%. Landlords of new buildings and those presently under construction are offering fit-out contributions while maintaining headline rents. More generally, prime rents have held up well. Katowice and Krakow noted small decreases as of Q3, while Lublin, Poznan and Wroclaw experienced prime rent increases since the beginning of the year.
Poland is one of the major investment markets in Central Europe, accounting for 40% of this market annually in recent years.
2020 commercial real estate investment in Poland totalled €5.08 billion, which is a 34% decrease from the previous year. Though a notable decline, it is still the third highest volume in the previous 14 years. Industrial and logistics proved to be the most popular asset class followed by offices at almost €2 billion. Warsaw makes up the vast majority of this as the preferred destination for office investors.
Office assets have experienced a repricing over 2020. Prime investment yield for CBD assets increased from 4.25% to 4.65% as of the end of the year. Secondary Warsaw markets and regional office markets increased 25bps to 6.75% and 6.0%, respectively.
Key stats: 9.6% Warsaw vacancy in Q3; 25 €/sqm/month Warsaw prime rent; 4.65% Warsaw office prime yield sources: CBRE
According to a first report of the Federal Statistics Office (Destatis), 83.2 million people were living in Germany at the end of 2020. Owing to lower net immigration, higher mortality and an estimated marginally smaller number of births compared with the previous year, the population did not rise for the first time since 2011.
Residential prices in Germany were stagnant from the early 2000s until 2009. Prices since 2010 have been among the fastest rising in Europe. According to the Bundesbank price index, the top seven cities have seen prices more than double since 2010. Deutsche Bank predicts similar prices increases through at least 2022, largely driven by delayed new construction. Current commercialised prices for good quality apartments of 60 to 80 m² are highest in Munich at 9,480 €/sqm. Frankfurt and Stuttgart follow at 7,235 €/sqm and 6,985 €/sqm, respectively. Berlin is seventh on the list at 5,929 €/sqm but counts the second largest price growth of 65% (2015 to 2019).
As a result of these expensive buying prices, combined with affordable rents managed by public housing companies and lack of legislation favouring homeownership, Germany is known for having a low home ownership rate. Just 51% of people own their home. This amount is evenly split between those who maintain a mortgage/loan and those who own their home outright. The remaining 49% of people rent their residence, being the second highest rate in Europe behind Switzerland. The German government carried out a tenant survey in 2018/2019. Average gross residential rents in Germany were recorded at 7.9 €/sqm/mo. Hamburg claimed the highest rents at 10.4 €/sqm/mo, followed by Munich (9 €/sqm/mo) and Berlin (8.8 €/sqm/mo).
Germany counts 42.513 million residential units at the end of 2019. Housing stock growth has been just 0.57% per year on average over the last decade, which is very modest. The average size residential unit is 92 sqm. This is a growth of one square meter over the last decade. The average residential unit has 4.4 rooms.
Presently, Germany is experiencing a serious housing imbalance. Development is simply not keeping up with the demand and is the single biggest challenge to the residential market today. Development of some 270,000 units annually is around 100,000 fewer than the government's target. Though, 360,000 residential building permits were issued in 2019. And, YTD 2020 until November show already 332,000 residential permits that were issued this year. Estimated building costs are reported as part of permit applications. These have been growing at more than 3% per year on average and exceed 3,100 €/sqm for permits granted in 2020. This comes to more than €300,000 per unit on average. Given the changing household configurations and increasing proportion of singles, the average living space per capita has been increasing over time from 42.5 sqm/person in 2009 to 47 sqm/person in 2018. Framed differently, residential resource intensity per capita has been increasing.
Key stats: German housing stock is 42.513 million residential buildings; Munich records the highest new commercialised apartment prices of 9,480 €/sqm; 332,000 building permits issued YTD November 2020. sources: Destatis
In 2020, 2.16 million sqm was newly leased or taken by new owners in Germany's five most important office markets (Berlin, Düsseldorf, Frankfurt, Hamburg and Munich), marking a decline of 36% compared to 2019. The ongoing uncertainty about how the pandemic will develop is being felt in in all five of the large cities, with Berlin retaining its lead from 2019 as the country's most active office market with a take-up of 660,000 m². The second most popular office market was Munich, with a take-up of 558,500 (-26.9%), followed by Frankfurt 330.200 (-40.2 %), Hamburg 318,300 and Düsseldorf 293,500 (- 43 %)
Despite the uncertainty in office markets, weighted average rents were on the rise or remained stable in almost all the Top 5 markets. Above all, Berlin (up 8.1%), Munich (up 6.7%) and Frankfurt (up 7.4%) are proof that users are still willing to pay the rents demanded, especially in markets where contemporary, high quality space in central locations is a scarce commodity. In Hamburg, the increase was more moderate at 1.0%. Düsseldorf was the only city where rents were in decline, which is mainly attributable to several large-scale lettings in city fringe locations and submarkets being concluded at lower market rents. Prime rents remain stable, though they were recorded higher for first-rate office space in Berlin and Hamburg compared with the previous year.
Vacancy in the top 5 German markets together slightly increased by 0.5% to 3.9% in 2020. The greatest upturn in the vacancy rate was registered in Berlin (+ 1.1%). However, with a vacancy rate of 2.3%, the capital city still registers the lowest rate of the 5 German metropolises. Hamburg's vacancy rate is also hovering below the three-percent mark (2.7%) despite an increase of 0.3%. In Munich, vacancies rose by 0.6% to 3.3%. The vacancy rate in Frankfurt dropped by 0.4% to 6.4%, which means that of the Top 5 markets Düsseldorf currently has the highest vacancy rate of 6.0%.
Despite the macroeconomic challenges presented by the pandemic, with the services sector taking a particularly hard hit, the German office real estate investment market achieved one of the best results in recent years with €26.7 billion invested in 2020. Although, as expected, the overall result dropped by 31 percent compared with the exceptional record year of 2019, both the 10-year average and the very good results of 2014 through 2016 were partly significantly outperformed.
Office properties continue to be the most important investment target of domestic and international investors who place great trust in the sustainable and stable development of Germany as an office location. Measured by their relative proportion in the overall transaction volume, office properties therefore remained the dominant asset class with 35%, ahead of residential with 25%, retail with 15% and the logistics sector with 10%.
The largest single asset transactions were also attributable to these markets, particularly Frankfurt, where the three largest single asset deals took place. With an investment volume of €5.6 billion, a repeat of the year-earlier level, Frankfurt was therefore the strongest market of the top locations, followed by Berlin with €5.5 billion (-43%) and Hamburg with €3.45 billion (+3 %). Munich came in fourth place with €3.1 billion (-64%), with Düsseldorf close behind at €3.0 billion (-27%). Aside from this, around €5.45 billion was invested outside the top markets in 2020, with the majority of this volume concentrated on the regional centres of Nuremberg, Wiesbaden, Essen and Leipzig.
Despite the crisis, German office real estate topped the list of domestic as well as international investors in 2020. This ongoing strong investor demand is substantiated by the average prime yield in the Top 7 markets that slipped six basis points to 2.85% in 2020, marking a new record level.
Key stats: Highest office prime rent in Germany is 44 €/sqm/month in Frankfurt ; lowest vacancy in Germany in Berlin : 2.3% ; German office investment volume €26.7 billon sources: CBRE
Ladies and Gentlemen,
We have the pleasure to present our activity report 2020.
Immobel closed its annual results on December 31st, 2020.
Solid recovery in 2nd half, largest pipeline ever. Immobel maintains its dividend policy.
1 EBITDA (Earnings Before Interest, Depreciation and Amortization) refers to the operating result before amortization, depreciation and impairment of assets (as included in Administration Costs)
2 Sales value or gross development value: the expected total future turnover (Group share) of the respective projects
3 Total number of apartments and houses on a 100% basis
4 Including the treasury share sale of 5 January 2021.
The table below provides key consolidated figures for FY2020 (EUR million):
| Results | 31/12/2020 | 31/12/2019 | Variance |
|---|---|---|---|
| Revenues | 375.4 | 419.5 | -11% |
| EBITDA | 52.8 | 124.6 | -58% |
| Net profit Group share | 33.3 | 102.4 | -68% |
| Net profit per share (EUR/share) | 3.58 | 11.66 | -69% |
| ROE | 7.8% | 29.7% | -74% |
| Balance sheet | 31/12/2020 | 31/12/2019 | Variance |
| Inventory | 1140.8 | 961.1 | 19% |
| Equity | 491.9 | 428.2 | 15% |
| Net debt | 603.9 | 550.9 | 10% |
| GDV (In BEUR) | 5.1 | 4.5 | 13% |
Revenues in FY2020 were mainly driven by the sale of an office building (Möbius I) in Belgium and residential sales in all countries (EUR 264 million).
While each of the P&L financial indicators have been impacted by a slowdown in sales and reduced construction activities in Q2 as a result of the lockdown, EBITDA and net profit group share have also evolved negatively due to the exceptional sales of Centre Etoile in Luxembourg and Möbius II in Belgium last year.
The sales value of the company's portfolio grew by 13% from EUR 4.5 to 5.1 billion while the underlying inventory5 grew by 19% to EUR 1.1 billion, driven by new acquisitions made in 2020. The increase in net debt was relatively limited, reflecting the proceeds from the placement of 900,000 treasury shares (in 2020; another 262,179 treasury shares were sold in January 2021), resulting in a gearing ratio of 55% (compared to 56% at the end of 2019).
In 2020, Immobel launched its real estate investment management services, offering its development capabilities to third party investors, be it in asset-specific joint ventures in European cities or through regulated discretionary funds. The Immobel BeLux Office Development Fund successfully achieved equity commitments for more than EUR 75 million from Institutional Investors and High Net Worth Individuals. Both the Total headquarters in Brussels and the Scorpio assets in Luxembourg will be proposed to the Fund as seed assets, with a view to developing and selling them once leased. The real estate investment management strategy will enable Immobel to accelerate its development in Europe, investing its balance sheet in more transactions, diversifying its project risks and finally to create an additional stable revenue line, further to its development project revenue resulting from its investment alongside investors.
5 Inventory refers to investment property, investments in joint ventures and associates, advances to joint ventures and associates, inventories and contract assets.
The company realized 10% fewer residential sales in 2020 compared to its objectives due to a slowdown of sales during the Q2 lockdown. In the second half of the year, sales recovered in each of its markets. Partly due to the effect of COVID-19, there was strong demand for more spacious homes and apartments both in urban as well as suburban areas. Projects that did well were O'Sea in Ostend, Eden in Frankfurt, Crown in Knokke, Lalys in Astene and Plateau d'Erpent in Erpent. Also in Gdansk, the sale of apartments in the Granary Island project (phase 2) was very successful; 180 were sold by the end of 2020. In the Vaartkomproject in Leuven, the company sold a residential complex for elderly people. Furthermore, Immobel signed a 9-year lease agreement with ING for a large office project in the European Quarter of Brussels.
The health crisis as well as more challenging regulatory environments resulted in fewer new real estate projects being permitted in 2020 across the markets in which Immobel is active. This resulted the supply of new-build residential projects being at a historical low, supporting strong demand and prices for residential real estate even more. In 2020, Immobel obtained permits representing a sales value of EUR 314 million and currently has pending permit applications worth over EUR 1.4 billion in sales value. Key projects for which Immobel expects to obtain permits in 2021 are among others A'Rive (the former Key West) (529 units), Brouck'R (303 units) and Ilot Saint Roch (291 units) in Belgium, Polvermillen (216 units) in Luxembourg, Buttes Chaumont (60 units) and Bussy St Georges (223 units) in France. With the launch of construction and commercialization of these projects expected in the course of 2021, these projects will significantly contribute to the results as from 2022 onwards.
Thanks to its strong balance sheet with EUR 148.1 million of cash and EUR 75.7 million additional equity raised through the sale of its treasury shares, Immobel grew its portfolio with more than 13% to EUR 5.1 billion by acquiring assets worth EUR 845 million in sales value.
In Belgium (sales value portfolio: EUR 2.6 billion), Immobel won the Brussels South Station project (in partnership) and bought 50% of the shares in Brouckère Tower Invest SA for the Multi office tower in Brussels city centre. At the end of 2020, it acquired a number of office buildings and sites in Brussels from the French company Total, an ambitious circular redevelopment project.
Immobel Luxembourg (sales value portfolio: EUR 1.1 billion) bought shares of land plots in Schoettermarial with a view to developing a residential project of approximately 22,000 m². It also obtained exclusivity for a 'cradle-to-cradle' project of some 23,000 m² in Luxembourg City. Immobel Luxembourg also purchased the Scorpio project, a 3,700 m² office building located in Cloche d'Or. Finally, Canal in Esch-sur-Alzette was acquired: a listed building of some 6,000 m², a renovation and an extension for residential use and services.
In France (sales value portfolio: EUR 0.9 billion), the team signed a provisional sales agreement for a 3,000 m² office project in Pantin (Seine-Saint-Denis) and entered into purchase options for new residential projects for a sales value of EUR 114 million in Buttes Chaumont, Montévrain, Neuilly sur Marne, Othis and Romainville.
To further increase the company's commitment of structurally integrating sustainability into our projects, it has drawn up a plan with four concrete pillars that are linked to the United Nations Sustainable Development Goals. In 2021, we will take the next steps in this regard, with concrete KPIs and evaluation of our projects using GRESB benchmarking.
Since the merger in 2016, Immobel has evolved significantly. For this reason, the company also considered its positioning and communication in 2020. Based on surveys with different stakeholders and a number of internal workshops at all company levels and in all countries where Immobel has a presence, a new visual identity was created that will be reflected in all business communications in 2021.
The statutory auditor, Deloitte Bedrijfsrevisoren CVBA, represented by Kurt Dehoorne, has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position and consolidated statement of cash flows, and that the accounting data reported in the press release is consistent, in all material respects, with the draft consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position and consolidated statement of cash flows from which it has been derived.
| BEFORE IFRS 11 | AFTER IFRS 11 | |
|---|---|---|
| Belgium | 240,91 | 217,24 |
| Grand-Ducy of Luxemburg | 44,77 | 26,90 |
| France | 64,06 | 56,06 |
| Poland | 29,00 | 29,27 |
| Germany | 35,01 | 35,01 |
| Total | 413,75 | 364,48 |
| BEFORE IFRS 11 | AFTER IFRS 11 | |
|---|---|---|
| Belgium | 555,04 | 311,03 |
| Grand-Ducy of Luxemburg | 201,72 | 196,19 |
| France | 95,20 | 92,29 |
| Poland | 49,37 | 21,40 |
| Germany | 61,88 | 61,88 |
| Spain | 33,95 | 0,33 |
| Total | 997,16 | 683,12 |
| NOTES | 31/12/2020 | 31/12/2019 | |
|---|---|---|---|
| OPERATING INCOME | 375 390 | 419 547 | |
| Turnover | 2 | 364 479 | 408 784 |
| Other operating income | 3 | 10 911 | 10 763 |
| OPERATING EXPENSES | -333 526 | -327 192 | |
| Cost of sales | 4 | -300 766 | -291 027 |
| Cost of commercialisation | 5 | -1 702 | -3 160 |
| Administration costs | 6 | -31 057 | -33 005 |
| SALE OF SUBSIDIARIES | 133 | 19 618 | |
| Gain on sale of subsidiaries | 7 | 133 | 19 618 |
| JOINT VENTURES AND ASSOCIATES | 7 994 | 4 985 | |
| Share in the net result of joint ventures and associates | 8 | 7 994 | 4 985 |
| OPERATING RESULT | 49 991 | 116 958 | |
| Interest income | 5 773 | 3 240 | |
| Interest expense | -11 859 | -7 524 | |
| Other financial income | 1 440 | 738 | |
| Other financial expenses | -2 649 | -1 782 | |
| FINANCIAL RESULT | 9 | -7 295 | -5 328 |
| RESULT FROM CONTINUING OPERATIONS BEFORE TAXES | 42 696 | 111 630 | |
| Income taxes | 10 | -8 650 | -9 390 |
| RESULT FROM CONTINUING OPERATIONS | 34 047 | 102 240 | |
| RESULT OF THE YEAR | 34 047 | 102 240 | |
| Share of non-controlling interests | 775 | - 196 | |
| SHARE OF IMMOBEL | 33 272 | 102 436 | |
| RESULT OF THE YEAR | 34 047 | 102 240 | |
| Other comprehensive income - items subject to subsequent recycling in | 2 282 | ||
| the income statement | |||
| Currency translation | 2 282 | ||
| Other comprehensive income - items that are not subject to subsequent | 27 | 201 | - 1 |
| recycling in the income statement | |||
| Actuarial gains and losses (-) on defined benefit pension plans | 27 | 201 | - 1 |
| Deferred taxes | |||
| TOTAL OTHER COMPREHENSIVE INCOME | 2 483 | - 1 | |
| COMPREHENSIVE INCOME OF THE YEAR | 36 530 | 102 239 | |
| Share of non-controlling interests | 964 | - 196 | |
| SHARE OF IMMOBEL | 35 566 | 102 435 | |
| NET RESULT PER SHARE (€) (BASIC) | 11 | 3,58 | 11,66 |
| COMPREHENSIVE INCOME PER SHARE (€) (BASIC) | 11 | 3,82 | 11,66 |
| NET RESULT PER SHARE (€) (DILUTED) | 11 | 3,58 | 11,65 |
| COMPREHENSIVE INCOME PER SHARE (€) (DILUTED) | 11 | 3,82 | 11,65 |
| ASSETS | NOTES | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| NON-CURRENT ASSETS | 448 370 | 213 311 | |
| Intangible assets | 12 | 582 | 543 |
| Goodwill | 13 | 43 789 | 43 789 |
| Property, plant and equipment | 14 | 1 388 | 983 |
| Right-of-use assets | 15 | 4 390 | 6 441 |
| Investment property | 16 | 197 149 | 81 123 |
| Investments in joint ventures and associates | 17 | 106 195 | 55 899 |
| Advances to joint ventures and associates | 17 | 76 644 | 9 492 |
| Other non-current financial assets | 18 | 175 | 4 920 |
| Deferred tax assets | 19 | 16 369 | 6 374 |
| Other non-current assets | 20 | 1 689 | 3 747 |
| CURRENT ASSETS | 982 768 | 1087 903 | |
| Inventories | 21 | 683 121 | 694 580 |
| Trade receivables | 22 | 33 168 | 72 516 |
| Contract assets | 23 | 57 251 | 42 228 |
| Tax receivables | 3 450 | 2 703 | |
| Other current assets | 24 | 37 269 | 41 937 |
| Advances to joint ventures and associates | 20 399 | 77 743 | |
| Other current financial assets | 49 | 50 | |
| Cash and cash equivalents | 25 | 148 059 | 156 146 |
| TOTAL ASSETS | 1 431 137 | 1301 214 | |
| EQUITY AND LIABILITIES | NOTES | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| TOTAL EQUITY | 26 | 494 490 | 428 162 |
| EQUITY SHARE OF IMMOBEL | 491 922 | 426 151 | |
| Share capital | 97 256 | 97 256 | |
| Retained earnings | 392 143 | 328 693 | |
| Reserves | 2 524 | 202 | |
| NON-CONTROLLING INTERESTS | 2 568 | 2 011 | |
| NON-CURRENT LIABILITIES | 609 602 | 523 379 | |
| Employee benefit obligations | 27 | 603 | 633 |
| Deferred tax liabilities | 19 | 37 301 | 15 447 |
| Financial debts | 25 | 571 139 | 507 008 |
| Derivative financial instruments | 25 | 560 | 291 |
| CURRENT LIABILITIES | 327 045 | 349 673 | |
| Provisions | 28 | 2 114 | 3 882 |
| Financial debts | 25 | 180 810 | 200 063 |
| Trade payables | 29 | 60 927 | 59 564 |
| Contract liabilities | 30 | 3 896 | 5 690 |
| Tax liabilities | 7 110 | 1 354 | |
| Other current liabilities | 31 | 72 188 | 79 120 |
| TOTAL EQUITY AND LIABILITIES | 1 431 137 | 1301 214 |
The operating profit amounts to EUR 4.2 million for the past financial year.
The financial result amounts to EUR 72.2 million, being the net amount of interest charges on group financing (bonds and corporate lines) and interest income from loans to the various subsidiaries, mainly generated by dividends and disposal of treasury shares.
Immobel's financial year ended with a net profit of EUR 76.1 million.
The total Balance Sheet amounts to EUR 940 million and is mainly composed of financial investments in subsidiaries and claims on these subsidiaries (EUR 821 million), the project stock directly held by Immobel SA (EUR 47.8 million), own shares (EUR 13.1 million) and cash and cash equivalents (EUR 34.5 million).
The equity amounts to EUR 322.5 million as of 31 December 2020. The liabilities are mainly composed of long-term debts (EUR 380 million) and short-term debts (EUR 231.7 million).
The profit to be allocated, taking into account the amount carried forward from the previous year amounts to EUR 146 million.
Given the dividend policy approved by the Board of Directors and the results as of 31 December 2020, the Board of Directors proposes to the General Meeting of Shareholders of 15th April 2021 to distribute a gross dividend of 2.77 EUR per share in circulation for the year 2020, an amount that should increase every year, subject to the absence of any currently unforeseen exceptional events.
The Immobel Group faces the risks and uncertainties inherent to the property development sector as well as those associated with the economic situation and the financial world.
Without the list being exhaustive, we would like to mention the following in particular:
Changes in general economic conditions in the markets in which Immobel's properties are located can adversely affect the value of Immobel's property development portfolio, as well as its development policy and, consequently, its growth prospects.
Immobel is exposed to the national and international economic conditions and other events and occurrences that affect the markets in which Immobel's property development portfolio is located: the office property market in Belgium (mainly in Brussels), Luxembourg, France, Germany, Spain, and Poland; and the residential (apartments and plots) property market in Belgium, Luxembourg, Poland and France. This diversification of both business and countries means it can target different clients, economic cycles and sales volumes.
Changes in the principal macroeconomic indicators, a general economic slowdown in one or more of Immobel's other markets, or on a global scale, could result in a fall in demand for office buildings or residential property or building plots, higher vacancy rates and higher risk of default of service providers, building contractors, tenants and other counterparties, any of which could materially adversely affect Immobel's value of its property portfolio, and, consequently, its development prospects.
Immobel has spread its portfolio of projects under development or earmarked for development to limit the impact of any deterioration in the real estate market by spreading the projects in terms of time and nature.
Immobel's revenues are determined by disposals of real estate projects. Hence, the results of Immobel can fluctuate significantly from year to year depending on the number of projects that can be put up for sale and can be sold in a given year.
Furthermore, it cannot be guaranteed that Immobel will find a buyer for the transfer of its assets or that the transfer price of the assets will reach a given level. Immobel's inability to conclude sales can give rise to significant fluctuations of the results.
The policy of diversification implemented by Immobel for the last years and the merger with ALLFIN has allowed it to reduce its concentration on and therefore its exposure to offices in Brussels with an increased portfolio of residential and landbanking projects, which should give it a revenue base and regular cash flows.
When considering property development investments, Immobel makes certain estimates as to economic, market and other conditions, including estimates relating to the value or potential value of a property and the potential return on investment. These estimates may prove to differ from reality, rendering Immobel's strategy inappropriate with consequent negative effects for Immobel's business, results of operations, financial condition, and prospects.
Immobel takes a prudent approach to the acquisition and development of new projects and applies precise selection criteria. Each investment follows a clear and strict approval process.
Before acquiring a new project, Immobel carries out feasibility studies with regards to urban planning, technology, the environment, and finance, usually with the help of specialised consultants. Nevertheless, these projects are always subject to a variety of risks, each of which could cause late delivery of a project and consequently increase the length of time before it can be sold, engender a budget overrun or cause the loss or decrease of expected income from a project or even, in some cases, its actual termination.
Risks involved in these activities include but are not limited to: (i) delays resulting from amongst other things adverse weather conditions, work disputes, construction process, insolvency of construction contractors, shortages of equipment or construction materials, accidents or unforeseen technical difficulties; (ii) difficulty in acquiring occupancy permits or other approvals required to complete the project; (iii) a refusal by the planning authorities in the countries in which Immobel operates to approve development plans; (iv) demands of planning authorities to modify existing plans; (v) intervention by pressure groups during public consultation procedures or other circumstances; and (vi) upon completion of the development project, occupancy rates, actual income from sale of properties or fair value being lower than forecasted.
Considering these risks, Immobel cannot be sure that all its development projects (i) can be completed in the expected timeframe, (ii) can be completed within the expected budgets or (iii) can even be completed at all. It is in the framework of controlling this risk and others that Immobel has increased the diversification of its business/countries/clients, which allows it to reduce its concentration on any particular project or another.
Furthermore, Immobel has some projects where an asset under development is preleased or pre-sold to a third party and where Immobel could incur substantial liabilities if and when such projects are not completed within the pre-agreed timeline.
Immobel's operations and property development portfolio are subject to various laws and regulations in the countries in which it operates concerning the protection of the environment, including but not limited to regulation of air, soil and water quality, controls of hazardous or toxic substances and guidelines regarding health and safety.
Such laws and regulations may also require Immobel to obtain certain permits or licenses, which it may not be able to obtain in a timely manner or at all. Immobel may be required to pay for clean-up costs (and in specific circumstances, for aftercare costs) for any contaminated property it currently owns or may have owned in the past.
As a property developer, Immobel may also incur fines or other penalties for any lack of environmental compliance and may be liable for remedial costs. In addition, contaminated properties may experience decreases in value.
Loss of its managerial staff and other key personnel or the failure to attract and retain skilled personnel could hamper Immobel's ability to successfully execute its business strategies.
Immobel believes that its performance, success, and ability to fulfil its strategic objectives depend on retaining its current executives and members of its managerial staff who are experienced in the markets and business in which Immobel operates. Immobel might find it difficult to recruit suitable employees, both for expanding its operations and for replacing employees who may resign or recruiting such suitable employees may entail substantial costs both in terms of salaries and other incentive schemes.
The unexpected loss of the services of one or more of these key individuals and any negative market or industry perception arising from such loss could have a material adverse effect on Immobel's business, results of operations, financial condition, and prospects.
The conduct of its management teams, in Belgium, Luxembourg, France, Germany, Spain and Poland, is therefore monitored regularly by the CEO and the Nomination Committee, one of the organs of the Board of Directors.
In the normal course of Immobel's business, legal actions, claims against and by Immobel and its subsidiaries and arbitration proceedings involving Immobel and its subsidiaries may arise. Immobel may be subject to other litigation initiated by sellers or purchasers of properties, tenants, contractors, and subcontractors, current or former employees or other third parties.
In particular, Immobel may be subject to warranty claims due to defects in quality or title relating to the leasing and sale of its properties. This liability may apply to defects in properties that were unknown to Immobel but could have, or should have, been revealed.
Immobel may also be subject to claims by purchasers of its properties as a result of representations and warranties about those properties given by Immobel at the time of disposal.
Immobel makes sure to control these risks with a systematic policy of taking out adequate insurance cover.
Immobel is exposed to risk in terms of liquidity and financing which might result from a lack of funds in the event of nonrenewal or cancellation of its existing financing contracts or its inability to attract new financing.
Immobel does not initiate the development of a project unless financing for it is assured by both internal and external sources for the estimated duration of its development.
Immobel gets its financing from several first-rate Belgian banking partners with which it has maintained longstanding good relations and mutual trust.
Given its current and future indebtedness, Immobel is affected by a short or long-term change in interest rates, by the credit margins taken by the banks and by the other financing conditions.
Immobel's financing is mainly provided based on short-term interest rates (based on the Euribor rates for 1 to 12 months) except for the 2017, 2018 and 2019 bond issues, which are fixed rate. As part of a comprehensive risk management coverage programme, Immobel introduced a policy to implement, as appropriate, adequate coverage against the risks associated with the interest rates on its debt through financial instruments.
Feasibility studies for each project are based on the predictions for long-term rates.
Immobel is exposed to a currency exchange risk which could materially impact its results and financial position.
Following its entering in the Polish market, Immobel is subject to currency exchange risks. There is the foreign currency transaction risk and the foreign currency translation risk.
Immobel also makes sure whenever possible to carry out all of its operations outside the Eurozone in EUR, by having purchase, lease and sales contracts drawn up for the most part in EUR.
Any development project depends on obtaining urban planning, subdivision, urban development, building and environmental permits.
A delay in granting them or failure to grant them could impact on Immobel's activities. Furthermore, the granting of a subdivision permit does not mean that it is immediately enforceable. An appeal against it is still possible.
Furthermore, Immobel must respect various urban planning regulations. Local authorities or public administrations might embark on a revision and/or modification of these regulations, which could have a material impact on Immobel's activities.
Immobel has contractual relations with multiple parties, such as partners, investors, tenants, contractors, financial institutions, architects. The inability of such counterparty to live up to their contractual obligations could have an impact on Immobel's operational and financial position. Immobel pays great attention, through appropriate studies, to the choice of its counterparties.
Immobel is active in Belgium, Luxemburg, France, Germany, Spain, and Poland. Changes in direct or indirect fiscal legislation in any of these could impact Immobel's financial position.
The preparation of financial information in terms of the adequacy of the systems, the reporting and compilation of financial information, considering changes in scope or changes in accounting standards is a major challenge for Immobel, the more so given the complexity of the Group and the number of its subsidiaries. Please also note in this risk the complexity of the Immobel Group is active in Belgium, Luxemburg, France, Germany, Spain and Poland. Competent teams in charge of producing it and suitable tools and systems must be able to prevent this financial information from not being produced on time or presenting deficiencies with regards to the required quality.
On 5th January 2021 Immobel SA/NV sold 262,179 treasury shares, representing c. 2.6% of Immobel current outstanding share capital, through a private placement, to qualified international institutional investors.
To the Directors' knowledge, there should not be any circumstances likely to have any significant influence on the development of
the Company. With respect to COVID-19 on the economic circumstances and on the financial performance of the company, the Board of Directors assesses on a continuous basis the going concern assumption of the company based on a floored case which is updated on a regular basis.
Covid-19 is currently still having an impact on the activity of the company and the sector as a whole mainly with respect to progress in permitting as well as for office related commercial activities.
As a buffer against this market conditions the company has a cash position of EUR 148 million at the end of December 2020, available corporate lines of EUR 76 million, non-issued Commercial Paper for an amount of EUR 26.5 million and substantial headroom on its main debt covenants.
Based on available and committed credit lines and available cash and taking the floored case into consideration, the Board of Directors is of the opinion that the company can maintain the going concern assumption.
Immobel has invested in 2020 in knowledge on sustainability. Sustainable development, in relationship to ESG targets, is for Immobel a key element in its development strategy. Therefore, investments have been done in knowledge about carbon-neutrality and more particular geothermy. Geothermy is now used in several Immobel projects.
Immobel will continue to invest in sustainability in 2021, in all aspects of its ESG strategy.
The Board of Directors confirms that Immobel used financial instruments intended to cover any rise in interest rates.
Except Michèle SIOEN, all Members of the Audit & Risk Committee (currently composed of Pierre NOTHOMB6, Karin KOKS - van der SLUIJS, Wolfgang de LIMBURG STIRUM7 and Michele SIOEN8d) meet the independence criteria stated in art. 7:87 CCA as well as in provision 3.5 of the Code 2020 and sit on the Board of Directors and the Audit & Risk Committee of Immobel as independent Directors. All of them hold university degrees, occupy positions as Directors in international groups and, as such, hold mandates in the Audit Committees of other companies and organisations.
In as far as it is necessary, the Board of Directors reiterates:
Furthermore, the Board confirms that during the past financial year:
| number of shares | value/share | gross proceeds | identity purchaser |
|---|---|---|---|
| 800,000 shares | 65.00 EUR | 52,000,000 EUR | Private placement9 |
| 10,766 shares | 65.00 EUR | 699,790 EUR | senior management |
| 100,000 shares | 64.40 EUR | 6,440,000 EUR | ALYCHLO NV10 |
The Board of Directors reports that, during the financial year under review, the conflict-of-interest procedure prescribed by article 7:97 CCA (former article 524 of the Companies Code) has not been enforced, whereas the one prescribed by article 7:96 CCA (former article 523 of the Companies Code) has been applied during the Board of Directors of December 10th, 2020, in relation to the New Performance Share Plan applicable to some Members of the Executive Committee for the period 2020 – 2022.
The procedure related to "Corporate Opportunities" had not be enforced during the reviewed financial year.
Below an extract of the Minutes of the Board of Directors dated December 10th, 2020
"On the recommendation of the Board of Directors, a General Meeting of Shareholders has approved on May 28th, 2020 the NV Immobel SA Performance Share Plan 2020 - 2022 ("the Plan"). The Plan will grant a possibility to acquire existing or newly issued shares of Immobel to some Member(s) of the Executive Committee.
Upon the achievement of Performance Conditions, the Performance Shares that are granted under the Plan will allow the beneficiaries to participate financially in the added value and growth of Immobel. The implementation of the Plan will thus be to the advantage of Immobel, its Shareholders and the Beneficiaries of the Plan.
One Grant will occur for each of the years from 2020 up to and including 2022. The number of Performance Shares to be granted each year will be determined by the Board of Directors on the recommendation of the Remuneration Committee.
6 In his capacity of permanent representative of PIERRE NOTHOMB SRL.
7 In his capacity of permanent representative of LSIM SA.
8 In her capacity of permanent representative of M.J.S. Consulting BV.
9 with the participation of Marnix GALLE via the company A³ CAPITAL SA.
10 company of Marc COUCKE.
The Performance Conditions, to which the vesting of the Performance Shares will be subject, will be determined each year by the Board of Directors, in line with the Company Strategy. The Performance Shares will be granted for free to the Beneficiaries.
The New Performance Share Plan 2020 – 2022 proposal is based on the previous plan – except for a good and bad leaver clause - in both cases of voluntary or unvoluntary ending of their service contract, the Beneficiary loses the rights on the not yet vested Performance Shares.
It is the task of the Board, upon proposal of the Remuneration Committee to yearly set the performance conditions applicable to the PSP in its sole discretion.
The Directors discussed the Remuneration Committee's proposal to:
Regarding the Beneficiaries, only the CFO is currently eligible.
Marnix Galle declared that, as potential beneficiary of PSP awards, he has a potential conflict of interest in accordance with article 7 :96 of the BCC and will therefore leave the Meeting.
Filip Depaz also left the Meeting.
The Directors discussed the Remuneration Committee's proposal to include the other Group functions at the Executive Committee level as well as follows:
The Board of Directors indicated that the award to the Executive Chairman would represent a potential cost of 480 KEUR for the Company given the fact that it would represent 25% per year on the annual fix fee of 640 KEUR during the years 2020 – 2021 – 2022, "payable" in shares only as of 2023 – 2024 and 2025. So, 25% x 640 KEUR x 3 years = 480 KEUR in total. This is calculated at 100% result. Being understood that the result can be lower: given the fact that the multiplier is a combination of ROE and ROCE, with a maximum of 100% at target.
The award aims to further motivated the ExCo Members at Group level and therefore the Board took the view that the grant is in the corporate interest.
Resolution: Upon proposal of the Remuneration Committee, the Directors participating to the vote unanimously decided to approve the Performance Share Plan 2020 – 2022 as prepared for the already existing beneficiary (the CFO) and to extend it to the other ExCo Group level functions, being to the Executive Chairman of the Board, to the COO and to the CIO.
The Directors participating to the vote unanimously also approved the criteria and levels proposed by the Remuneration Committee, being:
The Directors mandated:
Marnix Galle and Filip Depaz joined the Meeting."
The Corporate Governance Statement is part of this Director's report.
Pursuant to article 34 of the Royal Decree of 14th November 2007 concerning the obligations of issuers of financial instruments admitted for trading on a regulated market, the Board of Directors of Immobel states that the following information could have an incidence in case of takeover bid (being understood that the other elements are currently not applicable for Immobel):
It will be proposed to you at the Ordinary General Meeting of next April 15th, to decide on the renewal of the mandate of the company M.J.S. CONSULTING bv for a period of 4 years expiring after the Ordinary General Meeting to be held in 2025.
At the same General Meeting you will have, following the resignation of DELOITTE REVISEURS D'ENTREPRISES/ BEDRIJFSREVISOREN scrl/cvba represented by Kurt DEHOORNE as Statutory Auditor of the Company with effect as from next April 15th, pursuant to Article 41 of Regulation (EU) No. 537/2014 of the European Parliament and the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, to decide upon the designation of KPMG REVISEURS D'ENTREPRISES/ BEDRIJFSREVISOREN scrl/cvba, represented by Filip DE BOCK, as Statutory Auditor, for a period of 3 years expiring at the Ordinary General Meeting to be held in 2024, for a fee of EUR 105.000 per year (excluding fees and disbursements, indexed annually).
You are reminded that the function exercised by Johan BOHETS* as Member of the Executive Committee of Immobel reached an end during the first quarter of 2020. Currently the Executive Committee is composed as follows:
* acting for a company.
* * *
We therefore ask you to approve the terms of this report and grant discharge to the Members of the Board and the Statutory Auditor.
* * *
Approved during the Meeting of the Board of Directors on March 4th, 2021.
PIERRE NOTHOMB SRL represented by Pierre Nothomb Director
A³ MANAGEMENT BV represented by Marnix Galle Executive Chair of the Board
In addition to complying with the applicable laws and regulations, Immobel sets itself high standards of corporate governance. In this framework, the Company has decided to adopt the Belgian Corporate Governance Code1 published on May 17th, 2019 (the "Code 2020") as its reference code in the meaning of article 3:6, §2, section 1 of the Belgian Companies and Associations Code (the "BCAC") and to comply with it, except regarding the following and subject to changes:
Immobel believes that its Corporate Governance Charter and the present Corporate Governance Statement reflect both the spirit and the rules of the Belgian Code 2020.
The Corporate Governance Charter describes in detail the structure of the Company's governance and its policies and procedures in matters of governance. This Charter can be consulted on the Company's website: www.immobelgroup.com.
In terms of diversity policy, Immobel's Board of Directors wishes to point out that it meets the criteria that at least one-third of the Members are of different sexes. More information on diversity is included under: III. Regulations and Procedures (see below).
This section of the Annual Financial Report contains information concerning the way Immobel put the principles of governance into practice during the past year.
1 Available on the GUBERNA website: www.guberna.be.
| Name Function |
Date first appointment |
End of term |
Professional address | Directorships in other listed companies |
|---|---|---|---|---|
| Marnix GALLE2 Executive Chair |
25/09/2014 | AGM 2022 | Regentschapsstraat 58, 1000 Brussel |
None |
| Astrid DE LATHAUWER3 (Independent) Director |
26/08/2015 | AGM 2024 | c/o Ontex BV – Aalst Office, Korte Keppestraat 21, 9320 Erembodegem |
Etablissements Fr. Colruyt – Etablissementen Fr. Colruyt NV, listed on Euronext Brussels |
| Wolfgang de LIMBURG STIRUM4 (Independent) Director |
01/01/2019 | AGM 2024 | c/o Ergon Capital Advisors SA/NV, avenue Louise 326, 1050 Brussel |
None |
| Karin KOKS - van der SLUIJS (Independent) Director |
17/11/2016 | AGM 2024 | 't Breede Weer 10, 2265 EH Leidschendam (Nederland) |
NSI N.V., listed on Euronext Amsterdam |
| Pierre NOTHOMB5 (Independent) Director |
25/09/2015 | AGM 2023 | c/o Deminor SA/NV Joseph Stevensstraat 7, 1000 Brussel |
None |
| Michèle SIOEN6 Director |
20/12/2018 | AGM 2021 | c/o Sioen Industries NV Fabriekstraat 23, 8850 Ardooie |
Sioen Industries NV, D'Ieteren SA/NV and Sofina SA, all listed on Euronext Brussels |
| Annick VAN OVERSTRAETEN7 (Independent) Director |
28/09/2016 | AGM 2022 | c/o PQ Belgium SA/NV Havenlaan 6C, 1000 Brussel |
Financière de Tubize SA, listed on Euronext Brussels |
3 In carrying out the functions concerned in the present report, Astrid DE LATHAUWER acts as the permanent representative of the company ADL CommV. 4 In carrying out the functions concerned in the present report, Wolfgang de LIMBURG STIRUM acts as the permanent representative of the company LSIM
SA. 5 In carrying out the functions concerned in the present report, Pierre NOTHOMB acts as the permanent representative of the company Pierre Nothomb SRL.
6 In carrying out the functions concerned in the present report, Michèle SIOEN acts as the permanent representative of the company M.J.S. Consulting SRL.
7 In carrying out the functions concerned in the present report, Annick VAN OVERSTRAETEN acts as the permanent representative of the company A.V.O.
2 In carrying out the functions concerned in the present report, Marnix GALLE acts as the permanent representative of the company A³ Management SRL.
The curriculum vitae can be summarized as follows:
Marnix GALLE, 57, after studying economics at Tulane University in New Orleans, Louisiana, USA, Marnix began his professional career in 1987 at Cegos Belgium as a consultant. In 1989, he took his first steps in the real estate sector (family portfolio). His own company Allfin (°2001) became one of the leading real estate developers in Belgium. In 2014, Allfin Group took a 29% stake in Immobel, listed on Euronext since 1863. Following the merger between Allfin Group and Immobel in 2016, he became its Executive Chair and has been chairing Urban Land Institute (ULI) Europe since July 1st, 2020. He also is a director, member and trustee of several leading European and American associations.
Astrid DE LATHAUWER, 57, holds degrees in International Politics and Diplomatic Sciences (KU Leuven), a Bachelor in History of Art (RU Ghent) and completed an Executive MBA at Stanford, California. She brings over 30 years of Human Resources experience in Belgium and abroad for companies such as Proximus, AT&T and Monsanto. Since 2014, she is the Executive Vice-President Human Resources, and member of the Management Committee, at Ontex. In addition to her mandate as Independent Director and Chair of the Remuneration Committee at Immobel, she also serves on the Board of Colruyt, a Retail company listed on the BEL20, as an Independent Director and Chair of the Remuneration Committee, since 2011.
Wolfgang de LIMBURG STIRUM, 49, obtained an MBA from the University of Chicago, Booth School of Business (USA), a Bachelor in Commercial Engineering and a Master in Applied Economics and Business Administration from the Louvain School of Management. During his 20 years of experience in finance and private equity in Europe and the US, he has invested in numerous sectors, including healthcare, speciality chemicals, niche industries, services, leisure and media. Since 2005, he has been a Managing Partner of Ergon Capital, a mid-market private equity investment company with more than EUR 1.5 billion under management. Prior to this, he had spent most of his career in investment banking (mergers and acquisitions) at Lehman Brothers in New York and London, where he became co-head of the European M&A Healthcare team. He is currently also Director of Haudecoeur, Telenco, Sausalitos, Opseo, SVT, Stationary Care Group and VPK Group.
Karin KOKS - van der SLUIJS, 52, holds a Bachelor's degree in Commercial Economics from the Hoge School voor Economische Studies in Rotterdam, a Master's degree in Business Economics from Erasmus University in Rotterdam and is a Chartered Financial Analyst. She brings over 27 years of experience, having served in numerous leadership roles across the real estate space. She most recently managed her own international real estate and management consultancy business, wherein she served on various supervisory boards for both listed and private equity real estate companies. She currently holds the position of Managing Director, Portfolio Management in Europe with Greystar. Apart from her directorship for Immobel, she is a supervisory board member with NSI, a listed company in the office sector in the Netherlands.
Pierre NOTHOMB, 58, holder of a degree in Applied Economic Sciences (UCL Louvain-la-Neuve), he joined Deminor more than 30 years ago when it was founded, and has several mandates as a Director of companies or associations including ForSettlement (Fortis), Kimbal, Imperbel, Epsylon and various companies in the Deminor group. He is a member of the audit committee of Imperbel and the network of psychiatric care of La Ramée - Fond'Roy. Before joining Deminor in 1991, he worked as a senior auditor at Coopers & Lybrand (now PricewaterhouseCoopers), and subsequently as a financial consultant at Petercam Securities.
Michèle SIOEN, 56, holder of a Master's degree in Economics and completed management programmes at Vlerick Business School, among others. Mrs Sioen is the CEO of Sioen Industries, a listed Belgian group specialising in the production of technical textiles and professional protective clothing. She was Chair of the FEB between 2015 and 2017 and is now Honorary Chair. In addition to her daily involvement with Sioen Industries, she is also a director of various Belgian listed companies, including D'Ieteren and Sofina, as well as associations such as Fedustria and Vlerick Business School. Finally, she is closely involved in Art and Culture through her Chairship of KANAL and as a member of the Board of Directors of the Queen Elisabeth Music Chapel.
Annick VAN OVERSTRAETEN, 55, holder of a degree in Economic Sciences (KUL - 1987) and a Master's degree in Management (IAG-UCL - 1992). She began her career at Philips in 1987 as a project manager in the HR department. Between 1991 and 1999, she worked in the retail sector, in particular in the textile sector (New-D, Mayerline). She then worked as Commercial & Marketing Director at Confiserie Leonidas (1999-2004). From 2004 to 2009, she was the Operational Director of Quick Restaurants Belux NV. From 2010 until 2020, she occupied the position of CEO and Director of Lunch Garden Group. In 2020, she was appointed CEO at Le Pain Quotidien. She is an independent Director of QSR Belgium NV/SA, Financière de Tubize SA/NV, as well as of Euro Shoe Group NV.
Pursuant to article 16 of the Articles of Association, the Board is convened by the Chair of the Board of Directors, the Managing Director or by two Directors.
The Board meets at least four times a year. This frequency enables, among other things, to review the half-yearly accounts in September, the annual accounts in March, as well as the budgets in December. Moreover, additional meetings may be organized at any time, with reasonable notice, whenever it is deemed necessary or advisable for its proper functioning.
In 2020, the Board met on six occasions.
Early March 2020, the Board of Directors finalized its internal evaluation review started end 2019. Although the review identifies some opportunities for improvement, it confirmed that the Board is operating effectively and achieves a balance between governance, strategic and operational matter.
The Audit & Risk Committee shall have at least the following roles:
The Charter foresees that the Audit & Risk Committee is made up of at least three members, which are all non-executive Directors and of which a majority are independent Directors. At least one member is competent in accounting and auditing matters. Since the entry into force of the Law of December 7th, 2016, the Chair of the Audit & Risk Committee is appointed by the Board of Directors himself and may not be the Chair of the Board of Directors.
The Board of Directors ensures that the Audit & Risk Committee has enough relevant expertise to fulfil its role effectively, notably in accounting and audit matters.
Pierre NOTHOMB, Chair, Karin KOKS - van der SLUIJS, Michèle SIOEN, and Wolfgang de LIMBURG STIRUM8, Members.
In 2020, the Audit & Risk Committee met four times, at the request of its Chair.
8 Since April 17th, 2020.
The task of the Remuneration Committee consists of:
The Remuneration Committee consists exclusively of independent Directors with an expertise in remuneration matters. A non-executive Director chairs the Remuneration Committee.
Astrid DE LATHAUWER, Chair, Annick VAN OVERSTRAETEN, and Pierre NOTHOMB, Members.
In 2020 the Remuneration Committee met four times, at the request of its Chair.
The task of the Nomination Committee consists of:
The Nomination Committee consists of a majority of independent non-executive Directors.
The Chair of the Board chairs the Committee. The Chair can be involved but cannot chair the Nomination Committee when dealing with the appointment of his successor.
Marnix GALLE, Chair, Astrid DE LATHAUWER, and Annick VAN OVERSTRAETEN, Members.
In 2020, the Nomination Committee met two times, at the request of its Chair.
The Investment Committee is in charge of:
The Board of Directors has delegated to the Executive Committee the power to approve all decisions relating to the acquisition, development, syndication and divestment of assets, or in case of an asset developed in partnership or syndicated with a third party, the pro rata share of the Company therein, up to an estimated total investment cost of 70 MEUR per asset (which shall include the acquisition price and total development costs, such as construction costs, financing costs and fees payable to third parties).
The Board of Directors further has delegated to the Investment Committee the power to decide on and approve all acquisitions, development, syndication and divestments of assets, or in case of an asset developed in partnership or syndicated with a third party, the pro rata share of the Company therein, up to an estimated total investment cost of MEUR 200 per asset (which shall include the acquisition price and total development costs, such as construction costs, financing costs and fees payable to third parties).
The Chair of the respective Committees will inform the Board of Directors on the investment decisions so taken at the next Board of Directors' meeting.
The Investment Committee consists of at least four members, including especially the Executive Chair, who is also its Chair.
Marnix GALLE, Chair, Karin KOKS – van der SLUIJS, Alexis PREVOT9, Chief Investment Officer, Thierry VANDEN HENDE, and Piet VERCRUYSSE, Members.
In 2020 the Investment Committee met eight times, at the request of its Chair.
9 In carrying out the functions concerned in the present report, Alexis PREVOT acts as the permanent representative of the company AP2L SRL.
The Executive Committee of the Company is composed of the Executive Chair and of the Members of the Executive Committee (as mentioned on the website of the Company). The Committee is primarily in charge of following tasks:
Composition (as per December 31st, 2020):
Marnix GALLE, Chair, Karel BREDA10, Chief Financial Officer, Filip DEPAZ11, Chief Operating Officer, Alexis PREVOT, Chief Investment Officer, Fabien ACERBIS, Managing Director Immobel France, Olivier BASTIN, Managing Director Immobel Luxembourg and Adel YAHIA12, Managing Director Immobel Belgium, Members.
The Members of the Executive Committee are not related to each other.
10 In carrying out the functions concerned in the present report, Karel BREDA acts as the permanent representative of the company KB Financial Services SRL.
11 In carrying out the functions concerned in the present report, Filip DEPAZ acts as the permanent representative of the company Filip Depaz Consultancy SRL.
12 In carrying out the functions concerned in the present report, Adel YAHIA acts as the permanent representative of the company Adel Yahia Consult SRL.
The "curriculum vitae" of the Members of the Executive Committee in function (except for Marnix GALLE already listed above) can be summarized as follows:
Karel BREDA, 46, after studying Applied Economics at the KU Leuven and obtaining an MBA from the University of Chicago, Booth School of Business, Karel began his professional career in 1999 by developing a number of internet startups in Europe. In 2002, he joined GDF Suez (now Engie), where he held various managerial positions in M&A and Project Finance in Europe, South Asia, the Middle East and Africa. In 2011, he was promoted to Chief Financial Officer for the South Asia, Middle East and Africa region based in Dubai and in 2014 for Engie E&P in the Netherlands. Prior to joining Immobel on 1 August 2018, Karel was Managing Director Middle East, South and Central Asia and Turkey for Engie Solar based in Dubai and India.
Filip DEPAZ, 51, began his professional career with Citibank and continued in the financial departments of the federal Ministry of Civil Service and the Flemish Region. In 1999, he joined Swiss Life, where he became an Accounting Manager in the finance department. In the meantime, he earned a diploma in Financial Accounting (2005) from Ehsal Management School and completed the Middle Management Program at Vlerick Business School (2008). That same year, he joined the Swiss Life International Employee Benefits division in Luxembourg as a programme manager. In 2012, he returned to Belgium to become COO of Delta Lloyd Life, where he became CEO in 2016. Following the acquisition of Delta Lloyd Life by NN Insurance, he was appointed Integration Lead and COO of the merged company, a position he held until the end of May 2019. He joined Immobel on 1 August 2019. Filip is a commercial engineer (KUL).
Alexis PREVOT, 46, after studying Urban Engineering at the École des Ingénieurs de la Ville de Paris (EIVP), Alexis began his career as a commercial engineer in the Bouygues group, where he specialised in Design Build, Finance and Operate (DBFO) regulations. In 2000, he started working as a senior consultant in the Real Estate and Capital Project Management Practice at PriceWaterhouseCoopers. With his MBA from the London Business School in 2006, Alexis joined the M&A Real Estate team of Lehman Brothers in London and Frankfurt, which focused on large European real estate companies through Investment Banking and Capital Markets. Prior to joining Immobel in 2019, Alexis was senior portfolio manager in the European investment team of Abu Dhabi Investment Authority's Real Estate and Infrastructure department.
Adel YAHIA, 42, joined Immobel in December 2017 as Chief Operating Officer responsible for the Development, Technical, Sales and Landbanking departments. Prior to that, he worked at AG Real Estate as head of the Residential department and co-Head of Development. Between 2010 and 2015, he was responsible for various business units at Matexi. He started his career in 2004 as a real estate developer and also worked in real estate investment banking. After studying law at the KU Leuven and holding a Master's degree in General Management (PUB) from Vlerick Business School, he graduated in 2006 with a Master's degree in Real Estate (postgraduate programme in Property Studies) at the KU Leuven. In 2014, he completed the "Executive Program in Real Estate" training at Solvay Business School (ULB). He has been a lecturer at KU Leuven since 2010 and at Solvay Business School since 2015.
Fabien ACERBIS, 48, as graduate of the ESTP, an international reference school for construction, Fabien began his career in 1997 at Bouygues Construction before joining SCIC, a subsidiary of Caisse des Dépôts, specialising in Associate Project Management, in 1999. In 2004, he joined Bouygues Immobilier as a service centre manager in Île-de-France, where he then became regional director for Île-de-France Nord and then regional director for Île-de-France Est in 2012. Managing Director of Bouygues Immobilier's Subsidiaries and Investments in France since 2014, he became General Manager of Housing in the Ile-de-France Region in 2017. In the autumn of 2019, he joined Immobel as Director-General France.
Olivier BASTIN, 50, began his career in the banking sector (BACOB, 1994-1995) before joining the real estate department at Intermarché, where he contributed to the expansion of the brand in Wallonia (1995-1996). In 1997, he joined Jones Lang LaSalle, where he became the department head of the Office Department for Belgium (1997-2005) before becoming Managing Director of the group's Luxembourg branch (2005-2011). In 2010, he combined this position with that of Head of Capital Markets for the Belux. He left JLL at the end of 2011 to join Allfin Group as CEO of the Luxembourg entity. Since 2018, he is also in charge of the introduction and expansion of Immobel on the German market. Olivier has a degree in Applied Economics (ULG, 1988-1992) and an MBA (ULG & Maastricht University, 1993-1994).
The Executive Committee has established Teams in each country that assist it in the practical implementation of the executive powers (the "Management Teams"). Their creation has been approved by the Board of Directors. The Executive Committee determines the assignment of the Management Teams, their composition, and their responsibilities. These Management Teams are accountable for the exercise of their powers vis-à-vis the Executive Committee.
Adel YAHIA, Managing Director, Chair, Alain DELVAULX, Head of Financial Planning & Analysis, Filip DEPAZ, Chief Operating Officer, Stephanie DE WILDE13, Head of Legal Services, Inge HEYVAERT14, HR & Talent Manager, Thierry LEDOUX15, Head of Technical Department, Marnix MELLAERTS16, Head of Sales, Joëlle MICHA17, Head of Corporate Affairs, Eric SCHARTZ18, Head of Immobel Home, Olivier THIEL19, Head of Development, Hans VAN AUDENAERDE20, Head of Acquisitions, Investments & Financial Advisory, Valentine VAN MALLEGHEM, Head of Residential Projects Advisory, and Lian VERHOEVEN21, Head of Corporate Communications.
Olivier BASTIN, Managing Director, Chair, Maxime DIERICKX, Head of Finance, Nicolas ECTOR, Head of Technical, Valérie FLAUS, Head of Legal Services, and Muriel SAM, Head of Development.
Fabien ACERBIS, Managing Director, Chair, Julien MICHEL, Managing Director Tertiaire, Mathieu CHAMARD-SABLIER, Directeur opérationnel Résidentiel, Yves EVEILLARD, Directeur Département technique, Carole FELICI, Directrice RH, Gérald FRUCHTENREICH, Directeur Financier. Philippe MARTINHO, Directeur des Ventes, Marie SUDRE, Directrice Département juridique, and Sandrine THIEBAUT, Directrice de la relation Clients,
13 Permanent representative of the company Lady at Work SRL.
14 Permanent representative of the company HDS Consulting SRL.
15 Permanent representative of the company GABALEX SRL. 16 Permanent representative of the company H&J Trust SRL.
17 Permanent representative of the company JOMI SRL.
18 Permanent representative of the company DREAMS SRL.
19 Permanent representative of the company Queen-K SRL.
20 Permanent representative of the company AUDIUS SRL.
21 Permanent representative of the company LV Communications SRL.
Olivier THIEL22, Managing Director, Marcin CHARCHUT, Head of Legal, and Andrzej PLATEK, Chief Financial Officer,
Marnix GALLE, Executive Chair of the Board – Immobel Group,
Olivier BASTIN, Managing Director Immobel Luxembourg – in charge of Immobel Group expansion in Germany, and Michael HENN, Managing Director of Immobel Germany.
The Belgian legislative framework for internal controls and risk management consists in the Law of 17 December 2008 (in application of the European Directive 2006/43 concerning corporate financial control), the Belgian Code 2020 and Law of 6 April 2010 (CG Law).
The IFRS 7 likewise defines additional requirements with regards to management of risks related to financial instruments. Nevertheless, the current Belgian legislative and normative framework specify neither the model of internal control to which the companies for which it is intended should conform, nor the modalities for implementing it (level of detail required).
Immobel uses a system of risk management and internal control that was drawn up internally based on the "COSO23" model of internal control.
The COSO methodology is organized around five elements:
The element "internal control environment" focuses on the following components:
Immobel is the largest listed real estate developer in Belgium. The Group, which dates back to 1863, creates high-quality, future-proof urban environments with a positive impact on the way people live, work and play, and specializes in mixed real estate. With a stock market value of over EUR 650 million and a portfolio of more than 1,600,000 m² of project development in 6 countries (Belgium, Grand Duchy of Luxembourg, Poland, France, Spain, Germany), Immobel occupies a leading position in the European real estate landscape. The group strives for sustainability in urban development. Furthermore, it uses part of its profits to support good causes in the areas of health, culture and social inclusion. Approximately 200 people work at Immobel.
For more information, please visit www.immobelgroup.com
Immobel has a Board of Directors, an Investment Committee, an Audit & Risk Committee, a Remuneration Committee, a Nomination Committee and an Executive Committee.
Responsibility for Immobel's strategy and for the oversight of its activities belongs primarily to the Board of Directors. The main responsibilities of the different Committees have been mentioned above (cfr. Decision-making bodies).
22 Permanent representative of the company Queen-K SRL.
23 Abbreviation of "Committee of Sponsoring Organizations of the Treadway Commission".
Immobel takes a prudent attitude in managing its portfolio of diversified projects that create long-term value through its lines of activity.
Immobel has a Good Behaviour Code that describes the principles of ethics and integrity that apply to each of the Directors and the Members of the Executive Committee as well as all the employees and external collaborators. This Code deals with aspects of conflict of interest, professional secrecy, corruption, and misuse of corporate funds and even business gifts. Immobel has also a Dealing and Disclosure Code the main purpose of which is, among others, to ensure that Persons Discharging Managerial Responsibilities do not misuse, or place themselves under suspicion of misusing certain price sensitive information, ("Inside Information" as defined in the Dealing and Disclosure Code). Certain obligations are also imposed on persons closely associated with them (such as certain of their relatives or entities controlled by them). Compliance with these Codes is monitored by the Compliance Officer.
See also point C. "Control Activities", below.
Immobel regularly carries out risk identification and evaluation exercises. They are mapped out and formal action plans are drawn up to deal with those risks for which the level of control is deemed to be inadequate. The Audit & Risk Committee monitors the implementation of these action plans.
The principal risks to which Immobel is exposed are set out in detail in section I.B of the Directors' Report.
The control activities correspond to the regulations and procedures used to deal with the principal risks identified. Here are the main regulations and procedures established within Immobel, we would like to mention:
Immobel uses an appropriate software program as its financial management information system. The maintenance and development of this system is subcontracted to a partner.
Data continuity is also subcontracted to a partner who is contractually bound to follow a strict procedure to establish a reliable and secure information storage system.
The finance department of IMMOBEL is in charge of the closure process and drafting the Annual Report, the Consolidated Financial Statements drawn up according to IFRS standards and the Annual Accounts.
Communication with the personnel and the various employees of IMMOBEL is appropriate to the size of the business. It is based mainly on work sessions, verbal communications from the management to the personnel as a whole, or internal e-mail notes signed mostly by the Chief Executive Officer.
The Audit & Risk Committee is responsible for supervising internal control. Given the increased size and the activities of the Company and the Group, the Audit & Risk Committee will further assess in 2021 the necessity to create a position of internal auditor to assist it in this mission.
In order to evaluate the control environment regularly, the Audit & Risk Committee entrusts the auditor with certain specific missions involving more thorough examination of internal control, consisting of testing the existing controls and identifying possible weaknesses. The Audit & Risk Committee ensures that the recommendations are implemented if the need arises.
During the financial year 2020, there were no transaction between Immobel (associated companies included) and a Member of its Management Team and no transaction between Immobel and its Directors, its Members of the Executive Committee, or its other Staff Members.
Under the new provisions of the said Act, Immobel specifies that the diversity policy applied in all company bodies goes beyond gender. Age and skills are also considered.
Immobel's Corporate Governance Charter states that the composition of its Board of Directors guarantees decision-making in the interest of the company. To this end, the Board of Directors is attentive to gender diversity and diversity in general, as well as complementarity of skills, experiences, and knowledge. The provisions of article 7:86 of the Belgian Companies & Associations Code relating to gender diversity are respected in this regard.
Currently the Board of Directors is composed of seven Members. Following its adherence to the Corporate Governance principles contained in the Belgian Corporate Governance Code 2020, and more particularly provisions 3.1 and 3.3 of the said Code, the Board of Directors believes that this number is sufficiently small to allow for effective decision-making and sufficiently broad to ensure that its Members bring experience and knowledge in different areas and that changes in its composition are managed without disruption. Indeed, the Board of Directors shares the European Commission's view that diversity feeds debate, promotes vigilance, and raises the stakes within the Board. The quality of decisions is improved.
Following the diversity policy in force at Immobel during the year under review, the breakdown of the composition of the Board of Directors is as follows (per 31st December 2020):
Immobel recognises its talented and diverse workforce as a key competitive advantage in the Real Estate business. Being successful as a company requires the quality and skills of all the employees and collaborators.
Immobel recognises that everyone brings its own experience and capabilities in their field of expertise. This diversity is a key element in being successful at all levels of the company. Diversity is recognised within Immobel as a business interest, leading to better overall performance and to high quality products, services, and business decisions.
Immobel strives to create a supportive environment where everyone can realise its full potential within Immobel, regardless of their differences. Immobel strives to employ the best employees and collaborators in their field of expertise to do the best job possible.
Immobel values the importance of reflecting the diversity of our customers and markets in its workforce. This diversity encompasses differences in gender, language, ethnicity, age, sexual orientation, religion, socio-economic status, experience, and education.
Immobel gives equal opportunities to individuals, regardless of their background, in its recruitment, retention and talent management in general. The diversity of the teams in all its aspects is a source of innovation, growth, and prosperity.
Immobel commits to:
Immobel considers the development of its staff as a priority. It ensures the motivation and involvement of its staff and ensures that they always have the skills required for the success of their assignments.
In other words, Immobel's HR ambition reflects its promises: improving and developing the Group's human capital, rich in diversity, through an open and innovative human resources policy and thus creating opportunities for everyone and building the future for its staff and customers.
Following this diversity policy that Immobel implemented in the year under review, the breakdown of the Immobel operational teams, in the six countries, is as follows (per 31st December 2020):
As part of its diversity policy, Immobel promotes diversity at all levels (operational teams, members of the Management Team, Members of the Executive Committee & Directors).
The Dealing and Disclosure Code intends to ensure that Directors, senior executives and other staff of Immobel and affiliated entities do not misuse information which they may have about Immobel and which is not available to other investors.
These rules have been supplemented by an internal note summarizing the main legal obligations in this matter, particularly considering the new Regulation on Market Abuse as entered into force on July 3rd, 2016, with a view to increasing an awareness of their obligations in those concerned.
The Compliance Officer is entrusted with ensuring compliance with said rules to reduce the risk of abuse of the market by insider trading. The Compliance Officer keeps lists of people who have or are liable to have privileged information and who have access to, may have access to or cannot reasonably be unaware of the privileged nature of this information.
These rules provide, among others, in:
During the past financial year, the job of Compliance Officer at Immobel was carried out by Joëlle MICHA. Application of the rules cited above has not given rise to any difficulty.
The Board of Directors of Immobel assesses that, except those disclosed in the Note 32 to the Consolidated Financial Statements "Main contingent assets and liabilities", no governmental, legal or arbitration proceeding exists that reasonably may have, or have had in the recent past, significant effects on the financial position or profitability of the Company.
Based on the transparency declarations received by Immobel, following shareholders are the most important (since January 7th, 2021):
| Shareholder | Voting rights | % of the gross number of shares24 |
|---|---|---|
| A³ Capital NV (and a related company)25 having its registered seat at 1020 Brussel, Abelenlaan 2 |
5,892,418 | 58.94 % |
| Immobel SA/NV (own shares / Treasury shares) having its registered seat at 1000 Brussel, Regentschapsstraat 58 |
30,348 | 0.3 % |
There are no special voting rights and, to the extent known by the Company, no shareholder agreements. Further to a decision of the Board of Directors, the dividend rights of the treasury shares kept by Immobel are suspended. In application of the Belgian Companies and Associations Code, these shares have no voting rights.
During the General Meeting of May 28th, 2020, the Shareholders have authorized the Board of Directors:
• to increase the Company's capital by a maximum amount of 97,000,000 EUR, in one or more occasions, dates and manner to be determined by the Board of Directors, and for a term of five years from the publication of this authorization in the Belgian Official Gazette.
The Company may acquire or take as security its own shares under the conditions determined by the law. The Board of Directors is authorized to sell, on the stock exchange or outside, at the conditions it determines, without prior authorization of the General Meeting, in accordance with the law.
This authorization also applies to the acquisition of shares of the Company by a direct subsidiary according to article 7:221 of the Belgian Companies and Associations Code.
The Board of Directors has full powers to cancel the shares acquired by the company in this way, to have the cancelation certified by notarial act and to amend and coordinate the Articles of Association to bring them into line with the decisions taken.
The rules governing the appointment and replacement of Directors and the amendment of the Articles of Association shall be those provided by the Belgian Companies and Associations Code, as well as by the Corporate Governance Charter of Immobel.
The terms of change of control contained in credit agreements with financial institutions were approved by the General Meeting of 28th May 2020, pursuant to article 7:151 of the Belgian Companies & Associations Code.
24 A gross number of 9,997,356 shares were issued.
25 Companies controlled by Marnix GALLE.
The Statutory Auditor is Deloitte Reviseurs d'Entreprises, represented by Kurt Dehoorne, which is headquartered at 1930 Zaventem, Gateway building, Luchthaven Nationaal 1J. Flat fees of Deloitte Reviseurs d'Entreprises charged to Immobel SA for the examination and review of statutory and consolidated accounts amounted to 139 KEUR (excluding VAT). His fee for the review of the statutory accounts of subsidiaries amounted to 144 KEUR (excluding VAT).
Total fees charged by the Statutory Auditor and his network in 2020 in the exercise of the mandate on Group level amounted to 429 KEUR (excluding VAT).
BNP Paribas Fortis Bank is the Central Paying Agent of Immobel for an indefinite period. The remuneration of the commission amounts up to 0.20 % of the net amount (VAT excluded) of the coupon and of the income securities presented in a securities account.
Agreed during the Board of Directors of March 4th, 2021.
Pierre Nothomb srl Director (represented by Pierre Nothomb)
A3 Management bv Executive Chair of the Board (represented by Marnix Galle)
We have great pleasure in presenting Immobel's Remuneration Policy for the next four years. This Policy is in line with and contributes to Immobels business strategy, long-term interests and sustainability.
This new Remuneration Policy replaces the Remuneration Policy for Directors and members of the Executive Committee as described in the Corporate Governance Charter of Immobel, Annex 2 "Remuneration Policy and evaluation of the performance", as published on January 7th 2021 (see website www.immobelgroup.com for full details).
It is important that Immobel is able to attract Directors and members of the Executive Committee with the ability, experience, skills, values and behaviours to deliver on the Company's strategy and goals and support Immobel's purpose. Immobel strives to have a diverse composition of both bodies with regards to gender, ethnicity, and generation.
The Board of Directors determines the remuneration of the Directors and the Executive Committee in accordance with the provisions of the Belgian Companies and Associations Code and the Corporate Governance Code, while respecting the prerogatives of the general shareholders' meeting. Levels of remuneration should be sufficient to attract, retain and motivate Directors and members of the Executive Committee who have the profile determined by the Board, to promote the achievements of strategic objectives in accordance with the Company's risk appetite and behavioural norms and to promote sustainable value creation. The non-executive Directors do not receive any performance related remuneration that is directly related to the results of the Company. With regard to the remuneration of the non-executive Directors and the members of the Executive Committee, the Remuneration Committee makes detailed proposals to the Board of Directors. When making proposals on the remuneration of members of the Executive Committee, the Remuneration Committee observes the following principles:
The level and structure of the remuneration of the non-executive Directors are determined based on their general and specific responsibilities and market practice. This remuneration includes a basic fixed remuneration and an attendance fee for the participation in the meetings of the Board, as well as for their participation to one or more Committees of the Board or for each chairmanship of a Committee.
Below you will find the summary table containing the remunerations applicable during the financial year 2021:
| Board of Directors | Chairman = None |
|---|---|
| Director: | |
| 20,000 EUR (yearly forfait) | |
| 2,100 EUR / physical meeting | |
| 1,050 EUR / phone meeting | |
| Audit & Risk Committee | Chairman: |
| 3,100 EUR / physical meeting | |
| 1,050 EUR / phone meeting | |
| Members: | |
| 2,100 EUR / physical meeting | |
| 1,050 EUR/ phone meeting | |
| Investment Committee | Chairman = None |
| Members: | |
| 2,100 EUR / physical meeting | |
| 1,050 EUR / phone meeting | |
| Nomination Committee | Chairman = None |
| Members: | |
| 1,050 EUR / physical meeting | |
| 525 EUR / phone meeting | |
| Board of Directors | Chairman: |
| 1,200 EUR / physical meeting | |
| 525 EUR / phone meeting | |
| Members: | |
| 1,050 EUR / physical meeting | |
| 525 EUR/ phone meeting |
The Company reimburses the Directors' international travel and accommodation expenses for attendance at the meetings and the exercise of their functions in the Board of Directors and its Committees. Furthermore, the Company ensures it takes the usual insurance policies to cover the activities that the Directors carry out within the scope of their mandates.
Non-executive Directors receive no annual bonus, nor share options, nor participation in retirement plans. They are not entitled to any kind of compensation when their mandate ends.
Notwithstanding Provision 7.6 of the Code, the non-executive Directors are not partly remunerated in the form of shares in the Company. Nevertheless, the Board of Directors has invited all Directors to invest an amount of at least EUR 20,000 (being the fix annual remuneration) in shares of the Company and to keep them at least one year after the end of their mandate.
The awarded remuneration to the members of the Executive Committee can include a basic (fixed) remuneration, a variable remuneration (short term incentives (hereafter "STI"), long term incentives (hereafter "LTI", cash), bonuses (extra guaranteed yearly bonus, signing bonus), Performance Share Plans and other benefits in whatever form (contribution for vehicle expenses, health insurance).
The variable remuneration STI of the members of the Executive Committee (including of the Chairman / CEO) is equal to 50 % of the fixed remuneration, if all the objectives (quantitative and qualitative) have been realised for 100 %.
The variable remuneration is partly based on quantitative aspects and partly based on qualitative aspects.
The weight for members exercising a Group Function is 80% quantitative – 20% for qualitative criteria, while the percentage for members exercising Country Managing Director function is 50 % - 50 %.
In case the quantitative results on Group level exceed the target set out by the Board of Directors, upon proposal of the Remuneration Committee, the variable remuneration can exceed 100% of the total variable remuneration foreseen. As a result of this, the variable remuneration can be higher as 50% of the fix remuneration.
In case the quantitative results on Group level are below the predefined threshold target set out by the Board of Directors, upon proposal of the Remuneration Committee, the quantitative component of the variable remuneration will be equal to 0.
Insofar as necessary, it is recalled that following the Extraordinary General Meeting of November 17th, 2016, it has been expressly provided in the articles of association that Immobel may, if that the variable remuneration of persons falling within the scope of articles 7:91 paragraphs 1 and 2 and the last paragraph of 7:121 of the Code of Companies and Associations, amounts to more than 25% of their respective annual remuneration, derogate from the said provisions.
The Remuneration Committee can propose exceptions to these rules, based on business logic. Exceptions to above mentioned rules can only be given upon proposal of the Remuneration Committee, and decision by the Board of Directors.
Furthermore, the members of the Executive Committee, exercising a Group function, are awarded a variable remuneration LTI (Long-term Incentive), being a "Performance Shares".
The members of the Executive Committee, exercising a role of Managing Director (hereafter "MD") of a country, can benefit from a Long Term Incentive Plan (hereafter "LTI"), based on outperformance of the business unit (details below).
Immobel wants to attract talented employees / collaborators, who combine expertise and passion for the Real estate Development business and strive to make the business grow, taking into account the governance and working procedures Immobel has put in place. Therefore Immobel pays competitive salaries. Immobel can reward employees / collaborators with Performance bonuses, if the companies performance allows it, and depending on individual performance and the market practice, where Immobel is operating.
For collaborators of Immobel, the remuneration package is composed of a competitive fix salary, rewarding their skills, expertise and experience, and if the results of the Company allow it, a variable remuneration, rewarding specific quantitative or qualitative targets.
A yearly target setting and appraisal cycle, defines the targets for each collaborator. An intermediate appraisal and final year end appraisal process assesses the targets and actual results for all collaborators, which may lead to a variable remuneration, based on this process.
The criteria for the award of variable remuneration are either of quantitative nature, either of qualitative nature. Each year the Board of Directors on proposal of the Remuneration Committee, determines the criteria and parameters to be applied on the variable remuneration.
The applied criteria to determine the variable Short Term Incentive remuneration of the Executive Chairman / CEO include, on the one hand, the Return on Equity (ROE) as quantitative criterion and, on the other hand, some qualitative criteria. These criteria change on a year-to-year basis. The Executive Chairman / CEO can also benefit from a Performance Share Plan, for which the underlying drivers are, as of 2020, the ROE of the Company and the ROCE of the Company.
The variable remuneration (STI) of the other members of the Executive Committee includes:
Furthermore, the members of the Executive Committee, exercising a Group function, are awarded "Performance Shares" (LTI). The quantitative criteria applicable to this remuneration are, on the one hand, based on the predefined performance targets based on the average return on equity over three years and the average net income per share (excluding Treasury Shares) over three years (Performance Share Plan 2017 - 2019), as well as, on the other hand, based on the predefined performance targets based on the average Return on Equity over three years and the average Return On Capital Employed (ROCE) over three years (Performance Share Plan 2020 - 2022).
The members of the Executive Committee, exercising a role of Managing Director (hereafter "MD") of a country, can benefit from a Long-Term Incentive Plan (hereafter "LTI"), based on outperformance of the business unit. To benefit from this LTI, the ROE on local level needs to exceed 15% of the ROE (strategic threshold of the Company). A % of the Excess profit , above 15% of the ROE, can be granted to the MD's of the countries. This LTI is partially paid in cash, partially allocated in shares, which need to be held for 3 years after allocation (vesting period).
The above mentioned criteria express on the one hand financial criteria and drivers of how the business is steered (Return on Equity, Return on Capital Employed, Excess Profit,..). On the other hand in the qualitative criteria targets are defined which make the Company stronger on the short, medium or longer term. Following themes can be mentioned: feeding the pipeline of projects, obtaining building permits, delivering projects on time, implement quality plan on a defined topic, improve business, financial, control or support processes, manage and improve sustainability aspects of the business (being it environmental, social or governance wise).
To stimulate sound risk management and sustainability, part of the variable remuneration is not vested immediately and can only be paid out after 3 years. To retain talent, the Company has also chosen only to vest these elements of the variable remuneration if the beneficiary is still active for Immobel.
Each year, at the proposal of the Remuneration Committee, the Board of Directors decides on the objectives of the Executive Chairman / CEO and the Executive Committee for the coming financial year and evaluates their performance for the period ending, in conformity with the procedure currently in place. This performance evaluation is also used to determine the variable part of their annual remuneration.
There is no specific right to recover the variable remuneration awarded based on incorrect financial information; common law will apply. The Performance Share Plans contain a Claw Back Clause. The variable remuneration ("Short Term Incentive") will be paid to the members of the Executive Committee/ Executive Director after the Board of Directors which draws up the Annual Accounts of the reviewed financial year, subject to final approval by the Ordinary Shareholders' Meeting.
The "Performance Shares" awarded to some members of the Executive Committee in application of the "Performance Share Plan 2017 - 2019" and of the "Performance Share Plan 2020 - 2022" will vest definitively after a period of three full calendar years if they meet the predefined performance targets over three years. Pursuant to Article 8.1 of the Plan these Performance Shares are forfeited for beneficiaries of the plan who are no longer employed by the Group and who have not yet been acquired Performance Shares "the holder of Performance Shares who terminates his management services contract with the Company early or whose management services contract is terminated for cause because of the holder of Performance Shares, loses his Performance Shares that are not yet vested on the day of the written notice or notification of departure or termination."
The share-based remuneration intends to contribute to Immobel's business strategy, long-term interests, and sustainability by incentivizing the beneficiaries to create shareholder value, in line with immobel's processes and procedure of its Governance framework.
According to the Articles of Association of Immobel, the mandates of the Directors are fixed for a maximum period of four years but may be renewed.
The duration of the service provision contract with the members of the Executive Committee varies in function of the terms and conditions of each contract concerned.
The period of notice or compensatory severance payment due by Immobel in case of termination of contracts with the members of the Executive Committee / Executive Director, under a self-employed status, active within Immobel is 3 months1 . Exceptions can only be granted, after validation by the Board of Directors, on proposal of the Remuneration Committee.
For those exercising their function under an employee status, the legal notice periods and modalities are applicable.
1 Except the period of notice or compensatory severance payment due to Marnix Galle and Karel Breda in case of termination of contracts, amounting respectively 12 months and 6 months.
The Board of Directors, upon proposal of the Remuneration Committee, validates the Remuneration Policy and proposes the Remuneration Policy to the Ordinary General Meeting of Shareholders for approval. The Board assesses, on a yearly basis, if the Remuneration Policy needs to adapt.
The Remuneration Committee assesses on a yearly basis if all elements of the Policy are in line with the strategic objectives of the Company and proposes improvements to the Board of Directors, where deemed appropriate.
As mentioned in the Corporate Governance Charter last revised on January 7th, 2021 all Directors (thus members of the Remuneration Committee, or of any other concerned Committee) must avoid taking any action, position or interest that is, or appears to be, in conflict with the interests of the Company.
The General Meeting of Shareholders of May 28th, 2020 resolved to modify the fixed annual remuneration for each nonexecutive Director as from the year 2021, so that the fixed annual remuneration will amount to EUR 20,000 (compared to EUR 14,000 for the previous years), being understood that the attendance fees granted will remain unchanged.
In 2020, in line with the Performance Action Plan 2017 - 2019, a Performance Action Plan 2020 - 2022 was approved, as described above.
The Ordinary General Meeting of Shareholders (representing 61.19% of the share-capital) has on May 28th, 2020 approved the latest Remuneration Report (including the Remuneration Policy) by 5,902,716 votes "for", 199,150 votes "against" and 15,350 abstentions.
We therefore ask you to approve the terms of this Remuneration Policy for the next four years, being understood this Policy will be made available (together with the approval date and the results of the shareholders' binding vote) on Immobel's website to the general public for as long it will apply.
* * *
* * *
Agreed at the Meeting of the Board of Directors on March 4th, 2021.
ADL CommV (represented by Astrid De Lathauwer) Chair of the Remuneration Committee A³ Management BV (represented by Marnix Galle) Executive Chair of the Board of Directors
Ladies and Gentlemen,
We have great pleasure in presenting our Remuneration Report for the year under review.
The year 2020 is characterized by the covid-19 pandemic, hitting our economy and social life dramatically. Immobel has taken from the beginning of the pandemic the necessary actions to protect the continuity of the business and the operations at the very best. Several measures have been taken, also on Remuneration level, to assure the continuity and to mitigate the financial impact of the pandemic.
The Board of Directors has seen no changes in its composition in 2020 compared to 2019. A benchmark, done in 2019 had shown that the fix remuneration of the Directors was below the benchmark of comparable companies. Therefore a proposal was done to increase this fix remuneration from 14,000 EUR to 20,000 EUR. Due to the pandemic, this increase has been postponed from 2020 to 2021.
No deviation or derogation has been done from the current Remuneration Policy for the Directors (a new Remuneration Policy will be submitted for approval to the Annual Shareholders' Meeting of the Company to be held in Avril 2021).
In 2020, two new Members have joined the Executive Committee of Immobel (the Managing Director of Immobel Luxemburg, Olivier Bastin, and the Managing Director of Immobel France, Fabien Acerbis). Johan Bohets (Chief Legal Officer) has terminated his missions for the Company on March 31st 2020.
The Board of Directors and the Remuneration Committee have assessed in 2020 if the remuneration packages of the Members of the Executive Committee were in line with the Remuneration Policy and market practices. In that respect, the Board of Directors has reviewed the Remuneration Policy in order to align with the Company's long term strategic framework and objectives. The composition of the packages, (fix remuneration, STI, LTI and Performance Share Plan) have been maintained and the package of the Members of the Executive Committee have been assessed and adapted where believed appropriate, to reward performance and skills set. A new Performance share Plan 2020 - 2022 has been approved by the Shareholders during the Extraordinary General Meeting of May 28th, 2020 ; on that base, the Board of Directors decided to grant this Plan to the Members of of Executive Committee, exercing a Group function. In 2021 a benchmarking will be done for the package of the Chair of the Executive Committee / CEO .
The individual sums of remuneration given directly or indirectly to all the Directors and Members of the Executive Committee for 2020 are shown in the table below. All the amounts shown are, where appropriate, gross, i.e. before the deduction of tax.
In 2019 a benchmarking study regarding the remuneration of the non-executive Directors has been conducted. It revealed that the attendance fees for the meetings of the Board and its Committees were in line with the remuneration of comparable companies, while the fix remuneration was below the benchmarking. The implementation of the increase of this fix remuneration however has been postponed from 2020 to 2021, due to the covid-19 impact on the business. The increase, as of 2021, will bring the fix remuneration of the non-executive Directors from 14,000 EUR to 20,000 EUR.
The Board of Directors, on proposal of the Remuneration Committee, has decided on December 10th 2020 that each Director is requested to buy Immobel shares before the AGM to be held in April 2022 for a minimum amount of 20,000 EUR, being the fix annual remuneration for the year 2021 for each of them and to keep the shares at least 3 years after acquisition and until 1 year after the ending of the mandate.
Pursuant to Provision 7.5 of the Belgian Corporate Governance Code 2020, non-executive Directors do not receive any performance-related remuneration, that is directly related to the results of the Company.
| Name Director, Position |
Fixed remuneration in EUR | Variable remuneration in EUR |
Pension expense |
Total remuner |
Proportion fixed/ variable |
||||
|---|---|---|---|---|---|---|---|---|---|
| Base salary |
Attend ance Fees |
Fringe benefits |
One-year variable |
Multi year variable |
items1 | ation in EUR2 |
remuner ation |
||
| ADL Comm.V represented by Astrid DE LATHAUWER 2 |
14,000 | 11,475 | N/A | N/A | N/A | N/A | N/A | 25,475 | 100% |
| Pierre Nothomb SRL, represented by Pierre NOTHOMB |
14,000 | 21,875 | N/A | N/A | N/A | N/A | N/A | 35,875 | 100% |
| A.V.O.- Management SRL represented by Annick VAN OVERSTRAETEN |
14,000 | 12,600 | N/A | N/A | N/A | N/A | N/A | 26,600 | 100% |
| Karin KOKS | 14,000 | 16,800 | N/A | N/A | N/A | N/A | N/A | 30,800 | 100% |
| M.J.S. Consulting BV represented by Michèle SIOEN |
14,000 | 14,700 | N/A | N/A | N/A | N/A | N/A | 28,700 | 100% |
| LSIM SA represented by Wolfgang de LIMBURG STIRUM |
14,000 | 6,300 | N/A | N/A | N/A | N/A | N/A | 20,300 | 100% |
| Total Directors | 84,000 | 83,750 | 167,750 |
In 2020, the Company has continued the principles of the Remuneration Policy for the Members of the Executive Committee as described in Annexe 2 of the Corporate Governance Charter. The Board of Directors approves the appointment propositions of the Executive Committee, upon proposal by the Nomination Committee, and decides on their remuneration, based on the recommendations of the Remuneration Committee.
1 Such as the cost or value of insurance and other benefits in kind, with an explanation of the details of the main components.
2 This includes benefits that were granted / awarded / due (but not materialised) during the reported FY.
Due to the fact that the Covid-19 pandemic has had an important impact on the economy in general and on the business of Immobel in particular, the Members of the Executive Committee have decided to renounce to their variable remuneration of 2020 (both Short Term Incentive as Long Term incentive (non-PSP), except for 1 Member for whom this variable remuneration was contractually agreed at the moment of joining Immobel. This renunciation was decided at the beginning of the pandemic in Europe and maintained during the year, as the impact of the virus remained during entire 2020.
In 2020, the Managing Directors of Immobel France and Immobel Luxembourg, respectively Fabien Acerbis and Olivier Bastin, have joined the Executive Committee of Immobel. The Remuneration Committee and the Board of Directors have therefore assessed if the remuneration of all Members was still in line with the Company's objectives and market practices. Even though the variable remuneration was renunciated for the year 2020, a review of the remuneration package has been done, in order to remain attractive for the coming years.
Johan Bohets, as representative of Moirai Management BV (Chief Legal Officer), has terminated his missions for the Company on March 31st 2020. . No other changes were done in the composition of the Executive Committee.
With respect of the principles of the Remuneration Policy, the Board of Directors, on proposal of the Remuneration Committee, has proposed to modify the variable remuneration structure of the Members with following elements : 1° a Long Term Incentive plan for the Managing Directors of the countries who contribute the most to the result of the Group, as an incentive to outperform on their country level and 2° a Long Term Incentive plan for the Members of the Executive Committee, executing a Group function. These new elements are subject to approval of the Annual Shareholders' Meeting of the Company to be held in April 2021.
In line with the Remuneration Policy applicable in 2020, the remuneration package of the Executive Committee Members consists of 3 elements : 1° a fix remuneration , 2° a Short Term Incentive Plan, and 3° a Long Term Incentive Plan, unless contractually otherwise agreed.
Upon proposal of the Remuneration Committee , the Board of Directors has granted to the Executive Chair of the Board / CEO :
The fix remuneration of the other Members of the Executive Committee at December 31st, 2020, together with quantitative and qualitative criteria of their variable Short Term Incentive and the criteria and targets of the Long Term Incentive for some of the Members are fixed by the Board of Directors, on recommendation of the Remuneration Committee, and upon proposal of the Executive Chair of the Board / CEO.
| Name Member Executive Committee, |
Fixed remuneration in EUR | Variable remuneration in EUR |
Pension expense |
Total remuner ation in EUR4 |
Proportion fixed/ variable |
||||
|---|---|---|---|---|---|---|---|---|---|
| position | Base | Attend | Fringe | One | Multi-year | remuner ation |
|||
| salary | ance Fees |
benefits | year variable |
variable5 | |||||
| A3 Management, represented by Marnix Galle |
640,000 | N/A | N/A | waived | 139,3326 | N/A | N/A | 640,000 | 100% |
| Executive Chair of the Board |
|||||||||
| Total of all other Members of the Executive Committee |
2,056,263 | N/A | N/A | 172,000 | 198,2207 | 58,125 | N/A | 2,181,293 | 90% |
| Total | 2,696,263 | 172,000 | 337,552 | 58,125 | 2,821,293 |
| Name | Main conditions of the Performance Share Plan | Information regarding the reported FY | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Director, position |
Opening During the balance year |
Closing balance | |||||||||
| Specification plan | Performance period | Grant/ award date | Vesting date | End of holding period |
beginning of the Shares granted/ awarded at the period |
Shares vested | Shares granted | Shares subject to a performance condition |
and vested at year granted/awarded Shares end |
Shares subject to a holding period |
|
| 01/01/2017 -31/12/2019 |
07/12/2016 | 28/05/2020 | n/a | 1,806 | 2,049 | - | 2,049 | n/a | |||
| PSP 2017 - |
01/01/2018 -31/12/2020 |
13/03/2018 | 15/04/2021 | n/a | 1,477 | - | - | - | 1,058 | n/a | |
| A³ MANAGEMENT bv |
2019 | 01/01/2019 -31/12/2021 |
29/03/2019 | 14/04/2022 | n/a | 1,606 | - | - | 267 | - | n/a |
| Executive Chair / CEO |
01/01/2020 -31/12/2022 |
10/12/2020 | 20/04/2023 | n/a | 2,424 | - | 2,424 | - | n/a | ||
| PSP 2020 - |
01/01/2021 -31/12/2023 |
04/03/2021 | 18/04/2024 | n/a | - | - | - | - | n/a | ||
| 2022 | 01/01/2022 -31/12/2024 |
March/2022 | 17/04/2025 | n/a | - | - | - | - | n/a | ||
| 7,313 | 2,049 | - | 2,691 | 3,107 |
4
3 Corresponds to the severance cost of Moirai Management BV, represented by Johan Bohets.
4. This includes benefits that were granted/ awarded/ due (but not materialised) during the reported FY
5 The amount of the share-based remuneration is equal to the sum of the amount reported in the table related to "Share awards".
6 2,049 shares , at 68,00EUR on date of 04/01/2021
7 2,915 shares at 68,00 EUR at 04/01/2021
| Name | Main conditions of the Performance Share Plan | Information regarding the reported FY | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Executive, position |
Opening balance |
During the year |
Closing balance | ||||||||
| Specification plan | Performance period | Grant/ award date | Vesting date | End of holding period |
Shares granted/ beginning of the awarded at the period |
Shares vested | Shares granted | Shares subject to a performance condition |
and vested at year granted/awarded Shares end |
Shares subject to a holding period |
|
| 01/01/2017- 31/12/2019 |
- | - | n/a | - | - | - | - | - | n/a | ||
| KB | PSP 2017 - |
01/01/2018- 31/12/2020 |
11/09/2018 | 15/04/2021 | n/a | 205 | - | - | - | 293 | n/a |
| FINANCIAL SERVICES bv |
2019 | 01/01/2019- 31/12/2021 |
29/03/2019 | 14/04/2022 | n/a | 534 | - | - | 534 | - | n/a |
| Executive PSP (CFO) 2020 - 2022 |
01/01/2020- 31/12/2022 |
10/12/2020 | 20/04/2023 | n/a | 489 | - | - | 489 | - | n/a | |
| 01/01/2021- 31/12/2023 |
04/03/2021 | 18/04/2024 | n/a | - | - | - | - | n/a | |||
| 01/01/2022- 31/12/2024 |
March/2022 | 17/04/2025 | n/a | - | - | - | - | n/a | |||
| AP2L srl | 01/01/2020- 31/12/2022 |
10/12/2020 | 20/04/2023 | n/a | 505 | - | - | 505 | - | n/a | |
| Executive | PSP 2020 - |
01/01/2021- 31/12/2023 |
04/03/2021 | 18/04/2024 | n/a | - | - | - | - | n/a | |
| (CIO) | 2022 | 01/01/2022- 31/12/2024 |
March/2022 | 17/04/2025 | n/a | - | - | - | - | n/a | |
| FILIP DEPAZ CONSULTANCY |
01/01/2020- 31/12/2022 |
10/12/2020 | 20/04/2023 | n/a | 454 | - | - | 454 | - | n/a | |
| bv | PSP 2020 - |
01/01/2021- 31/12/2023 |
04/03/2021 | 18/04/2024 | n/a | - | - | - | - | n/a | |
| Executive (COO) |
2022 | 01/01/2022- 31/12/2024 |
March/2022 | 17/04/2025 | n/a | - | - | - | - | n/a | |
| Adel Yahia Consult BV Executive (MD |
LTI 2019 |
728 | - | - | - | - | 72 8 |
||||
| Belgium) | 2,915 | - | - | 1,982 | 293 | 72 8 |
Currently two Performance Share Plans exist for some Members of the Executive Committee. On May 24th 2017 the Shareholders have validated a Performance Share Plan for the benefit of some Members of the Executive Committee (of which the Executive Chair and the previous CEO) for the years 2017 up to 2019; and on May 28th, 2020 a Performance Share Plan was approved for the benefit of some Members of the Executive Committee for the years 2020 up to 2022.
These « Performance Share Plan » yearly grant, under certain conditions, Performance Shares to the Executive Chair / CEO and to some other Members of the Executive Committee. These "Performance Shares" will vest definitively after a period of three full calendar years, if they meet the predefined performance targets based on the average return on equity over three years and the average net income per share (excluding the Treasury Shares) over three years (for the first Plan 2017 - 2019). This Plan 2017 - 2019 is based on the 3Y average Return on Equity and 3Y Average Net Income per share.
In 2020, a total of 1,054 shares, granted under the « Performance Share Plan 2017 - 2019» (for the Cycle 2018 - 2020), have been vested to the Executive Chair / CEO (still performing Member of the Executive Committee subject to the achievement of the performance objectives).
The main rules of this Performance Share Plan are listed below:
"Under this plan, the Beneficiaries will receive a conditional grant of shares ("Performance Shares") that vest at the end of the Performance Period, subject to and upon realization of the Performance Conditions.
The Performance Shares granted will become unconditional / will vest following a Performance Period / vesting period of three full calendar years, conditional to the achievement of two Performance Conditions which are equally weighted:
The precise vesting level of the Performance Shares will depend upon the actual achievement level of the Performance Conditions:
The achievement of the Performance Conditions will be determined over a three-full calendar year Performance Period, i.e. January 1st, 2017 – December 31st, 2019.
Upon vesting, the Beneficiaries will not receive the value of the dividends relating to the previous three years with respect to the Performance Shares vested.
The Performance Shares granted under the Plan will vest at the end of the Performance Period, subject to and upon realization of the Performance Conditions. Performance Shares that do not become vested are forfeited and lapse. In addition, good leaver / bad leaver provisions apply in case of termination of the management services agreement entered into between the Member of the Executive Committee and Immobel during the Performance Period."
A new Performance Share Plan 2020 - 2022 was approved by the Shareholders at the General Meetings held on May 28th, 2020. Pursuant the « Performance Share Plan 2020 - 2022 » some Members of the Executive Committee can be granted yearly, under certain conditions, Performance Shares. These "Performance Shares" will vest definitively after a period of three full calendar years, if they meet the predefined performance targets based on the average Return on Equity over three years and the average Return On Capital Employed (ROCE) over three years.
For 2020, the lower treshold for 3Y Average ROE is defined by the Board of Directors at 10%, while the upper threshold is 15%.
For 3 Year Average ROCE, the lower threshold is defined by the Board of Directors at 7%, while the upper threshold is set at 8%.
There will be an allotment of Performance Shares in each of the years 2020 to 2022 and the total number of Performance Shares, and the total number of Performance Shares to be offered will be determined each year by the Board of Directors upon proposal of the Remuneration Committee.
In the framework of this Plan, for the 2020 allocation a total of 3,872 shares have been granted, subject to the achievement of the 100 % performance objectives, split-off as follows:
Executive Chair : 2,424 Performance Shares.
Chief Financial Officer : 489 Performance Shares.
Chief Investment Officer: 505 Performance Shares.
Chief Operational Officer : 454 Performance Shares.
The main rules of this Performance Share Plan are listed below:
The "Performance Shares" granted by the aforementioned plans are offered free of charge to the beneficiaries, and entitle the same rights as the existing shares. The Board of Directors annually sets the objectives, in accordance with the Company's strategy and the Remuneration Policy of the Company.
The exact degree to which the Performance Shares for the two plans will be definitively acquired, will depend on the level of performance of the objectives achieved:
Upon the final vesting, the beneficiaries will not receive the dividend value of the last three years to which the acquired Performance Shares relate.
Finally, 5% of the additional LTI-plan for some Members, focusing on outperformance for each concerned country, is allocated in shares. These shares will be vested 3 years after allocation.
There is no specific right to reclaim the variable remuneration awarded based on incorrect financial information, except in the above-mentioned Performance Share Plan which contains a Claw Back Clause. The Board of Directors has decided that the variable remuneration ("Short Term Incentive") will be paid to the Members of the Executive Committee/ Executive Director after the Board of Directors of March 4th, 2021 which draws up the Annual Accounts as at December 31st, 2020, subject to final approval by the Shareholders' Meeting of April 2021.
Pursuant to Provision 7.8 of the Belgian Corporate Governance Code 2020, the variable part of the executive remuneration package is structured to link reward to overall corporate and individual performance, and to align the interests of the Members of the Executive Committee with the sustainable value-creation objectives of Immobel. Therefore the Remuneration of the Members of the Executive Committee (Executive Chair included, as detailed above) is divided into a fixed part, a variable part STI ("Short Term Incentive") and, for some of them, a variable part LTI ("Long Term Incentive"). The variable part STI includes:
As decided by the Board of Directors, upon proposal of the Remuneration Committee, the Members of the Executive Committee, exeercing a Group function benefit from a weighted remuneration, at 80 % for quantitative aspects, and at 20 % for qualitative aspects, compared to total variable remuneration. The Managing Directors benefit from a weight 50 % - 50 %, with the exception of the Managing Director France (20% quantitative, 80% qualitative).
Regarding the variable part Long Term Incentive (LTI), a differentiation needs to be made between, on the one hand the Immobel Performance Share Plans (2017 - 2019 and 2020 - 2022) and on the other hand a specific Long Term Incentive Plan for other Members.
The Performance Share Plan gives to some Members of the Executive Committee an incentive in case targets are met on ROE and Share price (Plan 2017 - 2019) or on ROE and ROCE (Plan 2020 - 2022).
The 2nd LTI Plan, which incentivizes more specifically outperformance of the Managing Directors on country level, is based on outperformance of the ROE on country level and calculated in function of excess Net profit (above ROE level of 15%). In this LTI-Plan, a part of the amount is vested and paid out in cash (95% over 2 years), while the remaining 5% is allocated in shares and vested in a period of 3 years after allocation
The Members of the Executive Committee exercising a function at Group level received shares in the framework of the PSP 2020 - 2022 Plan, according to a certain % depending on their remuneration (25% for the Executive Chair/CEO and 10% for the other Members holding a function at Group level).The Board of Directors has decided that the variable remunerations « Short Term Incentive "will be paid to the Members of the Executive Committee after the Board of Directors of March 2021 establishing the Annual Accounts per December 31st, 2020, subject to final approval by the General Meeting of April 2021.
Based on the global performance of the Company during 2020 and on the realization of the individual targets of the Members of the Executive Committee between January 1st and December 31st, 2020, the variable part of the global remuneration (qualitative and quantitative) paid for 2020, represents 8 % of the basic remuneration for the Members of the Executive Committee (with exclusion of the one of the Executive Chair / CEO, detailed below. The variable part include on the one hand the contractually agreed STI amount and on the other hand the amounts due in the context of the Performance Share Plans (both allocated and vested).
The period of notice or compensatory severance payment due by Immobel in case of termination of contracts with the Members of the Executive Committee / Executive Directors, under a self-employed status, active within Immobel is 3 months. Exceptions can only be granted, after validation by the Board of Directors, on proposal of the Remuneration Committee.
For those exercising their function under an employee status, the legal notice periods and modalities are applicable. The periods of notice for the Members of the Executive Committee are:
| Name Director, | Description of the | Relative | Information on performance targets | Measured performance (a) and actual award outcome (b) |
||
|---|---|---|---|---|---|---|
| position | performance criteria and type of applicable remuneration |
weighting of the performance citeria |
Minimum target/threshold performance (a) and corresponding award (b) |
Maximum target/threshold performance (a) and corresponding award (b) |
||
| Return on Equity – | (a) ROE of 15% | (a) - | (a) - | |||
| A³ | variable quantitative rem. |
80% | (b) 256,000 EUR | (b) - | (b) 0 due to Covid |
|
| MANAGEMENT | Grow the business | (a) | (a) - | (a) | ||
| bv, Executive Chair / |
in all entities | 10% | (b) 32,000 EUR | (b) | (b) 0 due to Covid |
|
| CEO | Make a strong | (a) | (a) | (a) | ||
| ExCo Leadership team |
10% | (b) 32,000 EUR | (b) | (b) waived dueto Covid |
||
| Quantitative | Depends on | (a) ROE of 10% |
(a) ROE of 15% |
(a) Below 10% |
||
| Other Members of | criteria | Role within the Executive Comittee. |
(b) 0 EUR |
(b) 478,000 EUR |
(b) 0€ waived due to covid |
|
| the Executive Committee |
Diverse qualitative | Depends on | (a) / |
(a)/ | (a) individual |
|
| criteria (generi and individual) |
Role within the Executive |
(b) / |
(b)412,000 | scores per Member |
||
| Comittee | (b) 172,000 |
Based on the global performance of the Company during 2020 and on the realization of the individual targets of the Members of the Executive Committee between January 1st and December 31st, 2020, the variable part of the global remuneration (qualitative and quantitative) paid for 2020, represents 8 % of the basic remuneration for the Members of the Executive Committee (with exclusion of the one of the Executive Chair).
The variable remuneration of the Executive Chair, and of some other Members of the Executive Committee amounts less than 25 % of their respective remuneration in 2020. Further to the Extraordinary General Meeting of November 17th, 2016 it was expressly foreseen in article 16 of the articles of association that the Company may however derogate from the provisions of articles 7:91 paragraph 1 and 2 and 7:121 last paragraph of the Code of Companies and Associations, for each person falling within the scope of these provisions.
During 2020, there were no deviations from the Remuneration Policy or from its implementation, except the renunciation of the Members of the Executive Committee to their STI bonus (with the exception of one Member).
| Annual change | 2019 | 2020 | 2020 vs. 2019 | Information regarding the RFY |
|---|---|---|---|---|
| A³ MANAGEMENT bv6 Executive Chair |
+157,500 | From 01/07/2019, Marnix Galle became also CEO of the Company, on top of his role of the Executive Chair of the Board of Directors. |
||
| ADL CommV7 Non-executive |
34,175 | 25,475 | -8,700 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| PIERRE NOTHOMB srl8 Non-executive |
43,175 | 35,875 | -7,850 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| A.V.O.-MANAGEMENT bv9 Non-executive |
35,525 | 26,600 | -8,925 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| Karin KOKS-van der SLUIJS Non-executive |
46,550 | 30,800 | -15,750 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| M.J.S. CONSULTING bv10 Non-executive |
29,750 | 28,700 | -1,050 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| LSIM sa11 Non-executive |
23,450 | 20,300 | -3,150 | Lower attendance fees due to lower number of meetings and phone/Teams meetings |
| Total remuneration granted to Directors |
212,625 | 167,750 | -44,875 | |
| Average remuneration per collaborator (full cost)14 |
-14 | 126,452 | ||
| EBITDA | 132 MEUR | 59 MEUR | -73 MEUR | |
| Net profit | 101.4 MEUR | 32.5 MEUR | -69.9 MEUR |
6 Represented by its permanent representative Marnix GALLE.
8 Represented by its permanent representative Pierre NOTHOMB.
10 Represented by its permanent representative Michèle SIOEN.
7 Represented by its permanent representative Astrid DE LATHAUWER.
9 Represented by its permanent representative Annick van OVERSTRAETEN.
11 Represented by its permanent representative Wolfgang de LIMBURG STIRUM.
14 The average salary of a collaborator throughout the Group will be reported from 2020 on
The ratio of the highest remuneration compared to the lowest remuneration, at Full Time Equivalent, in Immobel Group amounts 14,7 in 2020. This information applies to all entities of the Group, in all locations (Belgium, Luxemburg, France, Germany, Poland and Spain).
Agreed at the Meeting of the Board of Directors on March 4th, 2021.
Immobel is required to explain in the report how the advisory vote on the previous remuneration report adopted by the last General Meeting has been taken into account:
For the sake of completeness, it is especially mentioned to the Shareholders that de Ordinary General Meeting of Shareholders (representing 61.19% of the share-capital) has on May 28th, 2020 approved the latest Remuneration Report (including the Remuneration Policy) by 5,902,716 votes "for", 199,150 votes "against" and 15,350 abstentions.
* * *
* * *
We therefore ask you to approve the terms of this Remuneration Report for the year 2020.
ADL CommV (represented by Astrid De Lathauwer) Chair of the Remuneration Committee A³ Management BV (represented by Marnix Galle) Executive Chair of the Board of Directors
| I. | CONSOLIDATED ACCOUNTS 118 | ||
|---|---|---|---|
| A. | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IN THOUSANDS EUR) 118 | ||
| B. | CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IN THOUSANDS EUR) 119 | ||
| C. | CONSOLIDATED STATEMENT OF CASH FLOW POSITION (IN THOUSANDS EUR) 120 | ||
| D. | CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IN THOUSANDS EUR) 121 | ||
| E. | ACCOUNTING PRINCIPLES AND METHODS 122 | ||
| 1) | GENERAL INFORMATION 122 | ||
| 2) | STATEMENT OF COMPLIANCE WITH IFRS 122 | ||
| 3) | PREPARATION AND PRESENTATION OF THE FINANCIAL STATEMENTS 123 | ||
| 4) | CONSOLIDATION RULES 124 | ||
| 5) | FOREIGN CURRENCIES 125 | ||
| 6) | INTANGIBLE ASSETS 125 | ||
| 7) | GOODWILL 125 | ||
| 8) | TANGIBLE ASSETS 126 | ||
| 9) | INVESTMENT PROPERTY 126 | ||
| 10) | LEASES 126 | ||
| 11) | FINANCIAL INSTRUMENTS 127 | ||
| 12) | INVENTORIES 129 | ||
| 13) | PROVISIONS 129 | ||
| 14) | EMPLOYEE BENEFITS 129 | ||
| 15) | GRANTS RELATED TO ASSETS OR INVESTMENT SUBSIDIES 129 | ||
| 16) | OPERATING REVENUE 129 | ||
| 17) | IMPAIRMENT ON VALUE ASSETS 131 | ||
| 18) | TAXES 131 | ||
| 19) | DISCONTINUED OPERATIONS 131 | ||
| 20) | MAIN JUDGEMENTS AND MAIN SOURCES OF UNCERTAINTIES RELATED TO THE ESTIMATIONS 131 | ||
| 21) | JOINT OPERATIONS 132 | ||
| 22) | SEGMENT REPORTING 132 | ||
| F. | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IN THOUSANDS EUR) 132 | ||
| 1) | OPERATING SEGMENT - FINANCIAL INFORMATION BY BUSINESS SEGMENT 132 | ||
| 2) | TURNOVER 137 | ||
| 3) | OTHER OPERATING INCOME 138 | ||
| 4) | COST OF SALES 139 | ||
| 5) | COST OF COMMERCIALISATION 139 | ||
| 6) | ADMINISTRATION COSTS 139 | ||
| 7) | GAIN ON SALE OF AFFILIATES 140 | |
|---|---|---|
| 8) | JOINT VENTURES AND ASSOCIATES 140 | |
| 9) | FINANCIAL RESULT 141 | |
| 10) | INCOME TAXES 141 | |
| 11) | EARNINGS PER SHARE 142 | |
| 12) | INTANGIBLE ASSETS 142 | |
| 13) | GOODWILL 142 | |
| 14) | PROPERTY, PLANT AND EQUIPMENT 144 | |
| 15) | RIGHT-OF-USE ASSETS 144 | |
| 16) | INVESTMENT PROPERTY 144 | |
| 17) | INVESTMENTS IN JOINT VENTURES AND ASSOCIATES 145 | |
| 18) | OTHER NON-CURRENT FINANCIAL ASSETS 150 | |
| 19) | DEFERRED TAX 150 | |
| 20) | OTHER NON-CURRENT ASSETS 151 | |
| 21) | INVENTORIES 151 | |
| 22) | TRADE RECEIVABLES 152 | |
| 23) | CONTRACT ASSETS 153 | |
| 24) | OTHER CURRENT ASSETS 153 | |
| 25) | INFORMATION RELATED TO THE NET FINANCIAL DEBT 153 | |
| 26) | EQUITY 156 | |
| 27) | PENSIONS AND SIMILAR OBLIGATIONS 158 | |
| 28) | PROVISIONS 159 | |
| 29) | TRADE PAYABLES 159 | |
| 30) | CONTRACT LIABILITIES 160 | |
| 31) | OTHER CURRENT LIABILITIES 160 | |
| 32) | MAIN CONTINGENT ASSETS AND LIABILITIES 160 | |
| 33) | CHANGE IN WORKING CAPITAL 160 | |
| 34) | INFORMATION ON RELATED PARTIES 161 | |
| 35) | EVENTS SUBSEQUENT TO REPORTING DATE 162 | |
| 36) | COMPANIES OWNED BY THE IMMOBEL GROUP 163 | |
| G. | STATEMENT FROM THE RESPONSIBLE PERSONS 167 | |
| H. | STATUTORY AUDITOR'S REPORT 168 | |
| REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 168 | ||
| Unqualified opinion 168 | ||
| Basis for the unqualified opinion 168 | ||
| Key audit matters 168 | ||
| Reference to disclosure 170 | ||
| Reference to disclosure 171 | ||
| Responsibilities of the board of directors for the preparation of the consolidated financial statements 171 | ||
| Responsibilities of the statutory auditor for the audit of the consolidated financial statements 171 | ||
| OTHER LEGAL AND REGULATORY REQUIREMENTS 172 | ||
| Responsibilities of the board of directors 172 | ||
| Responsibilities of the statutory auditor 172 | ||
| Aspects regarding the directors' report on the consolidated financial statements and other information disclosed in | ||
| the annual report on the consolidated financial statements 172 | ||
| Statements regarding independence 173 | ||
| Other statements 173 | ||
| II. | STATUTORY CONDENSED FINANCIAL STATEMENTS 174 | |
| A. | STATEMENT OF FINANCIAL POSITION (IN THOUSANDS EUR) 174 | |
| B. | STATEMENT OF COMPREHENSIVE INCOME (IN THOUSANDS EUR) 175 | |
| C. | APPROPRIATION ACCOUNT (IN THOUSANDS EUR) 175 | |
| D. | SUMMARY OF ACCOUNTING POLICIES 176 | |
| NOTES | 31/12/2020 | 31/12/2019 | |
|---|---|---|---|
| OPERATING INCOME | 375 390 | 419 547 | |
| Turnover | 2 | 364 479 | 408 784 |
| Other operating income | 3 | 10 911 | 10 763 |
| OPERATING EXPENSES | -333 526 | -327 192 | |
| Cost of sales | 4 | -300 766 | -291 027 |
| Cost of commercialisation | 5 | -1 702 | -3 160 |
| Administration costs | 6 | -31 057 | -33 005 |
| SALE OF AFFILIATES | 133 | 19 618 | |
| Gain on sale of affiliates | 7 | 133 | 19 618 |
| JOINT VENTURES AND ASSOCIATES | 7 994 | 4 985 | |
| Share in the net result of joint ventures and associates | 8 | 7 994 | 4 985 |
| OPERATING RESULT | 49 991 | 116 958 | |
| Interest income | 5 773 | 3 240 | |
| Interest expense | -11 859 | -7 524 | |
| Other financial income | 1 440 | 738 | |
| Other financial expenses | -2 649 | -1 782 | |
| FINANCIAL RESULT | 9 | -7 295 | -5 328 |
| RESULT FROM CONTINUING OPERATIONS BEFORE TAXES | 42 696 | 111 630 | |
| Income taxes | 10 | -8 650 | -9 390 |
| RESULT FROM CONTINUING OPERATIONS | 34 047 | 102 240 | |
| RESULT OF THE YEAR | 34 047 | 102 240 | |
| Share of non-controlling interests | 775 | - 196 | |
| SHARE OF IMMOBEL | 33 272 | 102 436 | |
| RESULT OF THE YEAR | 34 047 | 102 240 | |
| Other comprehensive income - items subject to subsequent recycling in the income | 2 282 | ||
| statement | |||
| Currency translation | 2 282 | ||
| Other comprehensive income - items that are not subject to subsequent recycling in the | 27 | 201 | - 1 |
| income statement | |||
| Actuarial gains and losses (-) on defined benefit pension plans | 27 | 201 | - 1 |
| Deferred taxes | |||
| TOTAL OTHER COMPREHENSIVE INCOME | 2 483 | - 1 | |
| COMPREHENSIVE INCOME OF THE YEAR | 36 530 | 102 239 | |
| Share of non-controlling interests | 964 | - 196 | |
| SHARE OF IMMOBEL | 35 566 | 102 435 | |
| NET RESULT PER SHARE (€) (BASIC) | 11 | 3,58 | 11,66 |
| COMPREHENSIVE INCOME PER SHARE (€) (BASIC) | 11 | 3,82 | 11,66 |
| NET RESULT PER SHARE (€) (DILUTED) | 11 | 3,58 | 11,65 |
| COMPREHENSIVE INCOME PER SHARE (€) (DILUTED) | 11 | 3,82 | 11,65 |
| ASSETS | NOTES | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| NON-CURRENT ASSETS | 448 370 | 213 311 | |
| Intangible assets | 12 | 582 | 543 |
| Goodwill | 13 | 43 789 | 43 789 |
| Property, plant and equipment | 14 | 1 388 | 983 |
| Right-of-use assets | 15 | 4 390 | 6 441 |
| Investment property | 16 | 197 149 | 81 123 |
| Investments in joint ventures and associates | 17 | 106 195 | 55 899 |
| Advances to joint ventures and associates | 17 | 76 644 | 9 492 |
| Other non-current financial assets | 18 | 175 | 4 920 |
| Deferred tax assets | 19 | 16 369 | 6 374 |
| Other non-current assets | 20 | 1 689 | 3 747 |
| CURRENT ASSETS | 982 768 | 1 087 903 | |
| Inventories | 21 | 683 121 | 694 580 |
| Trade receivables | 22 | 33 168 | 72 516 |
| Contract assets | 23 | 57 251 | 42 228 |
| Tax receivables | 3 450 | 2 703 | |
| Other current assets | 24 | 37 269 | 41 937 |
| Advances to joint ventures and associates | 20 399 | 77 743 | |
| Other current financial assets | 49 | 50 | |
| Cash and cash equivalents | 25 | 148 059 | 156 146 |
| TOTAL ASSETS | 1 431 137 | 1 301 214 |
| EQUITY AND LIABILITIES | NOTES | 31/12/2020 | 31/12/2019 |
|---|---|---|---|
| TOTAL EQUITY | 26 | 494 490 | 428 162 |
| EQUITY SHARE OF IMMOBEL | 491 922 | 426 151 | |
| Share capital | 97 256 | 97 256 | |
| Retained earnings | 392 143 | 328 693 | |
| Reserves | 2 524 | 202 | |
| NON-CONTROLLING INTERESTS | 2 568 | 2 011 | |
| NON-CURRENT LIABILITIES | 609 602 | 523 379 | |
| Employee benefit obligations | 27 | 603 | 633 |
| Deferred tax liabilities | 19 | 37 301 | 15 447 |
| Financial debts | 25 | 571 139 | 507 008 |
| Derivative financial instruments | 25 | 560 | 291 |
| CURRENT LIABILITIES | 327 045 | 349 673 | |
| Provisions | 28 | 2 114 | 3 882 |
| Financial debts | 25 | 180 810 | 200 063 |
| Trade payables | 29 | 60 927 | 59 564 |
| Contract liabilities | 30 | 3 896 | 5 690 |
| Tax liabilities | 7 110 | 1 354 | |
| Other current liabilities | 31 | 72 188 | 79 120 |
| TOTAL EQUITY AND LIABILITIES | 1 431 137 | 1 301 214 |
| NOTES | 31/12/2020 | 31/12/2019 | |
|---|---|---|---|
| Operating income | 375 390 | 419 547 | |
| Operating expenses | -333 526 | -327 192 | |
| Amortisation, depreciation and impairment of assets | 3 684 | 5 788 | |
| Change in provisions | -1 198 | 1 839 | |
| Dividends received from joint ventures and associates | 10 533 | 2 630 | |
| Disposal of joint ventures and associates | 17 | 66 | |
| Repayment of capital and advances by joint ventures | 17 113 | 23 608 | |
| Acquisitions, capital injections and loans to joint ventures and associates | -70 095 | -41 775 | |
| CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL |
1 901 | 84 511 | |
| Change in working capital | 33 | -80 846 | -210 565 |
| CASH FLOW FROM OPERATIONS BEFORE PAID INTERESTS AND PAID TAXES |
-78 945 | -126 054 | |
| Paid interests | 9 | -18 936 | -12 539 |
| Interest received | 5 773 | 3 240 | |
| Other financing cash flows | - 552 | -2 534 | |
| Paid taxes | 10 | -6 011 | -10 606 |
| CASH FROM OPERATING ACTIVITIES | -98 671 | -148 493 | |
| Acquisitions of intangible, tangible and other non-current assets | - 878 | -5 837 | |
| Acquisitions of affiliates | 13 | -67 019 | |
| Disposal of affiliates | 7 | 9 792 | 28 508 |
| CASH FROM INVESTING ACTIVITIES | 8 914 | -44 348 | |
| Increase in financial debts | 151 931 | 291 307 | |
| Repayment of financial debts | -100 881 | -91 965 | |
| Sales of own shares | 57 600 | ||
| Gross dividends paid | -26 981 | -21 241 | |
| CASH FROM FINANCING ACTIVITIES | 81 669 | 178 101 | |
| NET INCREASE OR DECREASE (-) IN CASH AND CASH EQUIVALENTS | -8 088 | -14 740 | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 156 146 | 170 886 | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 148 058 | 156 146 |
Acquisitions and sales of projects, either directly or indirectly through the acquisition or the sale of a project company (subsidiaries, joint ventures and associates), are usually directly included in the cash flows from the operating activities, mainly "Operating income / Operating expenses and change in working capital".
Acquisitions of investment property, insofar as these are related to a future development project, are included in the cash flows from the operating activities.
| CAPITAL | RETAINED EARNINGS |
ACQUISITION RESERVE |
CURRENCY TRANSLATION |
RESERVE FOR DEFINED BENEFIT PLANS |
HEDGING RESERVES |
EQUITY TO BE ALLOCATED TO THE GROUP |
NON CONTROL LING INTERESTS |
TOTAL EQUITY | |
|---|---|---|---|---|---|---|---|---|---|
| 2020 | |||||||||
| Balance as at 01-01-2020 | 97 256 | 258 344 | 70 321 | 55 | 175 | 426 151 | 2 011 | 428 162 | |
| Before treasury shares | 97 256 | 258 344 | 124 869 | 55 | 175 | 480 699 | 2 011 | 482 710 | |
| Treasury shares | -54 548 | -54 548 | -54 548 | ||||||
| Comprehensive income for the year | 33 272 | 33 272 | 775 | 34 047 | |||||
| Other comprehensive income | 2 092 | 202 | 2 294 | 189 | 2 483 | ||||
| Dividends and other beneficiaries paid | -26 551 | -26 551 | - 430 | -26 981 | |||||
| Cash flow hedging | - 560 | - 560 | - 560 | ||||||
| Scope changes | - 23 | - 23 | 23 | ||||||
| Transactions on treasury shares | 16 216 | 41 384 | 57 600 | 57 600 | |||||
| Other changes | - 261 | - 261 | - 261 | ||||||
| Changes in the year | 22 653 | 41 384 | 2 092 | 202 | - 560 | 65 771 | 557 | 66 328 | |
| Balance as at 31-12-2020 | 97 256 | 280 997 | 111 705 | 2 147 | 377 | - 560 | 491 922 | 2 568 | 494 490 |
| Before treasury shares | 97 256 | 280 997 | 124 869 | 2 147 | 377 | - 560 | 505 086 | 2 568 | 507 654 |
| Treasury shares | -13 164 | -13 164 | -13 164 |
| CAPITAL | RETAINED EARNINGS |
ACQUISITION RESERVE |
CURRENCY TRANSLATION |
RESERVE FOR DEFINED BENEFIT PLANS |
HEDGING RESERVES |
EQUITY TO BE ALLOCATED TO THE GROUP |
NON CONTROL LING INTERESTS |
TOTAL EQUITY | |
|---|---|---|---|---|---|---|---|---|---|
| 2019 | |||||||||
| Balance as at 01-01-2019 | 97 256 | 177 187 | 69 960 | 55 | 176 | 344 634 | 116 | 344 750 | |
| Before treasury shares | 97 256 | 177 187 | 124 869 | 55 | 176 | 399 543 | 116 | 399 659 | |
| Treasury shares | -54 909 | -54 909 | -54 909 | ||||||
| Comprehensive income for the year | 102 436 | 102 436 | - 196 | 102 240 | |||||
| Other comprehensive income | - 1 | - 1 | - 1 | ||||||
| Dividends and other beneficiaries paid | -21 241 | -21 241 | -21 241 | ||||||
| Scope changes | 2 091 | 2 091 | |||||||
| Other changes | - 38 | 361 | 323 | 323 | |||||
| Changes in the year | 81 157 | 361 | - 1 | 81 517 | 1 895 | 83 412 | |||
| Balance as at 31-12-2019 | 97 256 | 258 344 | 70 321 | 55 | 175 | 426 151 | 2 011 | 428 162 | |
| Before treasury shares | 97 256 | 258 344 | 124 869 | 55 | 175 | 480 699 | 2 011 | 482 710 | |
| Treasury shares | -54 548 | -54 548 | -54 548 |
A gross dividend of EUR 2.77 per share (excluding treasury shares) was proposed by the Board of Directors on March 4, 2021. It will be submitted to the shareholders for approval at the general meeting. The appropriation of income has not been recognized in the financial statements as of December 31, 2020.
On December 31, 2020 the treasury shares, resulting from the merger with ALLFIN, remain valued at the share price on June 29, 2016, which was the date of the merger.
The currency translation adjustments are related to Polish entities for which the functional currency is in zloty.
IMMOBEL (hereafter named the "Company") is a limited company incorporated in Belgium. The address of its registered office is Rue de la Régence 58 at 1000 Brussels.
The consolidated financial statements have been prepared in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union. The Board of Directors settled the consolidated financial statements and approved their publication on March 4, 2021.
The accounting principles and methods used are the same as those used for the consolidated financial statements for the year ended December 31, 2019
STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1 JANUARY 2020
While the list of new standards is provided below, not all of these new standards will have an impact on these financial statements.
STANDARDS AND INTERPRETATIONS PUBLISHED, BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1 JANUARY 2020
The Group has not anticipated the following standards and interpretations which are not yet applicable on 31 December 2020:
The process for determining the potential impact of these standards and interpretations on the Group's consolidated financial statements is ongoing. The group does not expect any changes resulting from the application of these standards.
The consolidated financial statements are presented in thousands of EUR.
They are prepared on the historical cost basis, except for some financial instruments which are measured at fair value, as explained in the accounting policies below.
Considering the impact of COVID 19 on the economic circumstances and on the current financial performance of the company, the Board of Directors re-assessed the going concern assumption of the company on March 4, 2021 based on the FY 2021 budget.
In this context of crisis, the Group has paid particular attention to adequately reflect the current and expected impact of the COVID-19 situation on the financial position, performance and cash-flows of the company, applying the IFRS accounting principles in a consistent manner.
Covid-19 is currently still having an impact on the activity of the company and the sector as a whole mainly with respect to progress in permitting as well as for office related commercial activities.
In light of the COVID-19 pandemic, the Group assessed whether its non-financial assets, in particular goodwill arisen from the acquisition of Nafilyan & Partners, could be impaired. The Group thus carried out an analysis of indicators of potential impairment, in accordance with the provisions of IAS 36 – Impairment of Assets.
The slow-down of the sales, also observed in France, has been considered by management as a trigger event, especially in this COVID-19 context. An impairment test was carried out based on the revised business plan, noting no impairment risk as per 31 December 2020 – see note 13.
The COVID-19 crisis gives rise to a potentially increased credit risk and may therefore affect the amount of impairment losses to be recognized in respect of expected credit losses. The Group has therefore monitored payment receipts and counterparty risk more closely, noting no significant deterioration. The impact of the "expected credit losses" (ECL) remains immaterial, especially since a physical asset can be considered, in most cases, as a collateral (guarantee) in the assessment.
With regards to the inventories (projects to be developed), the assumptions used to assess the recoverability of the project under development have been consistently reviewed and updated based on the most recent market data, without significant impact. No impairments have been identified as per December 31, 2020.
Financial risks have been monitored carefully.
As a buffer against this market conditions the company has a cash position of EUR 148 million at the end of December 2020, available corporate lines of EUR 76 million, non-issued Commercial Paper for an amount of EUR 26.5 million and substantial headroom on its main debt covenants.
Liquidity risk and trends in interest rate and exchange rate markets, have been reviewed and the related information has been updated based on data available at December 31, 2020 – see note 25.
Immobel's deferred tax asset positions were reviewed in order to ensure their recoverability through future taxable income. The Group also monitored changes to legislation, revisions to tax rates and other tax measures taken in response to the crisis.
The company did not identify significant impact of the COVID-19 crisis on the estimated future taxable profit.
The Group reviewed whether any current obligations were likely to give rise to the recognition of provisions, noting no specific risk.
The financial impacts of the crisis were rather limited, except in terms of pace of sales, which slowed down, and progress on construction sites.
The Group has neither adjusted its performance indicators, nor included new indicators to describe the impacts of COVID-19.
In Belgium, as well as in other countries, the Group utilized government temporary unemployment schemes and deferred the disbursement of some tax debts, all being paid as per December 31, 2020.
Given the uncertainties related to the health crisis and the constantly changing environment, the Group paid particular attention to events that occurred during the period from December 31, 2020 until the approval of the financial statements by the Board of Directors – see note 32.
Actuals have shown that the crisis has impacted Immobel financial results to a lower extent than in the stress case developed by management in April 2020. Based on the FY 2021 budget, management re-assessed the going concern assumption of the company and confirmed it remains appropriate.
The consolidated financial statements include the financial statements of the Company and its subsidiaries, as well as interests in joint ventures and in associated companies accounted for using the equity method.
All intragroup balances, transactions, revenue and expenses are eliminated.
Subsidiaries are companies controlled by the Group.
Control is achieved when the Company:
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
The financial statements of subsidiaries are included in the consolidated financial statements from the date when control begins until the date when control ends.
A joint venture is a contractual agreement whereby the Group and one or several parties agree to undertake an economic activity under joint control. The joint venture agreement generally results in the creation of one or more distinct jointly controlled entities.
Since January 1, 2014, joint ventures, which were previously consolidated using the proportional method, are included in the consolidated financial statements using the equity method.
Associates are entities over which the Group has significant influence through its participation in their financial and operating policy decisions. They are neither subsidiaries, nor joint ventures of the Group.
Significant influence is presumed if the Group, directly or indirectly, holds 20 % or more but less than 50 % of the voting rights through its subsidiaries.
Interests in associates are accounted for in the consolidated financial statements using the equity method, from the date when significant influence begins until the date when it ends. The book value of interests is decreased, if applicable, so as to record any impairment of individual interests.
The financial statements of subsidiaries, joint ventures and associates with reporting dates other than 31 December (reporting date of the Company) are adjusted so as to take into account the effect of significant transactions and events that occurred between the reporting date of the subsidiary, joint venture or associate and 31 December. The difference between 31 December and the reporting date of the subsidiary, joint venture or associate never exceeds 3 months.
IMMOBEL analyses any acquisition of subsidiaries based on IFRS 3 and integrates the criteria suggested by IFRS 3 §B5 to B12 to identify any business combination and to define a business. In accordance with IFRS 3, if the acquired assets do not constitute a business, the acquisition is treated as an "acquisition of assets".
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the Group's share in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired entity at the date of acquisition. Goodwill is reported as an asset and is not amortised but annually subject to an impairment in value test at reporting date (or more frequently if there are indications of loss in value). Impairment losses are recognised immediately under income and are not reversed in subsequent periods.
Goodwill resulting from the acquisition of a joint venture or an associate is included in the book value of the investments in joint ventures and associates. Goodwill resulting from the acquisition of a subsidiary is presented separately in the balance sheet.
On disposal of a subsidiary, a joint venture or an associate, the book value of the goodwill is included so as to determine the profit or loss on the disposal.
Negative goodwill represents the excess of the net fair value of the identifiable assets, liabilities and contingent liabilities of a subsidiary over the price of business combination at the date of acquisition, plus the value of non-controlling interests (owned by minority shareholders of subsidiaries). To the extent that a surplus subsists after review and re-evaluation of the values, the negative goodwill is immediately recognised in profit and loss.
The balance sheets of foreign companies are translated in EUR at the official year-end exchange rate and income statements are translated at the average exchange rate for the financial year.
Translation differences resulting therefrom are included under shareholders' equity under "translation differences". Upon disposal of an entity, translation differences are recognised in profit and loss.
Transactions are first recorded at the exchange rate prevailing on the transaction date. At each end of the financial year, monetary assets and liabilities are converted at the exchange rates on the balance sheet date. Gains or losses resulting from this conversion are recorded as financial result.
Intangible assets are recorded in the balance sheet if it is likely that the expected future economic benefits which may be allocated to assets will flow to the entity and if the cost of the assets can be measured reliably.
Intangible assets are measured at cost less accumulated amortisation and any impairment losses.
Intangible assets are amortised using the straight-line method on the basis of the best estimate of their useful lives. The amortisation period and method are reviewed at each reporting date.
Goodwill is initially recognised and measured as set out above.
Goodwill is not amortised but is reviewed for impairment at least annually.
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cashgenerating units) expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Tangible assets are measured at cost less accumulated depreciation and any impairment losses. Fixed assets are depreciated prorata temporis on a straight-line basis over their useful lives. Useful lives have been determined as follows:
Land has an unlimited useful life and therefore it is not depreciated.
Subsequent expenses related to tangible assets are only capitalised if it is likely that future economic benefits associated with the item will flow to the entity and if the cost of the item can be measured reliably.
Buildings under construction for manufacturing, leasing or administrative purposes are recorded at cost less any impairment loss. Depreciation of these assets begins when the assets are ready to be used.
Investment property is measured in accordance with the cost model of IAS 40 - Investment property. They represent real property (land and/or buildings under construction or available) held by the Group so as to earn rent and/or create value for property rather than use or sell them. They mainly relate to buildings acquired to be redeveloped and which are rented until the beginning of development.
Investment property is amortized over a period until the beginning of development, at which time they are transferred to inventories, and taking into account a residual value estimated at that date.
The Group assesses whether a contract is or contains a lease, at inception of the contract With respect to all lease arrangements in which the Group is the lessee, a lease liability (i.e. a liability to make lease payments) will be recognized, as well as a right-of-use asset (i.e. an asset representing the right to use the underlying asset over the lease term), except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The Group's leased assets relate mainly to buildings and transportation equipment. The right-of-use assets are presented separately in the consolidated statement of financial position, and the lease liabilities are presented as part of financial debt.
The right-of-use asset is initially measured at the amount of the lease liability plus any initial direct costs incurred by the lessee. Adjustments may also be required for lease incentives, payments at or prior to commencement and restoration obligations or similar.
After lease commencement, the right-of-use asset is measured using a cost model.
Under the cost model a right-of-use asset is measured at cost less accumulated depreciation and accumulated impairment. Rightof-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described under section 17 hereunder.
The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the rate implicit in the lease if that can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate.
The lease liability is subsequently remeasured to reflect changes in:
The remeasurements are treated as adjustments to the right-of-use asset.
The Group enters into lease agreements as a lessor with respect to its investment properties. These mainly relate to buildings acquired to be redeveloped and which are rented until the beginning of development. These contracts are classified as operating leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
Financial assets and financial liabilities are recognised in the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
The financial assets include the investments in equity instruments designated at fair value through profit or loss, loans to related parties, receivables including trade receivables and other receivables, derivative financial instruments, financial assets at fair value through profit or loss, cash and cash equivalents.
The acquisitions and sales of financial assets are recognised at the transaction date.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Debt instruments that meet the following conditions are subsequently measured at amortised cost:
Debt instruments include
On initial recognition, the Group made an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at fair value through profit and loss account. Investments in equity instruments at fair value through profit and loss account are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in the income statement.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period.
For financial instruments other than purchased or originated credit-impaired financial assets, the effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. On the other hand, the gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
The Group has elected to adopt the hedge accounting requirements of IFRS 9 Financial Instruments where the hedging instrument and the hedged item match based on an assessment of the effectiveness of the hedge.
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, in the 'other gains and losses' line item.
In relation to the impairment of financial assets, an expected credit loss model is applied. The expected credit loss model requires the Group to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. Specifically, the following assets are included in the scope for impairment assessment for the Group: 1) trade receivables; 2) current and non-current receivables and loans to related parties; 3) contract assets; 4) cash and cash equivalents.
IFRS 9 requires the Group to measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. On the other hand, if the credit risk on a financial instrument has not increased significantly since initial recognition, the Group is required to measure the loss allowance for that financial instrument at an amount equal to 12 month expected credit losses. For long term receivables, IFRS 9 provides a choice to measure expected credit losses applying lifetime or 12 month expected credit losses model. The Group selected the lifetime expected credit loss model.
The expected credit loss is assessed for each financial asset on an individual basis and is generally immaterial in view of the fact that a physical asset can be considered as a collateral (guarantee) in the assessment of the expected credit loss : trade receivables generally relate to the sales of residential units under construction and advances to associates and joint ventures relate to financing projects under development.
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
All financial liabilities of the Group are subsequently measured at amortised cost using the effective interest method.
Interest-bearing bank loans and overdrafts are recorded at the amount of cash obtained, after deduction of any transaction costs. After initial recognition, they are measured at amortized cost. Any difference between the consideration received and the redemption value is recognized in income over the period of the loan using the effective interest rate.
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Issue costs that may be directly allocated to an equity transaction are recorded as a deduction from equity. As a consequence, capital increases are recorded at the proceeds received, net of issue costs. Similarly, equity transactions on own participation are recognised directly under shareholders' equity.
Cash flows are inflows and outflows of cash and cash equivalents.
Operating activities are the principal revenue-producing activities of the entity and other activities that are not investing or financing activities. Acquisitions and sales of projects, either directly through the purchase of sale of assets, or indirectly through the acquisition or sale of project companies, are considered as operating activities and are presented as part of the cash flows from operating activities. All project acquisitions are considered operational activities, whether the project is classified in inventory or in investment property if it is leased prior to its development.
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Financing activities are activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.
Inventories are measured at cost of the specific asset or net realisable value, whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business, less estimated completion costs and costs to sell.
The acquisition cost of purchased goods includes acquisition cost and incidental expenses. For finished goods and work in progress, the cost price takes into account direct expenses and a portion of production overhead without including administrative and financial expenses.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated cost necessary to make the sale. The impairment in value or loss on inventories to bring them to their net realisable value is recognised as an expense in the year when the impairment in value or loss occurs.
The interests incurred during construction are capitalised. The costs of borrowings are activated depending on the nature of the funding. The cost of funding defined as "project financing" are fully allocated to projects funded. The costs of "Corporate" and "Bonds" financing are partially allocated based on an allocation key taking into account the projects under development and the amounts invested. The activation of the borrowing costs stops as soon as the project is on sale.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, when it is likely that an outflow of resources will be necessary to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation if necessary.
A provision for warranties is made when underlying products or services are sold. The measurement of the provision is based on historical data and by weighing all possible outcomes to which probabilities are associated (expected value method).
Contingent liabilities, which occurrence is not probably, are not recognized as a provision and are mentioned in the notes to the financial statements, provided that the risk is significant.
Contingent assets are not recognized in the financial statements.
The Group operates a defined-benefit pension plan and a defined-contribution pension plan.
For such a plan, the cost of corresponding commitments is determined using the Projected Unit Credit Method, with present values being calculated at year end.
The amount recognised in the balance sheet represents the present value of commitments in terms of the defined benefit pension plans, less the fair value of plan assets and costs of rendered services not yet recognised. Any asset resulting from this calculation is limited to the present value of possible payments for the Group and the decreases in future contributions to the plan.
Actuarial gains and losses are directly recorded in the other elements of comprehensive income and are presented in the statement of comprehensive income.
Bonuses granted to company employees and senior executives are based on targets relating to key financial indicators. The estimated amount of bonuses is recognized as an expense in the year to which they relate.
Received government grants related to assets or investment subsidies are recognised in the balance sheet (presented under other long-term liabilities or other short-term liabilities) as deferred income. They are recognised as income in the same way as the asset margin to which they relate
Group revenue comes mainly from Real Estate Development activities (including Project Management services) and also from lease agreements.
Under IFRS 15, revenue must be recognised when the customer gains control of the goods or services sold, for a sum which reflects what the entity expects to receive for the goods or services.
The main categories of sale contracts used by the Group comprise:
In accordance with IFRS 15, IMMOBEL assesses on a case-by-case basis:
For "Residential" projects, the analysis has distinguished the revenue from contracts for which the contractual provisions and the legal context (Breyne Act in Belgium or equivalent in Luxembourg, France and Germany) establish a gradual transfer of the control of the asset to the purchaser as the construction progresses from the other revenue linked to the completion of an obligation.
The legal framework in Belgium and Luxembourg gradually transfers the ownership of a residential unit to the purchaser during the construction period. In such a situation, the performance obligation is fulfilled gradually since control over the asset is transferred as the construction progresses.
A single margin (with no distinction between "land" and "development") is recognised gradually for each sale as the asset under development is transferred.
The regulatory framework in Poland requires to recognise the revenue upon completion of the performance obligation (upon the signing of the final deed, once the unit being sold is delivered).
Other types of sale may occur (block sale of a project, hotel, commercial space, etc.). Such transactions are therefore subject to an analysis on a case-by-case basis using an approach similar to that described for the "Office" schemes.
For this segment, the sales revenue is recorded when the asset is transferred.
The revenue from the sale of a project is recognized in gross (sales price and cost of sales) regardless of the structure of the transaction (share deal / asset deal). Disposals of controlled companies dedicated to a project are therefore considered part of the normal business of the Group and are therefore recognized in sales and cost of sales (IFRS 15). In other circumstances, IFRS 10 will be applied.
The method of legal ownership has no impact on the recognition of the margin but on its presentation, which will differ depending on whether it is:
When the group loses control of a subsidiary that does not contain a business as defined by IFRS 3 and retains an investment (partial sale of a company dedicated to a project), the transaction is treated as a transaction between an investor and its associate or joint venture and the gain or loss is recognised only to the extent of unrelated investors' interest in the associate or joint venture.
With respect to operating leases, rent is recognised under income on a straight-line basis over the term of the lease, even if payments are not made on this basis. Lease incentives granted by the Group in negotiating or renewing an operating lease are recognised as a reduction of the lease income on a straight-line basis over the term of the lease. Rent income are presented as other operating income in the consolidated statement of comprehensive income.
The carrying amount of non-current assets (other than financial assets in the scope of IFRS 9, deferred taxes and non-current assets held for sale) is reviewed at the end of each reporting period in order to determine if an indication exists that an asset has impaired. If such indication exists, the recoverable amount is then determined. Regarding intangible assets with indefinite useful lives and goodwill, the recoverable amount is estimated at the end of each reporting period. An impairment loss is recognized if the carrying amount of the asset or the cash-generating unit exceeds its recoverable amount. Impairment losses are presented in the income statement.
When the recoverable amount cannot be individually determined for an asset, including goodwill, it is measured at the level of the cash generating unit to which the asset belongs.
The recoverable amount of an asset or cash-generating unit is its fair value less selling costs or its use value, whichever is higher. The latter is the present value of expected future cash flows from the asset or the respective cash generating unit. In order to determine the value in use, the future cash flows are discounted using a pre-tax discount rate which reflects both the current market rate and the specific risks of the asset.
A reversal of impairment loss is recognised under income if the recoverable amount exceeds the net book value. However, the reversal may not lead to a higher book value than the value that would have been determined if no impairment loss had been initially recorded on this asset (cash-generating unit). No reversal of impairment loss is recognized on goodwill.
Income tax for the year includes current and deferred tax. Current and deferred income taxes are recognised in profit and loss unless they relate to items recognised directly under shareholders' equity, in which case they are also recognised under shareholders' equity.
Current tax is the amount of income taxes payable (or recoverable) on the profit (or loss) in a financial year and the adjustments to tax charges of previous years.
Deferred tax is recognised using the liability method of tax allocation, based on timing differences between the book value of assets and liabilities in the consolidated accounts and their tax basis.
Deferred tax liabilities are recognised for all taxable timing differences.
Deferred tax assets are only recognised for deductible timing differences if it is likely that in the future they may be charged against taxable income. This criterion is re-evaluated at each reporting date.
A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale. Such component represents a separate major line of business or geographical area of operations that can be clearly distinguished, operationally and for financial reporting purposes. The net result of discontinued operations (including possible results on disposal and taxes) is presented separately from the continued operations in the income statement.
The deferred tax assets are only recorded as far that they may be in the future used against taxable income.
The tangible and intangible assets with a fixed useful live are straight line depreciated based on the estimation of the live time of these fixed assets.
Investment properties are amortized using the straight-line method based on an estimate of the duration up to the beginning of the development of the project, date when they are transferred to inventories, and taking into account a residual value estimated at that date.
The goodwill is not amortised but is reviewed for impairment at least annually, or more frequently when there is an indication that one or more cash-generating unit(s) to which the goodwill has been allocated may be impaired.
As part of the impairment tests, the recoverable value of an asset (or cash-generating unit) is estimated based on the present value of the expected cash flows generated by this asset (or cash-generating unit).
For the provisions, the book value fits with the best estimation of the expense necessary to pay off the present obligation (legal or implicit) at closing date.
The projects in inventory and construction contracts are subject to feasibility studies used in determining the net realisable value and any required write down, and if applicable for the release of margin and the computation of the rate of completion. At each closing date, the expenses to be incurred are estimated.
The assessment of the recoverable amount of a project involves assumptions about future events that are inherently subject to change. These assumptions include the expected selling price (depending on the nature of the project, its location, etc…), the estimated total cost per project, the economic market conditions. These assumptions are monitored during the project by the project manager through the update of the feasibility and on a quarterly basis by the management.
The valuation of the revenues from the sale of real estate development involves significant judgments, mainly related to the determination of the existence of an effective contract in accordance with IFRS 15, the assessment of when IMMOBEL meets the performance obligation (at a specific point in time or over time (based on the percentage of completion)), the evaluation of the costs to be incurred and, in case the revenue is recognized at percentage of completion, the determination of the completion rate, taking into account the costs already incurred and the total estimated cost price.
Income from the sale of a project is recognized in gross (sales price and cost of sales) regardless of the structure of the transaction (asset deal / share deal). Disposals of controlled companies dedicated to a project are therefore considered part of the Group's normal business and are therefore recognized as revenue and cost of sales. The Group has decided this presentation taking into account the specificities of its sector and activity.
End December 2019, Immobel was notified with 2 decisions of the Belgian Council of State in a legacy file relating to the purchase of land plots in 2007 from the Université Libre de Bruxelles. A joint venture between Immobel and its partner, Thomas & Piron, obtained in 2014 all necessary building permits for the development of a residential project on the relevant land plot. The decisions of the Council of State of end 2019, however, lead to an annulment of the building permits obtained back in 2014 due to a missing [procedural requirement] at the time of purchase of the land from Université Libre de Bruxelles in 2007. The purchasers of the relevant apartment units were duly informed on the pending legal procedure before the Council of State at the time of purchase of their unit and their purchase deed provides for the right to apply for a judicial rescission of the sale of their unit under certain circumstances, including in case of an untimely regularisation of the relevant building permits. The missing procedural requirement is eligible for regularisation and, at the date hereof, Immobel and its partner Thomas & Piron expect that the financial impact of such right to rescind will not materially impact the financial position of the joint venture partners.
To the Directors' knowledge, there should not be any circumstances likely to have any significant influence on the development of
The Company. With respect to Covid-19 on the economic circumstances and on the financial performance of the company, the Board of Directors assesses on a continuous basis the going concern assumption of the company based on the FY 2021 budget.
IMMOBEL considers that the activities carried out under joint control through temporary vehicles, which do not have a legal personality, meet the definition proposed by the standard IFRS 11 of joint operation, which is a joint agreement by which parties that exercise joint control have rights over the assets, and obligations for the liabilities.
As a consequence, the assets, liabilities, income and expense of the temporary vehicles are included in the financial statements of the Group under each relevant heading of the balance sheet and of the income statement in proportion to the share held by the Group in the temporary vehicle.
A segment is a distinguishable component of the Group, which generates revenues and costs.
The operating results are regularly reviewed by the Management Committee in order to monitor the performance of the various segments in terms of strategic goals, plans and budgets. In this context, the management has opted to follow up the operating results by country.
The segment reporting is presented based on the operational segments used by the Board and Management to monitor the financial performance of the Group, being the geographical segments (by country). The choice made by Management to focus on geographical segment rather than on other possible operating segments is motivated by the new investments or projects in several new countries, which made this criterion more relevant for the follow up of business and better reflecting the organization of the Group.
The core business of the Group, real estate development, is carried out in Belgium, Luxemburg, France, Germany, Poland and Spain.
The breakdown of sales by country depends on the country where the activity is executed.
The results and asset and liability items of the segments include items that can be attributed to a sector, either directly, or allocated through an allocation formula.
In accordance with IFRS, the Company applied since January 1, 2014, IFRS 11, which strongly amends the reading of the financial statements of the Company but does not change the net income and shareholders' equity.
The Board of Directors believes that the financial data in application of the proportional consolidated method (before IFRS 11) give a better picture of the activities and financial statements.
The "Internal" financial statements are those used by the Board and Management to monitor the financial performance of the Group and are presented below.
| INCOME STATEMENT | 31/12/2020 | 31/12/2019 |
|---|---|---|
| OPERATING INCOME | 431 153 | 486 298 |
| Turnover | 413 751 | 470 626 |
| Other operating income | 17 402 | 15 672 |
| OPERATING EXPENSES | -378 746 | -379 551 |
| Cost of sales | -341 373 | -340 310 |
| Cost of commercialisation | -2 410 | -3 253 |
| Administration costs | -34 964 | -35 988 |
| SALE OF SUBSIDIARIES | 133 | 19 618 |
| Gain (loss) on sales of joint ventures and associates | 133 | 19 618 |
| JOINT VENTURES AND ASSOCIATES | 90 | -2 563 |
| Share in the net result of joint ventures and associates | 90 | -2 563 |
| OPERATING RESULT | 52 630 | 123 802 |
| Interest income | 4 810 | 2 374 |
| Interest expense | -12 587 | -9 394 |
| Other financial income / expenses | - 973 | - 949 |
| FINANCIAL RESULT | -8 750 | -7 969 |
| RESULT FROM CONTINUING OPERATIONS BEFORE TAXES | 43 880 | 115 833 |
| Income taxes | -10 587 | -13 482 |
| RESULT FROM CONTINUING OPERATIONS | 33 293 | 102 351 |
| RESULT OF THE YEAR | 33 293 | 102 351 |
| Share of non-controlling interests | 21 | - 85 |
| SHARE OF IMMOBEL | 33 272 | 102 436 |
| TURNOVER | OPERATING RESULT |
TURNOVER | OPERATING RESULT | |
|---|---|---|---|---|
| 31/12/2020 | 31/12/2020 | 31/12/2019 | 31/12/2019 | |
| Belgium | 240 913 | 43 456 | 174 657 | 57 603 |
| Luxembourg | 44 773 | 11 106 | 204 734 | 65 216 |
| France | 64 057 | -8 686 | 70 263 | - 162 |
| Germany | 35 010 | 5 375 | 17 171 | 2 506 |
| Poland | 28 999 | 1 379 | 3 801 | -1 361 |
| Spain | ||||
| TOTAL CONSOLIDATED | 413 751 | 52 630 | 470 626 | 123 802 |
| STATEMENT OF FINANCIAL POSITION | 31/12/2020 | 31/12/2019 |
|---|---|---|
| NON-CURRENT ASSETS | 420 271 | 252 412 |
| Intangible and tangible assets | 2 021 | 1 526 |
| Goodwill | 43 789 | 43 789 |
| Right-of-use assets | 4 390 | 6 441 |
| Investment property | 294 494 | 179 597 |
| Investments and advances to associates | 46 945 | 3 740 |
| Deferred tax assets | 19 813 | 8 321 |
| Other non-current assets | 8 819 | 8 998 |
| CURRENT ASSETS | 1 356 329 | 1 279 702 |
| Inventories | 997 161 | 860 718 |
| Trade receivables | 39 327 | 80 498 |
| Tax receivables and other current assets | 145 363 | 160 521 |
| Cash and cash equivalents | 174 478 | 177 965 |
| TOTAL ASSETS | 1 776 600 | 1 532 114 |
| TOTAL EQUITY | 492 907 | 426 182 |
| NON-CURRENT LIABILITIES | 731 077 | 642 663 |
| Financial debts | 685 169 | 625 530 |
| Deferred tax liabilities | 44 745 | 16 209 |
| Other non-current liabilities | 1 163 | 924 |
| CURRENT LIABILITIES | 552 616 | 463 269 |
| Financial debts | 291 112 | 219 978 |
| Trade payables | 83 177 | 75 884 |
| Tax payables and other current liabilities | 178 327 | 167 407 |
| TOTAL EQUITY AND LIABILITIES | 1 776 600 | 1 532 114 |
| FINANCIAL POSITION ITEMS | NON-CURRENT SEGMENT ASSETS |
CURRENT SEGMENT ASSETS |
UNALLOCA TED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|---|
| Belgium | 209 336 | 878 317 | 1 087 653 | |
| Luxembourg | 43 866 | 244 031 | 287 897 | |
| France | 91 536 | 22 737 | 114 273 | |
| Germany | 1 | 42 286 | 42 287 | |
| Poland | 10 | 10 888 | 10 898 | |
| Spain | 51 | 26 856 | 26 907 | |
| Unallocated items1 | 206 685 | 206 685 | ||
| TOTAL ASSETS | 344 800 | 1 225 115 | 206 685 | 1 776 600 |
| FINANCIAL POSITION ITEMS | SEGMENT LIABILITIES |
UNALLOCA TED ITEMS ¹ |
CONSOLIDATED |
|---|---|---|---|
| Belgium | 845 990 | 845 990 | |
| Luxembourg | 184 339 | 184 339 | |
| France | 96 596 | 96 596 | |
| Germany | 39 789 | 39 789 | |
| Poland | 32 694 | 32 694 | |
| Spain | 24 778 | 24 778 | |
| Unallocated items1 | 59 507 | 59 507 | |
| TOTAL LIABILITIES | 1 224 186 | 59 507 | 1 283 693 |
(1) Unallocated items: Assets: Deferred tax assets - Other non-current financial assets - Other non-current assets - Tax receivables - Other current financial assets - Cash and equivalents - Liabilities: Employee benefit obligations – Provisions - Deferred tax liabilities - Tax liabilities – Derivative financial instruments.
For the analysis of projects in progress by operational segment, inventories should be taken into consideration, as well as investment property, since the latter contains leased out property acquired with a view to be redeveloped.
| INVENTORIES AND INVESTMENT PROPERTY | 31/12/2020 | 31/12/2019 |
|---|---|---|
| Belgium | 761 788 | 631 718 |
| Luxembourg | 245 067 | 175 562 |
| France | 139 603 | 117 458 |
| Germany | 61 875 | 54 955 |
| Poland | 49 367 | 56 925 |
| Spain | 33 955 | 3 697 |
| TOTAL INVENTORIES AND INVESTMENT PROPERTY | 1 291 655 | 1 040 315 |
| 31/12/2020 | |||
|---|---|---|---|
| Operating Segment |
Adjustments | Published Information |
|
| Turnover | 413 751 | -49 272 | 364 479 |
| Operating result | 52 630 | - 2 639 | 49 991 |
| Total balance sheet | 1 776 600 | - 345 463 | 1 431 137 |
For segment information, joint ventures are consolidated using the proportional method. The adjustments result from the application of IFRS 11, resulting in the consolidation of joint ventures using the equity method.
The group generates its revenues through commercial contracts for the transfer of goods and services in the following main revenue categories:
| Cross-analysis by type of project and by geographical zone | Offices | Residentia l Landbanking | 31/12/2020 | |
|---|---|---|---|---|
| Belgium | 100 243 | 97 330 | 19 668 | 217 241 |
| Luxembourg | 1 415 | 25 491 | 26 906 | |
| France | 625 | 55 431 | 56 056 | |
| Germany | 35 010 | 35 010 | ||
| Poland | 562 | 28 704 | 29 266 | |
| Tota l | 102 846 | 241 965 | 19 668 | 364 479 |
| Cross-analysis by type of project and by geographical zone | Offices | Residentia l Landbanking | 31/12/2019 | |
|---|---|---|---|---|
| Belgium | 6 519 | 100 559 | 37 908 | 144 986 |
| Luxembourg | 137 051 | 37 648 | 174 699 | |
| France | 68 243 | 68 243 | ||
| Germany | 17 171 | 17 171 | ||
| Poland | 3 585 | 100 | 3 685 | |
| Tota l | 147 155 | 223 721 | 37 908 | 408 784 |
The diversification of the Group's "customers" portfolio guarantees its independence in the market.
The developments Mobius I, Vaartkom, Parc Seny, O'sea as well as the landbanking activity, contribute in particular to the turnover in Belgium.
From an international viewpoint, the projects Infinity in Luxembourg, Granaria in Poland and Eden Tower Frankfurt in Germany have also contributed to the turnover.
Revenue on commercial contracts is recognized when the customer obtains control of the goods or services sold for an amount that reflects what the entity expects to receive for those goods and services.
The contractual analysis of the Group's sales contracts led to the application of the following recognition principles:
The revenue from office sale contracts is recognized after analysis on a case-by-case basis of the performance obligations stipulated in the contract (land, buildings, commercialisation). The revenue allocated to each performance obligation is recognized:
As of December 31, 2020, no "Office" contract organizing a gradual transfer of control is in progress.
For "Residential" projects, revenue is recognized according to the contractual and legal provisions in force in each country to govern the transfer of control of projects sold in the future state of completion.
The sales revenue is generally recorded when the asset is transferred.
The breakdown of sales according to these different recognition principles is as follows:
| Timing of revenue recognition | |||
|---|---|---|---|
| Point in time | Over time | 31/12/2020 | |
| OFFICES | 102 846 | 102 846 | |
| RESIDENTIAL | 28 704 | 213 261 | 241 965 |
| Residential unit per project - Breyne Act or equivalent | 213 261 | 213 261 | |
| Residential unit per project - Other | 28 704 | 28 704 | |
| LANDBANKING | 19 668 | 19 668 | |
| TOTAL TURNOVER | 151 218 | 213 261 | 364 479 |
| Timing of revenue recognition | |||
|---|---|---|---|
| Point in time | Over time | 31/12/2019 | |
| OFFICES | 147 155 | 147 155 | |
| RESIDENTIAL | 100 | 223 621 | 223 721 |
| Residential unit per project - Breyne Act or equivalent | 223 621 | 223 621 | |
| Residential unit per project - Other | 100 | 100 | |
| LANDBANKING | 37 908 | 37 908 | |
| TOTAL TURNOVER | 185 163 | 223 621 | 408 784 |
Revenues relating to performance obligations unrealized or partially realized at 31 December 2020 amounted to EUR 57,6 million.
It mainly concerns the sales of residential units of which construction is in progress (for the totality of their value or the unrecognized part based on progress of completion) as well as the sales of offices of which the contract analysis deemed to assume that the recognition criteria were not met under IFRS 15.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| OFFICES | ||
| Construction, commercialisation and other contractual arrangements | 10 618 | 143 603 |
| RESIDENTIAL | ||
| Construction of sold units | 46 942 | 70 127 |
| LANDBANKING | ||
| TOTAL | 57 560 | 213 730 |
The Group's management estimates that 83 % of the price allocated to these outstanding performance obligations as at December 31, 2020 will be recognized as revenue in fiscal year 2021.
Break down as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Rental income on projects awaiting future development | 5 031 | 6 832 |
| Other income (recoveries of taxes and withholdings, miscellaneous reinvoicing…) | 5 879 | 3 931 |
| TOTAL OTHER OPERATING INCOME | 10 911 | 10 763 |
Rental income fully relates to leased properties awaiting future development and which are presented as investment properties.
Cost of sales is allocated as follows per geographical area:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | -171 341 | -103 156 |
| Luxembourg | -19 569 | -103 534 |
| France | -53 899 | -65 622 |
| Germany | -28 873 | -14 112 |
| Poland | -27 084 | -4 603 |
| TOTAL COST OF SALES | -300 766 | -291 027 |
And are related to the turnover and the projects mentioned in note 2.
This caption includes the fees paid to third parties in relation with the turnover, which are not capitalized under "Inventories" heading. Cost of commercialization is allocated as follows per geographical area:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | - 599 | -1 396 |
| France | -1 104 | -1 764 |
| TOTAL COST OF COMMERCIALISATION | -1 702 | -3 160 |
Break down as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Personnel expenses | -9 149 | -10 519 |
| Amortisation, depreciation and impairment of assets | -3 684 | -5 788 |
| Other operating expenses | -18 224 | -16 698 |
| TOTAL ADMINISTRATION COSTS | -31 057 | -33 005 |
Break down as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Salaries and fees of personnel and members of the Executive Committee | -19 592 | -21 093 |
| Project monitoring costs capitalized under "inventories" | 13 388 | 13 801 |
| Salaries of the non-executive Directors | - 217 | - 290 |
| Social security charges | -2 770 | -2 644 |
| Pension costs | - 172 | - 14 |
| Other | 214 | - 279 |
| TOTAL PERSONNEL EXPENSES | -9 149 | -10 519 |
The decrease in personnel expenses (before capitalization) is mainly explained by the cost savings measures decided by the management.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Amortisation of intangible and tangible assets, and of investment property | -3 531 | -5 677 |
| Write down on inventories | - 6 | |
| Write down on trade receivables | - 153 | - 105 |
| TOTAL AMORTISATION, DEPRECIATION AND IMPAIRMENT OF ASSETS | -3 684 | -5 788 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Services and other goods | -17 610 | -12 461 |
| Other operating expenses | -1 813 | -2 398 |
| Provisions | 1 198 | -1 839 |
| TOTAL OTHER OPERATING EXPENSES | -18 224 | -16 698 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Service charges of the registered offices | -1 599 | - 531 |
| Third party payment, including in particular the fees paid to third parties and related to the turnover | -7 531 | -7 077 |
| Other services and other goods, including company supplies, advertising, maintenance and repair expense of properties available for sale awaiting for development |
-8 480 | -4 853 |
| TOTAL SERVICES AND OTHER GOODS | -17 610 | -12 461 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Audit fees at consolidation level | - 429 | - 448 |
| Fees for extraordinary services and special missions accomplished within the Group: | - 180 | - 75 |
| - Missions of legal advice | - 12 | - 10 |
| - Tax advice and other missions | - 138 | - 11 |
| - Other missions outside the audit mission | - 30 | - 54 |
The missions outside the audit mission were approved by the Audit & Finance Committee.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Provisions related to the sales | - 430 | 695 |
| Other provisions | 1 629 | -2 534 |
| TOTAL VARIATIONS IN PROVISIONS | 1 198 | -1 839 |
| Increase | -1 322 | -2 534 |
| Use and reversal | 2 520 | 695 |
The net gain realized relates to the sale of 50% of the shares of De Brouckère Land as part of the restructuring with a new partner. Break down as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Sale price of affiliates | 9 792 | 28 508 |
| Book value of sold or liquidated investments | -9 659 | -8 890 |
| GAIN ON SALES OF AFFILIATES | 133 | 19 618 |
The share in the net result of joint ventures and associates breaks down as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Operating result | 13 343 | 11 947 |
| Financial result | -2 195 | -2 767 |
| Income taxes | -3 154 | -4 195 |
| RESULT OF THE PERIOD | 7 994 | 4 985 |
Further information related to joint ventures and associates are described in note 17.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Cost of gross financial debt at amortised cost | -15 543 | -12 314 |
| Activated interests on projects in development | 3 684 | 5 413 |
| Fair value changes | 291 | 227 |
| Interest income | 5 773 | 3 240 |
| Other financial income and expenses | -1 500 | -1 894 |
| FINANCIAL RESULT | -7 295 | -5 328 |
| Cost of gross financial debt at amortised costs | -15 543 | -12 314 |
| Amortization of loan expenses | 292 | 370 |
| Change in interest paid / unpaid | -3 684 | - 595 |
| PAID INTERESTS (STATEMENT OF CASH FLOW) | -18 936 | -12 539 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Current income taxes for the current year | -10 756 | -6 643 |
| Current income taxes for the previous financial years | - 265 | 1 768 |
| Deferred taxes on temporary differences | 2 371 | -4 515 |
| Derecognized deferred tax asset | ||
| TOTAL OF TAX EXPENSES RECOGNIZED IN THE STATEMENT OF COMPREHENSIVE INCOME | -8 650 | -9 390 |
| Current taxes | -11 021 | -4 875 |
| Change in tax receivables / tax payables | 5 009 | -5 731 |
| PAID INCOME TAXES ( STATEMENT OF CASH FLOW) | -6 011 | -10 606 |
The reconciliation of the actual tax charge with the theoretical tax charge is summarised as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Result from continuing operations before taxes | 42 696 | 111 630 |
| Result from joint ventures and associates | -7 994 | -4 985 |
| RESULT BEFORE TAXES AND SHARE IN THE RESULT OF JOINT VENTURES AND ASSOCIATES | 34 702 | 106 645 |
| THEORETICAL INCOME TAXE CHARGE AT : | 25,00% | 29,58% |
| -8 675 | -26 661 | |
| Tax impact | ||
| - non-taxable income | 1 047 | 19 667 |
| - non-deductible expenses | - 703 | -3 421 |
| - use of tax losses and notional interests deduction carried forward on which no DTA was recognised in previous years |
685 | 634 |
| - tax losses of current year on which no DTA is recognised | -1 511 | -1 899 |
| - tax losses of prior years on which a DTA is recognised | 925 | 1 034 |
| - (un)recognized tax latencies | 251 | 54 |
| - different tax rates | 822 | - 566 |
| - Income taxes for the previous financial years | -1 491 | 1 768 |
| TAX CHARGE | -8 650 | -9 390 |
| EFFECTIVE TAX RATE OF THE YEAR | 24,93% | 8,80% |
The basic result per share is obtained by dividing the result of the year (net result and comprehensive income) by the average number of shares.
Basic earnings per share are determined using the following information:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Net result of the yea r | 33 272 | 102 436 |
| Comprehensive income of the yea r | 35 566 | 102 435 |
| Weighted average share outstanding | ||
| Ordinary shares as at 1 January | 9 997 356 | 9 997 356 |
| Treasury shares as at 1 January | -1 212 179 | -1 220 190 |
| Treasury shares granted to a member of the executive committee | ||
| Treasury shares sold | 819 652 | 8 011 |
| Ordina ry sha res a s a t 31 December | 9 604 829 | 8 785 17 7 |
| Weighted a verage ordina ry sha res outstanding | 9 303 809 | 8 782 429 |
| Net result per sha re | 3,576 | 11,664 |
| Comprehensive income per sha re | 3,823 | 11,664 |
To take into account the potential dilutive impact of performance shares, diluted earnings per share are calculated. The calculation of the diluted earnings per share is based on the following data:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Net result of the yea r | 33 272 | 102 436 |
| Comprehensive income of the yea r | 35 566 | 102 435 |
| Weighted average ordinary shares outstanding | 9 303 809 | 8782 429 |
| Dilutive element : performance shares | 1 606 | 12 486 |
| Weighted a verage sha res for diluted ea rnings per sha re | 9 305 415 | 8794 915 |
| Diluted net result per sha re | 3,576 | 11,647 |
| Diluted comprehensive income per sha re | 3,822 | 11,647 |
Intangible assets evolve as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 1 563 | 975 |
| Entry in consolidation scope | 518 | |
| Acquisitions | 201 | 87 |
| Disposals | - 138 | - 17 |
| ACQUISITION COST AT THE END OF THE YEAR | 1 626 | 1 563 |
| AMORTISATION AND IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | -1 020 | - 549 |
| Entry in consolidation scope | - 346 | |
| Amortisation | - 162 | - 142 |
| Depreciation cancelled on disposals | 138 | 17 |
| AMORTISATION AND IMPAIRMENT AT THE END OF THE YEAR | -1 044 | -1 020 |
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 582 | 543 |
The goodwill arises from the acquisition in 2019 of Nafilyan & Partners, an unlisted company based in France that specializes in real estate development.
The acquisition provides to Immobel 100% of the voting shares and the control over Nafilyan & Partners. The acquisition qualifies as a business combination as defined in IFRS 3. The Group has acquired Nafilyan & Partners to enlarge its coverage on the French market by sharing the know-how, expertise and potential synergies with Immobel France.
The reconciliation of the carrying amount of the goodwill at beginning and end of the reporting period is as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 43 789 | |
| Acquisition of Nafilyan & Partners | 43 789 | |
| ACQUISITION COST AT THE END OF THE YEAR | 43 789 | 43 789 |
| IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | ||
| Impairment of the period | ||
| IMPAIRMENT AT THE END OF THE YEAR | ||
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 43 789 | 43 789 |
The carrying amount of the goodwill has been allocated to cash-generating units as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| France | 43 789 | 43 789 |
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 43 789 | 43 789 |
Immobel Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
The recoverable amount of the French segment as a cash-generating unit (including currently known projects and assumed future projects) is determined based on a value in use calculation which uses cash flow projections, based on a "Dividend Discount Model" covering a five-year period, in order to evaluate the equity
This valuation allows to estimate the future dividend payments, discounted back to their present value.
This Net Present Value is hence considering:
Nine simulations have supported the impairment analysis, based on different combinations, as per below:
| Long term growth rate | 2,00% | ||||
|---|---|---|---|---|---|
| with a risk free rate | 1,14% | ||||
| Cost of Equity | |||||
| Beta | Beta | Market Premium | |||
| unlevered | levered | 4,00% | 5,00% | 6,00% | |
| 0,65 | 1,14 | 5,7% | 6,8% | 8,0% | |
| 0,70 | 1,23 | 6,0% | 7,3% | 8,5% | |
| 0,75 | 1,31 | 6,4% | 7,7% | 9,0% |
As a result of this analysis, the fair value exceeds the carrying value, regardless the level of cost of equity considered. Therefore, the management has decided not to recognize any impairment charge in the current year against goodwill.
1 As per following formula: (Risk free rate) + [ (market premium) * (industry beta levered) ]
2 based on OLO 30 years, average of year 2019 from NBB (National Bank of Belgium).
Property, plant and equipment evolve as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 4 181 | 4 155 |
| Entry in consolidation scope | 659 | |
| Acquisitions | 677 | 438 |
| Disposals | - 716 | -1 071 |
| ACQUISITION COST AT THE END OF THE YEAR | 4 142 | 4 181 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | -3 198 | -3 208 |
| Entry in consolidation scope | - 245 | |
| Depreciations | - 269 | - 801 |
| Depreciation cancelled on disposals | 713 | 1 056 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE YEAR | -2 754 | -3 198 |
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 1 388 | 983 |
Property, plant and equipment consist primarily of installation costs of the various registered offices.
The right-of-use assets evolve as follows:
| 31/12/2020 | 31/12/2019 |
|---|---|
| 7 976 | |
| 3 891 | |
| 421 | |
| - 679 | |
| 7 297 | 7 976 |
| -1 535 | |
| - 298 | |
| -1 372 | -1 237 |
| -2 907 | -1 535 |
| 4 390 | 6 441 |
This heading includes leased out property acquired with a view to be redeveloped. Investment property evolve as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD | 87 838 | 108 465 |
| Net carrying value of investment property transferred from/to inventories | -9 471 | |
| Entry in consolidation scope/acquisitions | 127 088 | |
| Disposal/exit from the consolidation scope/transfers | -6 040 | -20 627 |
| ACQUISITION COST AT THE END OF THE YEAR | 199 415 | 87 838 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD | -6 715 | -4 175 |
| Depreciations | -1 591 | -3 497 |
| Depreciations and impairment cancelled following disposal/exit from the consolidation scope/transfers | 6 040 | 957 |
| DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE YEAR | -2 266 | -6 715 |
| NET CARRYING AMOUNT AS AT 31 DECEMBER | 197 149 | 81 123 |
The increase of the net carrying value is mainly due to the acquisition of two projects (Total and Scorpio).
The fair value of the investment property at 31 December 2020 amounts to EUR 197.4 million. This amount is determined on the basis of a valuation of level 3 which does not integrate observable market data and is based on internal analyses (feasibility study sensitive to the expected rent after redevelopment, to the estimated rate of return and to the construction costs to incur).
The contributions of joint ventures and associates in the statement of financial position and the statement of comprehensive income is as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Investments in joint ventures | 98 663 | 47 385 |
| Investments in associates | 7 532 | 8 514 |
| TOTAL INVESTMENTS INCLUDED IN THE STATEMENT OF FINANCIAL POSITION | 106 195 | 55 899 |
| 31/12/2020 | 31/12/2019 | |
| Share in the net result of joint ventures | 7 987 | 9 649 |
| Share in the net result of associates | 7 | -4 664 |
| SHARE OF JOINT VENTURES AND ASSOCIATES IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
7 994 | 4 985 |
| 31/12/2020 | 31/12/2019 | |
| Gain (loss) on sale or liquidation of joint ventures and associates | - 3 | |
| Book value of sold or liquidated investments | 69 | |
| CASH FLOW FROM DISPOSAL OR LIQUIDATION OF JOINT VENTURES AND ASSOCIATES | 66 |
The book value of investments in joint ventures and associates evolve as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| VALUE AS AT 1 JANUARY | 55 899 | 46 451 |
| Share in result | 7 994 | 4 985 |
| Acquisitions and capital injections | 44 214 | 5 488 |
| Scope changes | 9 660 | 1 674 |
| Dividends received from joint ventures and associates | -10 533 | -2 630 |
| Disposals or liquidation of joint ventures and associates | - 69 | |
| Repayment of capital | -1 039 | |
| Currency translation | ||
| CHANGES FOR THE YEAR | 50 296 | 9 448 |
| VALUE AS AT 31 DECEMBER | 106 195 | 55 899 |
The table below shows the contribution of joint ventures and associates in the statement of financial position and the statement of comprehensive income.
146
| % INTEREST | BOOK VALUE OF THE INVESTMENTS |
SHARE IN THE COMPREHENSIVE INCOME | ||||
|---|---|---|---|---|---|---|
| NAME | 31/12/2020 | 31/12/2019 | 31/12/2020 | 31/12/2019 | 31/12/2020 | 31/12/2019 |
| Bella Vita | 50% | 50% | 54 | 70 | - 16 | - 42 |
| Boralina Investments, S.L. | 50% | -2 884 | ||||
| Brouckère Tower Invest | 50% | 29 059 | 386 | |||
| CBD International | 50% | 50% | -1 431 | -1 938 | 508 | - 140 |
| Château de Beggen | 50% | 50% | 17 | 655 | 78 | |
| Cityzen Holding | 50% | 50% | - 19 | - 13 | - 7 | - 13 |
| Cityzen Hotel | 50% | 50% | 564 | 510 | 55 | 66 |
| Cityzen Office | 50% | 50% | 1 546 | 1 382 | 164 | 163 |
| Cityzen Residence | 50% | 50% | 561 | 483 | 78 | 40 |
| CP Development Sp. z o.o. | 50% | 50% | - 59 | - 83 | 23 | - 83 |
| CSM Development | 50% | 50% | 24 | 29 | - 5 | - 1 |
| CSM Properties | 50% | 50% | 3 900 | 3 609 | 291 | 75 |
| Debrouckère Development Debrouckère Land (ex-Mobius I) |
50% 50% |
50% | 548 102 |
616 | - 68 67 |
- 9 |
| Debrouckère Leisure | 50% | 2 310 | - 15 | |||
| Debrouckère Office | 50% | 3 770 | 20 | |||
| Gateway | 50% | 50% | 322 | 325 | - 3 | - 2 |
| Goodways SA | 50% | 50% | 3 237 | 3 300 | - 63 | 155 |
| Ilot Ecluse | 50% | 50% | 165 | 168 | - 3 | - 6 |
| Immo Keyenveld 1 | - 7 | |||||
| Immo Keyenveld 2 | - 7 | |||||
| Immo PA 33 1 | 50% | 50% | 1 272 | 1 436 | - 35 | 131 |
| Immo PA 44 1 | 50% | 50% | 683 | 846 | - 13 | 218 |
| Immo PA 44 2 | 50% | 50% | 2 385 | 2 643 | 416 | 711 |
| Immobel Marial SàRL | 50% | 8 | 2 | |||
| Key West Development | 50% | 50% | 471 | 522 | - 52 | - 103 |
| Les Deux Princes Develop. | 50% | 50% | -1 755 | 1 970 | 1 075 | 1 656 |
| Livingstone Retail S.à.r.l. | 33% | 4 | ||||
| M1 | 33% | 33% | 5 603 | 4 984 | 2 993 | 6 096 |
| M7 | 33% | 33% | 132 | 756 | 46 | 280 |
| Mobius II | 50% | 50% | 8 121 | 8 171 | - 50 | - 37 |
| NP_AUBER | 50% | 50% | - 89 | 11 | - 100 | - 13 |
| NP_AUBER_VH NP_AUBERVIL |
50% 50% |
50% 50% |
681 - 17 |
474 - 14 |
207 - 2 |
206 - 9 |
| NP_BESSANC2 | 50% | 50% | 149 | - 17 | 219 | - 42 |
| NP_BESSANCOU | 50% | 50% | 185 | - 70 | 202 | - 10 |
| NP_CHARENT1 | 50% | 51% | 34 | 58 | - 24 | - 78 |
| NP_CRETEIL | 50% | 50% | - 1 | - 1 | ||
| NP_EPINAY | 50% | 50% | - 49 | - 93 | 44 | - 22 |
| NP_VAIRES | 50% | 50% | 1 417 | 1 001 | 416 | 370 |
| ODD Construct | 50% | 50% | 682 | 17 | 665 | - 9 |
| PA_VILLA | 51% | 51% | - 40 | - 47 | 7 | - 9 |
| Plateau d'Erpent | 50% | 50% | 838 | 170 | 668 | 158 |
| RAC3 | 40% | 40% | 3 264 | 3 129 | 135 | 125 |
| RAC4 | 40% | 40% | 1 331 | 2 856 | 438 | - 247 |
| RAC4 Developt | 40% | 40% | 1 587 | 1 349 | - 2 | - 12 |
| RAC5 | 40% | 40% | 5 451 | 5 259 | 192 | 132 |
| RAC6 | 40% | 2 168 | 206 | |||
| Surf Club Marbella Beach, S.L. | 50% | 19 855 | - 775 | |||
| Surf Club Spain Invest Property SL Unipark |
50% 50% |
50% 50% |
- 61 4 063 |
- 35 4 033 |
23 30 |
- 86 160 |
| Universalis Park 2 | 50% | 50% | -1 627 | -1 470 | - 156 | - 147 |
| Universalis Park 3 | 50% | 50% | -2 249 | -2 058 | - 192 | - 191 |
| Universalis Park 3AB | 50% | 50% | 1 967 | 1 970 | - 4 | 281 |
| Universalis Park 3C | 50% | 50% | 418 | 421 | - 4 | - 127 |
| TOTAL JOINT VENTURES | 98 663 | 47 385 | 7 987 | 9 649 | ||
| DHR Clos du Château | 33% | 33% | 106 | 16 | 90 | - 9 |
| Elba Advies | 151 | |||||
| Graspa Development | ||||||
| Nafilyan | -2 553 | |||||
| ULB Holding Urban Living Belgium |
60% 30% |
60% 30% |
-5 363 12 789 |
-5 152 13 650 |
- 210 128 |
- 319 -1 934 |
| TOTAL ASSOCIATES | 7 532 | 8 514 | 7 | -4 664 | ||
| TOTAL JOINT VENTURES AND ASSOCIATES | 106 195 | 55 899 | 7 994 | 4 985 |
The table below presents condensed financial information of joint ventures and associates of the Group. The amounts reported are the amounts determined in accordance with IFRS, before elimination of intercompany.
| FIGURES AT 100% | ||||||||
|---|---|---|---|---|---|---|---|---|
| TURNOVER | COMPREHENSIVE | TOTAL | TOTAL | TOTAL | TOTAL EQUITY ALLOCATED TO |
SHAREHOLDER LOANS BY THE |
||
| AS AT 31 DECEMBER 2020 | INCOME | ASSETS | LIABILITIES | EQUITY | THE GROUP | GROUP | ||
| Bella Vita | 0 | - 33 | 375 | 268 | 108 | 54 | 0 | |
| Boralina Investments, S.L. | 0 | - 1 | 41 705 | 6 108 | 35 597 | -2 884 | 0 | |
| Brouckère Tower Invest | 0 | 772 | 154 834 | 96 717 | 58 117 | 29 059 | 0 | |
| CBD International | 7 | 1 016 | 41 853 | 45 137 | -3 284 | -1 431 | 18 720 | |
| Château de Beggen | 0 | 0 | 239 | 204 | 35 | 17 | 0 | |
| Cityzen Holding | 0 | - 14 | 20 454 | 16 282 | 4 172 | - 19 | 8 138 | |
| Cityzen Hotel | 0 | 109 | 19 287 | 18 158 | 1 129 | 564 | 15 234 | |
| Cityzen Office | 0 | 328 | 82 970 | 79 878 | 3 091 | 1 546 | 0 | |
| Cityzen Residence | 0 | 155 | 19 354 | 18 232 | 1 121 | 561 | 15 217 | |
| CP Development Sp. z o.o. | 0 | 46 | 46 863 | 46 982 | - 119 | - 59 | 0 | |
| CSM Development | 0 | - 11 | 2 833 | 2 785 | 48 | 24 | 1 646 | |
| CSM Properties | 0 | 583 | 104 041 | 96 241 | 7 800 | 3 900 | 44 | |
| Debrouckère Development | 1 906 | - 135 | 4 176 | 3 080 | 1 096 | 548 | 1 338 | |
| Debrouckère Land (ex-Mobius I) | 43 004 | 11 550 | 25 734 | 25 530 | 203 | 102 | 0 | |
| Debrouckère Leisure | 0 | - 30 | 5 458 | 838 | 4 620 | 2 310 | 29 | |
| Debrouckère Office | 0 | 40 | 16 237 | 8 697 | 7 540 | 3 770 | 0 | |
| Gateway | 0 | - 6 | 647 | 3 | 644 | 322 | 0 | |
| Goodways SA | 0 | - 126 | 21 711 | 17 928 | 3 783 | 3 237 | 2 858 | |
| Ilot Ecluse | 0 | - 6 | 375 | 45 | 330 | 165 | 40 | |
| Immo PA 33 1 | 537 | - 69 | 3 496 | 953 | 2 543 | 1 272 | 0 | |
| Immo PA 44 1 | 1 360 | - 26 | 2 741 | 1 375 | 1 366 | 683 | 0 | |
| Immo PA 44 2 | 4 081 | 832 | 9 543 | 4 774 | 4 769 | 2 385 | 0 | |
| Immobel Marial SàRL | 0 | 4 | 2 181 | 2 165 | 16 | 8 | 958 | |
| Key West Development | 0 | - 104 | 10 729 | 9 787 | 941 | 471 | 4 733 | |
| Les Deux Princes Develop. | 14 545 | 2 150 | 3 419 | 6 929 | -3 510 | -1 755 | 0 | |
| Livingstone Retail S.à.r.l. | 0 | 0 | 12 | 0 | 12 | 4 | 0 | |
| M1 | 54 660 | 8 979 | 52 610 | 35 788 | 16 822 | 5 603 | -2 500 | |
| M7 | 0 | 137 | 1 006 | 611 | 395 | 132 | 0 | |
| Mobius II | 0 | - 100 | 56 356 | 40 113 | 16 242 | 8 121 | 7 913 | |
| NP_AUBER | 0 | - 199 | 1 147 | 1 325 | - 178 | - 89 | 251 | |
| NP_AUBER_VH | 4 940 | 413 | 5 044 | 3 685 | 1 359 | 681 | 158 | |
| NP_AUBERVIL | 0 | - 5 | 1 984 | 2 017 | - 33 | - 17 | 922 | |
| NP_BESSANC2 | 6 540 | 438 | 6 477 | 6 179 | 298 | 149 | 1 322 | |
| NP_BESSANCOU | 66 | 403 | 509 | 140 | 370 | 185 | 145 | |
| NP_CHARENT1 | 2 947 | - 48 | 7 591 | 7 524 | 67 | 34 | 475 | |
| NP_CRETEIL | 0 | - 1 | 708 | 710 | - 2 | - 1 | 380 | |
| NP_EPINAY NP_VAIRES |
3 838 | 89 | 3 808 | 3 906 | - 98 | - 49 | 1 177 | |
| ODD Construct | 6 770 | 830 | 11 472 | 8 644 | 2 828 | 1 417 | 1 851 | |
| PA_VILLA | 7 710 | 1 330 | 3 747 | 2 383 | 1 364 | 682 | 562 | |
| Plateau d'Erpent | 0 | 13 | 4 030 | 4 110 | - 79 | - 40 | 47 | |
| RAC3 | 9 125 | 1 335 | 20 395 | 18 720 | 1 675 | 838 | 1 679 | |
| RAC4 | 11 | 338 | 8 173 | 14 | 8 159 | 3 264 | 0 | |
| RAC4 Developt | 0 | 1 094 | 31 619 | 28 290 | 3 329 | 1 331 | 0 | |
| RAC5 | 0 0 |
- 4 481 |
4 640 14 056 |
672 428 |
3 968 13 628 |
1 587 5 451 |
160 0 |
|
| RAC6 | 0 | 515 | 13 495 | 8 075 | 5 420 | 2 168 | 0 | |
| Surf Club Marbella Beach, S.L. | 0 | -1 549 | 81 303 | 41 593 | 39 710 | 19 855 | 3 000 | |
| Surf Club Spain Invest Property SL | 0 | 46 | 7 809 | 7 932 | - 123 | - 61 | 0 | |
| Unipark | 1 | 61 | 10 517 | 2 391 | 8 126 | 4 063 | 0 | |
| Universalis Park 2 | 0 | - 313 | 22 514 | 25 768 | -3 254 | -1 627 | 6 532 | |
| Universalis Park 3 | ||||||||
| Universalis Park 3AB | 0 0 |
- 383 - 8 |
32 783 4 365 |
37 281 432 |
-4 499 3 933 |
-2 249 1 967 |
8 588 0 |
|
| Universalis Park 3C | 0 | - 7 | 1 009 | 174 | 835 | 418 | 0 | |
| TOTAL JOINT VENTURES | 162 047 | 30 910 | 1050 433 | 798 001 | 252 431 | 98 667 | 101 617 | |
| DHR Clos du Château | 1 625 | 270 | 1 491 | 1 172 | 319 | 106 | 376 | |
| ULB Holding | 0 | - 351 | 18 245 | 18 678 | - 432 | -5 363 | 5 593 | |
| Urban Living Belgium | 16 477 | 989 | 192 165 | 172 452 | 19 713 | 12 789 | 21 022 | |
| TOTAL ASSOCIATES | 18 101 | 908 | 211 901 | 192 302 | 19 599 | 7 532 | 26 991 | |
| TOTAL JOINT VENTURES | ||||||||
| AND ASSOCIATES | 180 148 | 31 818 | 1262 334 | 990 303 | 272 031 | 106 199 | 128 608 |
| INVENTORIES AND | |||||
|---|---|---|---|---|---|
| Main components of assets and liabilities: | Main projects and financial debts | INVESTMENT | |||
| PROPERTY FINANCIAL DEBTS | |||||
| Investment property | 195 255 | Cityzen Office | 54 675 | 68 000 | |
| Other fixed assets | 76 985 | CSM Properties | 102 372 | 96 150 | |
| Inventories | 674 872 | Mobius II | 55 931 | 22 470 | |
| Cash and cash equivalents | 67 246 | RAC4 | 22 777 | 28 000 | |
| Receivables and other assets | 247 976 | Universalis Park 2 | 22 183 | 12 700 | |
| Non-current financial debts | 205 315 | Universalis Park 3 | 32 598 | 18 930 | |
| Current Financial debts | 279 950 | Urban Living Belgium | 151 376 | 76 982 | |
| Deferred tax liabilities | 16 459 | Debrouckère Land (ex-Mobius I) | 21 318 | 21 150 | |
| Shareholder's loans | 151 017 | CP Development Sp. z o.o. | 44 717 | 15 968 | |
| Other Liabilities | 337 562 | Brouckère Tower Invest | 148 601 | 92 977 | |
| TOTAL | 1 262 334 | 990 303 | Surf Club Marbella Beach, S.L. | 61 752 | |
| Others | 151 825 | 31 937 | |||
| TOTAL | 870 127 | 485 265 |
| FIGURE S 100% | TOTAL EQUITY | SHAREHOLDER | |||||
|---|---|---|---|---|---|---|---|
| AS AT 31 DECEMBER 2019 | TURNOVER | COMPREHENSIVE INCOME |
TOTAL ASSE TS | TOTAL LIABILITIE S |
TOTAL EQUITY | ALLOCATED TO THE GROUP |
LOANS BY THE GROUP |
| Bella Vita | 12 | - 84 | 400 | 259 | 141 | 70 | |
| CBD International | 231 | - 281 | 34 523 | 38 823 | -4 300 | -1 938 | 14 201 |
| Château de Beggen | 155 | 1 569 | 259 | 1 310 | 655 | ||
| Cityzen Holding | - 25 | 20 168 | 15 983 | 4 185 | - 13 | 7 990 | |
| Cityzen Hotel | 132 | 19 227 | 18 208 | 1 019 | 510 | 14 937 | |
| Cityzen Office | 326 | 82 203 | 79 440 | 2 763 | 1 382 | -27 702 | |
| Cityzen Residence | 79 | 19 219 | 18 253 | 966 | 483 | 14 937 | |
| CSM Development | - 3 | 409 | 350 | 59 | 29 | 141 | |
| CSM Properties | 150 | 107 306 | 100 089 | 7 217 | 3 609 | 810 | |
| Debrouckère Development | - 18 | 2 808 | 1 577 | 1 231 | 616 | 250 | |
| Gateway | - 3 | 651 | 1 | 650 | 325 | ||
| Goodways | 309 | 22 221 | 18 312 | 3 909 | 3 300 | 7 709 | |
| Ilot Ecluse | - 12 | 379 | 43 | 336 | 168 | 39 | |
| Immo Keyenveld 1 | - 14 | ||||||
| Immo Keyenveld 2 | - 14 | ||||||
| Immo PA 33 1 | 2 702 | 262 | 4 148 | 1 276 | 2 872 | 1 436 | |
| Immo PA 44 1 | 2 182 | 436 | 2 974 | 1 282 | 1 692 | 846 | |
| Immo PA 44 2 | 6 551 | 1 422 | 9 315 | 4 028 | 5 287 | 2 643 | |
| Key West Development | - 205 | 10 041 | 8 996 | 1 045 | 522 | ||
| Les Deux Princes Developement | 24 058 | 3 313 | 5 819 | 1 879 | 3 940 | 1 970 | |
| M1 | 83 297 | 18 290 | 65 894 | 50 940 | 14 954 | 4 984 | |
| M7 | 7 230 | 840 | 3 640 | 1 372 | 2 268 | 756 | |
| Möbius II | - 74 | 34 635 | 18 293 | 16 342 | 8 171 | 3 723 | |
| NP Auber RE SCCV | - 41 | 1 149 | 373 | 776 | 11 | 607 | |
| NP Auber Victor Hugo SCCV | - 29 | 3 828 | 4 020 | - 192 | 474 | 157 | |
| NP Aubervilliers 1 SCCV | - 17 | 1 260 | 1 288 | - 28 | - 14 | 555 | |
| NP Bessancourt 1 SCCV | -1 011 | 339 | 702 | - 363 | - 17 | 145 | |
| NP Bessancourt 2 SCCV | - 141 | 635 | 774 | - 139 | - 70 | 535 | |
| NP Charenton Le Pont SCCV | - 2 | 4 836 | 4 945 | - 109 | 58 | 476 | |
| NP Creteil SCCV | 670 | 670 | 360 | ||||
| NP Epinay s/ Orge SCCV | - 189 | 3 423 | 3 612 | - 189 | - 93 | 1 035 | |
| NP Vaires s/ Marne SCCV | - 53 | 5 101 | 5 538 | - 437 | 1 001 | 1 851 | |
| ODD Construct | 600 | - 18 | 1 572 | 1 538 | 34 | 17 | 551 |
| PA Villa Colomba SCCV | 2 063 | 2 136 | - 73 | - 47 | 48 | ||
| Plateau d'Erpent | 201 | 16 726 | 16 386 | 340 | 170 | 4 006 | |
| RAC 3 | 313 | 7 854 | 32 | 7 822 | 3 129 | ||
| RAC 4 | - 618 | 41 778 | 34 639 | 7 139 | 2 856 | ||
| RAC4 Developement | - 31 | 3 393 | 21 | 3 372 | 1 349 | ||
| RAC 5 | 331 | 13 499 | 352 | 13 147 | 5 259 | ||
| SPV WW 13 | - 166 | 23 023 | 23 188 | - 165 | - 83 | ||
| Surf Club Spain Invest Property | - 172 | 7 587 | 7 656 | - 69 | - 35 | 3 799 | |
| Unipark | 7 002 | 319 | 10 796 | 2 731 | 8 065 | 4 033 | |
| Universalis Park 2 | - 294 | 21 729 | 24 670 | -2 941 | -1 470 | 6 070 | |
| Universalis Park 3 | - 383 | 31 945 | 36 061 | -4 116 | -2 058 | 7 993 | |
| Universalis Park 3AB | 2 519 | 562 | 4 797 | 857 | 3 940 | 1 970 | 229 |
| Universalis Park 3C | - 253 | 1 327 | 485 | 842 | 421 | 159 | |
| TOTAL JOINT VENTURE S | 136 384 | 23 289 | 656 879 | 552 337 | 104 542 | 47 385 | 65 611 |
| DHR Clos du Château | - 28 | 2 098 | 2 049 | 49 | 16 | 372 | |
| Elba Advies | 251 | ||||||
| ULB Holding | - 532 | 18 234 | 18 316 | - 82 | -5 152 | ||
| Urban Living Belgium | 24 548 | -5 846 | 175 089 | 155 375 | 19 714 | 13 650 | 21 252 |
| TOTAL ASSOCIATE S | 24 548 | -6 155 | 195 421 | 175 740 | 19 681 | 8 514 | 21 624 |
| TOTAL JOINT VENTURE S AND ASSOCIATE S |
160 932 | 17 134 | 852 300 | 728 07 7 | 124 223 | 55 899 | 87 235 |
| Ma in components of a ssets and liabilities : | Ma in projects and financia l debts: | INVENTORIE S AND INVE STMENT PROPERTY |
FINANCIAL DEBTS |
||
|---|---|---|---|---|---|
| Investment property | 197 552 | Central Point | 33 230 | ||
| Other fixed assets | 22 054 | Cityzen | 90 903 | 70 500 | |
| Inventories | 440 046 | CSM | 104 220 | 97 637 | |
| Cash and cash equivalents | 58 885 | Goodways | 20 609 | 3 944 | |
| Receivables and other assets | 133 763 | Möbius II | 33 286 | 9 074 | |
| Non-current financial debts | 269 359 | M1 M7 | 25 569 | ||
| Current financial debts | 42 322 | Nafilyan | 51 486 | 2 781 | |
| Deferred tax liabilities | 1 801 | RAC(s) | 30 348 | 28 000 | |
| Shareholder's loans | 120 990 | Universalis Park | 54 936 | 31 630 | |
| Other liabilities | 293 605 | Urban Living Belgium | 149 477 | 67 461 | |
| TOTAL | 852 300 | 728 07 7 | Others | 43 534 | 654 |
| TOTAL | 637 598 | 311 681 |
In case of financial debts towards credit institutions, the shareholder loans reimbursements (reimbursement of cash to the mother company) are subordinated to the reimbursements towards credit institutions.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Amount of debts guaranteed by securities | 285 484 | 356 018 |
| Book value of Group's assets pledged for debt securities | 260 839 | 311 681 |
For the main debts towards credit institutions mentioned above, the company IMMOBEL SA has engaged itself to provide the necessary financial means in order to bring the different projects to a good end ("cash deficiency" and "cost overrun" engagements). There are no significant restrictions which limit the Group's ability to access the assets of joint ventures and associates, nor specific risks or commitments other than those relating to bank loans.
Other non-current financial assets relate to investments in shares or bonds, and are allocated as follows per geographical area:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 175 | 29 |
| France | 4 891 | |
| TOTAL OTHER NON-CURENT FINANCIAL ASSETS | 175 | 4 920 |
Deferred tax assets or liabilities are recorded in the balance sheet on deductible or taxable temporary differences, tax losses and tax credits carried forward. Changes in the deferred taxes in the balance sheet having occurred over the financial year are recorded in the statement of income unless they refer to items directly recognised under other comprehensive income.
Deferred taxes on the balance sheet refer to the following temporary differences:
| DEFERRED TAX ASSETS | DEFERRED TAX LIABILITIES | |||
|---|---|---|---|---|
| 31/12/2020 | 31/12/2019 | 31/12/2020 | 31/12/2019 | |
| Tax losses and tax latencies | 18 202 | 11 574 | ||
| Revenue recognition | 2 115 | 1 344 | 41 380 | 22 155 |
| Financial debts | ||||
| Fair value of financial instruments | 40 | 73 | 4 | |
| Other items | 21 | 91 | - 74 | |
| Netting (net tax position per entity) | -4 009 | -6 708 | -4 009 | -6 708 |
| TOTAL | 16 369 | 6 374 | 37 301 | 15 447 |
| VALUE AS AT 1 JANUARY | 6 374 | 15 447 |
|---|---|---|
| Scope changes | 1 605 | -1 099 |
| Deferred tax recognised in the consolidated statement of comprehensive income |
8 390 | 22 953 |
| VALUE AS AT 31 DECEMBER | 16 369 | 37 301 |
Based on the situation per 31 December 2020, each change in tax rate of 1% involves an increase or decrease of taxes of EUR 837 thousand.
| TEMPORARY DIFFERENCES OR TAX LOSSES FOR WHICH NO DEFERRED TAX ASSETS ARE | |
|---|---|
| RECOGNISED IN THE BALANCE SHEET, FROM WHICH: | 24 981 |
| Expiring at the end of 2021 | 111 |
| Expiring at the end of 2022 | 528 |
| Expiring at the end of 2023 | 102 |
| Expiring at the end of 2024 | 2 022 |
| Expiring at the end of 2025 | 1 813 |
| Not time-limited | 20 405 |
Other non-current assets relate exclusively to cash guarantees and deposits, and are allocated as follows per geographical area:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 556 | 72 |
| Luxembourg | ||
| France | 839 | 785 |
| Germany | 148 | 2 890 |
| Poland | 146 | |
| TOTAL OTHER NON-CURENT ASSETS | 1 689 | 3 747 |
Inventories consist of buildings and land acquired for development and resale. Allocation of inventories by geographical area is as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 311 038 | 338 496 |
| Luxembourg | 196 192 | 143 595 |
| France | 92 290 | 117 142 |
| Germany | 61 875 | 54 955 |
| Poland | 21 396 | 40 098 |
| Spain | 331 | 294 |
| TOTAL INVENTORIES | 683 121 | 694 580 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| INVENTORIES AS AT 1 JANUARY | 694 580 | 511 837 |
| Net book value of investment property transferred from/to inventories | 9 471 | |
| Purchases of the year | 10 976 | 51 376 |
| Developments | 271 981 | 373 721 |
| Disposals of the year | -300 766 | -291 027 |
| Borrowing costs | 3 684 | 4 892 |
| Scope changes | -6 805 | 43 787 |
| Write-off | - 6 | |
| CHANGES FOR THE YEAR | -11 459 | 182 743 |
| INVENTORIES AS AT 31 DECEMBER | 683 121 | 694 580 |
| Break down of the movements of the year per operational sector : |
Purchases/ Develop ments |
Disposals | Borrowing | costs Scope changes | Transfer of the net book value |
Net |
|---|---|---|---|---|---|---|
| Belgium | 95 595 | -171 341 | 372 | -6 805 | 54 720 | -27 458 |
| Luxembourg | 70 983 | -19 569 | 1 183 | 52 597 | ||
| France | 72 334 | -53 899 | 1 962 | -45 249 | -24 852 | |
| Germany | 35 793 | -28 873 | 6 920 | |||
| Poland | 8 216 | -27 084 | 166 | -18 702 | ||
| Spain | 37 | 37 | ||||
| Total | 282 958 | -300 766 | 3 684 | -6 805 | 9 471 | -11 459 |
| 12 months | 527 925 |
|---|---|
| > 12 months | 155 196 |
| Breakdwon of the stock by type: | |
| Without permit | 483 442 |
| Permit obtained but not yet in development | |
| In development | 199 679 |
Trade receivables refer to the following operational segments:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 7 206 | 10 733 |
| Luxembourg | 2 404 | 520 |
| France | 13 116 | 56 063 |
| Germany | 8 050 | 1 948 |
| Poland | 240 | 3 252 |
| Spain | 2 152 | |
| TOTAL TRADE RECE IVABLES | 33 168 | 72 516 |
| The analysis of the delay of payment arises as follows: | 31/12/2020 | 31/12/2019 |
|---|---|---|
| Due < 3 months | 9 388 | 5 151 |
| Due > 3 months < 6 months | 845 | 826 |
| Due > 6 months < 12 months | 2 389 | 2 742 |
| Due > 1 year | 1 248 | 885 |
The credit risk is related to the possible failure of the customers in respecting their commitments towards the Group and is considered immaterial, especially since in most cases the asset sold serves as collateral (guarantee).
At 31 December 2019, there was no concentration of credit risk with a sole third party. The maximum risk amounts to the book value of the receivables. However, within the meaning of IFRS 9, there is no expected credit loss that can be deemed significant at that date. The impairments recorded on trade receivables evolve as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| BALANCE AT 1 JANUARY | 473 | 368 |
| Additions | 69 | 105 |
| MOVEMENTS OF THE YEAR | 69 | 105 |
| BALANCE AT 31 DECEMBER | 542 | 473 |
Contract assets, arising from the application of IFRS 15, refer to the following operational segments:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 9 315 | 7 278 |
| Luxembourg | 7 610 | 21 060 |
| France | 21 108 | |
| Germany | 19 218 | 13 890 |
| TOTAL CONTRACT ASSETS | 57 251 | 42 228 |
The increase of contract assets in France is due to a reclass of trades receivable to contract assets.
Upon initial recognition, the Group measures trade receivables at their transaction price as defined by IFRS 15. Contract assets include the amounts to which the entity is entitled in exchange for goods or services that it already has provided to a customer but for which the payment is not yet due or is subject to the fulfilment of a specific condition provided for in the contract.
When an amount becomes due, it is transferred to the receivable account.
A trade receivable is recognized as soon as the entity has an unconditional right to collect a payment. This unconditional right exists from the moment in time which makes the payment due.
It is expected that the entire amount reflected as at December 31, 2020 will become due and be cashed in fiscal year 2021.
In the same way as trade receivables and other receivables, contract assets are subject to an impairment test in accordance with the provisions of IFRS 9 on expected credit losses. This test does not show any significant potential impact since these contract assets (and their related receivables) are generally covered by the underlying assets represented by the building to be transferred.
The components of this item are:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Other receivables | 30 435 | 36 636 |
| of which : advances and guarantees paid | 2 013 | |
| taxes (other than income taxes) and VAT receivable | 17 589 | 26 656 |
| receivable upon sale (escrow account) | 3 075 | 142 |
| other | 9 771 | 7 825 |
| Deferred charges and accrued income | 6 834 | 5 301 |
| of which: on projects in development | 190 | |
| other | 6 644 | 5 301 |
| TOTAL OTHER CURRENT ASSETS | 37 269 | 41 937 |
The Group's net financial debt is the balance between the cash and cash equivalents and the financial debts (current and non-current). It amounts to EUR -603 890 thousand as at 31 December 2020 compared to EUR -550 925 thousand as at 31 December 2019.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Cash and cash equivalents | 173 009 | 156 146 |
| Non current financial debts | 591 558 | 507 008 |
| Current financial debts | 185 341 | 200 063 |
| NET FINANCIAL DEBT | -603 890 | -550 925 |
The Group's gearing ratio (net financial debt / equity) is 122,1% as at 31 December 2020, compared to 128,7% as at 31 December 2019.
Cash deposits and cash at bank and in hand amount to EUR 148 059 thousand compared to EUR 156 146 thousand at the end of 2019, representing a decrease of EUR 8 087 thousand. The breakdown of cash and cash equivalents is as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Term deposits with an initial duration of maximum 3 months | ||
| Cash at bank and in hand | 148 059 | 156 146 |
| AVAILABLE CASH AND CASH EQUIVALENTS | 148 059 | 156 146 |
The explanation of the change in available cash is given in the consolidated cash flow statement. Cash and cash equivalents are fully available, either for distribution to the shareholders or to finance projects owned by the different companies.
Financial debts increase with EUR 48 878 thousand, from EUR 707 071 thousand at 31 December 2019 to EUR 751 949 thousand at 31 December 2020. The components of financial debts are as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Bond issues: | ||
| Bond issue maturity 31-05-2022 at 3.00% - nominal amount 100 MEUR | 99 709 | 99 515 |
| Bond issue maturity 17-10-2023 at 3.00% - nominal amount 50 MEUR | 50 000 | 50 000 |
| Bond issue maturity 17-10-2025 at 3.50% - nominal amount 50 MEUR | 50 000 | 50 000 |
| Bond issue maturity 14-04-2027 at 3.00% - nominal amount 75 MEUR | 75 000 | 75 000 |
| Lease contracts | 2 872 | 5 060 |
| Credit institutions | 293 558 | 227 433 |
| NON CURRENT FINANCIAL DEBTS | 571 139 | 507 008 |
| Credit institutions | 175 131 | 195 590 |
| Lease contracts | 1 614 | 1 502 |
| Bonds - not yet due interest | 4 065 | 2 971 |
| CURRENT FINANCIAL DEBTS | 180 810 | 200 063 |
| TOTAL FINANCIAL DEBTS | 751 949 | 707 071 |
| Financial debts at fixed rates | 274 709 | 274 515 |
| Financial debts at variable rates | 473 175 | 429 585 |
| Bonds - not yet due interest | 4 065 | 2 971 |
| Amount of debts guaranteed by securities | 468 690 | 423 023 |
| Book value of Group's assets pledged for debt securities | 816 694 | 590 941 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| FINANCIAL DEBTS AS AT 1 JANUARY | 707 071 | 515 789 |
| Liabilities resulting from the implementation of IFRS 16 (lease contracts) as per January 1, 2019 | 3 891 | |
| Repaid liabilities related to lease contracts | -2 872 | |
| Contracted debts | 303 861 | 291 307 |
| Repaid debts | -252 905 | -91 965 |
| Change in the fair value recognized in the statement of comprehensive income | ||
| Scope changes | -10 986 | |
| Bonds - paid interest | -8 500 | -7 453 |
| Bonds - not yet due interest | 1 094 | 4 021 |
| Not yet due interest on other loans | 4 005 | 2 097 |
| Amortization of deferred debt issue expenses | 195 | 370 |
| CHANGES FOR THE YEAR | 44 878 | 191 282 |
| FINANCIAL DEBTS AS AT 31 DECEMBER | 751 949 | 707 071 |
All the financial debts are denominated in EUR.
Except for the bonds, the financing of the Group and the financing of the Group's projects are provided based on a short-term rate, the 1 to 12 month euribor, increased by margin.
As of December 31, 2020, IMMOBEL is entitled to use undrawn Corporate credit lines of EUR 76 million, has non-issued commercial paper of EUR 26,5 million and EUR 639 million of confirmed project finance lines of which EUR 354 million were used.
These credit lines (Project Financing Credits) are specific for the development of certain projects.
At December 31, 2020, the book value of Group's assets pledged to secure the corporate credit and the project financing credits amounts to EUR 817 million.
The table below summarizes the maturity of the financial liabilities of the Group:
| DUE IN | 2021 | 2022 | 2023 | 2024 | 2025 | 2025 and more | Total |
|---|---|---|---|---|---|---|---|
| Bonds (*) | 100 000 | 50 000 | 125 000 | 275 000 | |||
| Project Financing Credits | 126 631 | 89 224 | 35 376 | 73 823 | 12 779 | 337 835 | |
| Corporate Credit lines | 25 000 | 38 500 | 2 000 | 2 500 | 23 000 | 91 000 | |
| Commercial paper | 23 500 | 16 355 | 39 855 | ||||
| Interets payable | 17 459 | 10 299 | 7 621 | 5 059 | 4 104 | 3 047 | 47 588 |
| IRS - cash flow hedge | 150 | 150 | 150 | 150 | 12 | 612 | |
| TOTAL AMOUNT OF DEBTS | 192 740 | 238 173 | 45 148 | 131 532 | 39 895 | 144 402 | 791 889 |
* The amount on the balance sheet, EUR 274 515 thousand, includes emission costs.
To hedge its variable interest rate exposure, the company uses variable type of financial instruments. In April 2020, the company entered into an agreement to cap the interest rate at 0,5% for about 75% of the exposure on the variable part of the debt (based on the internal view, i.e. before application of IFRS 11) up to July 1st, 2023. In December 2020, Immobel has entered in a new contract to hedge a variable interest loan. The Company uses interest rate swap agreements to convert a portion of its interest rate exposure from floating rates to fixed rates to reduce the risk of an increase of the EURIBOR interest rate. The notional amount amounts to EUR 30 million. The interest swap replaces the Euribor rate with a fixed interest rate per year on the outstanding amount. The derivative is formally designated and qualifies as a cash flow hedge and are recorded at fair value in the consolidated balance sheets in other assets and/or other liabilities. The interest rate swap and debt have same terms.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||
| Interest rate swaps | 291 | |
| DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | ||
| Interest rate swaps - cash flow hedges | 560 | |
| TOTAL | 560 | 291 |
| CHANGE IN FAIR VALUE OF THE DERIVATIVE FINANCIAL INSTRUMENTS | ||
| SITUATION AT 1 JANUARY | 291 | 536 |
| Changes during the period in the consolidated result | - 291 | - 245 |
| Changes during the period in other comprehensive income | 560 | |
| SITUATION AT 31 DECEMBER | 560 | 291 |
The increase in interest rate would result in an annual increase of the interest charge on debt of EUR 1.549 thousand per 1%-increase for about 25% of the variable part of the debt and maximum EUR 2.323 thousand in total for about 75% of the variable part of the debt to the extent the applicable EURIBOR-rate stands at 0%. Given that current applicable EURIBOR-rates are below 0% the impact of such increase would be even lower than these respective amounts.
The following table list the different classes of financial assets and liabilities with their carrying amounts in the balance sheet and their respective fair value and analysed by their measurement category.
The fair value of financial instruments is determined as follows:
The fair value measurement of financial assets and financial liabilities can be characterized in one of the following ways:
| Amounts recognized in accordance with IFRS 9 | ||||||
|---|---|---|---|---|---|---|
| Level of the fair value |
Carrying amount 31/12/2020 |
Amortized cost | Fair value trough profit or loss |
Fair value 31/12/2020 |
Cash flow hedging 31/12/2020 |
|
| ASSETS | ||||||
| Cash and cash equivalents | Level 1 | 148 059 | 148 059 | 148 059 | ||
| Other non-current financial assets | Level 1 | 175 | 175 | 175 | ||
| Other non-current assets | Level 2 | 1 689 | 1 689 | 1 689 | ||
| Trade receivables | Level 2 | 33 168 | 33 168 | 33 168 | ||
| Contract assets | Level 2 | 57 251 | 57 251 | 57 251 | ||
| Other operating receivables | Level 2 | 137 762 | 137 762 | 137 762 | ||
| Other current financial assets | Level 1 | 49 | 49 | 49 | ||
| TOTAL | 378 154 | 377 929 | 225 | 378 154 |
| TOTAL | 896 629 | 896 069 | 896 069 | 560 | |
|---|---|---|---|---|---|
| Derivative financial instruments | Level 2 | 560 | 560 | ||
| Other operating payables | Level 2 | 79 298 | 79 298 | 79 298 | |
| Contract liabilities | Level 2 | 3 896 | 3 896 | 3 896 | |
| Trade payables | Level 2 | 60 927 | 60 927 | 60 927 | |
| Interest-bearing debt | Level 1 & 2 | 751 949 | 751 949 | 751 949 |
The bank accounts are held by banks with 'investment grade' rating (Baa3/BBB- or better).
The Company starts only new projects in case of appropriate financing by corporate, specific financing or pre-sale. Therefore, the cash risk related to the progress of a project is very limited.
The Group is subject, for bonds and credit lines mentioned hereabove, to a number of financial commitments.
These commitments are taking into account the equity, the net financial debt and its relation with the equity and the
inventories. At 31 December 2020, as for the previous years, the Group was in conformity with all these financial commitments.
The Group has a limited hedge on the foreign exchange rates risks on its development activities. The functional currency of the offices activity currently developed in Poland is translated from PLN to EUR (except for Central Point managed in EUR), with an impact on the other comprehensive income.
| 2020 | 2019 | |
|---|---|---|
| Number of shares at 31 December | 9 997 356 | 9 997 356 |
| Number of shares fully paid at 31 December | 9 997 356 | 9 997 356 |
| Treasury shares at 31 December | 392 527 | 1 212 179 |
| Nominal value per share | 9,740 | 9,740 |
| Number of shares at 1 January | 9 997 356 | 9 997 356 |
| Number of treasury shares at 1 January | -1 212 179 | -1 220 190 |
| Treasury shares granted to a member of the executive committee | ||
| Treasury shares sold | 819 652 | 8 011 |
| Number of shares (excluding treasury shares) at 31 December | 9 604 829 | 8 785 177 |
IMMOBEL is optimising the structure of its permanent capital through a balance between capital and long-term debts.
The target is to maximise the value for the shareholders while maintaining the required flexibility to achieve the development projects. Other elements, like the expected return on each project and the respect of a number of balance sheet ratios, influence the decision taking.
The pensions and similar obligations cover the obligations of the Company as far as the group insurance is concerned.
The amount recognised in the balance sheet represents the present value of obligations in terms of defined benefit pension plans less the fair value of plan assets.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| STATEMENT OF FINANCIAL POSITION | ||
| Present value of the defined benefit obligations | 1 963 | 1 674 |
| Fair value of plan assets at the end of the period | -1 360 | -1 041 |
| NET LIABILITY ARISING FROM DEFINED BENEFIT OBLIGATION | 603 | 633 |
| STATEMENT OF COMPREHENSIVE INCOME | ||
| Current service cost | -52 941 | - 50 |
| Past service cost or settlement | ||
| Interest cost on the defined benefit obligation | -8 343 | - 20 |
| Interest income on plan assets | 5 317 | 12 |
| Administration costs | -4 039 | - 3 |
| DEFINED BENEFIT COSTS RECOGNIZED IN PROFIT OR LOSS | - 238 | - 61 |
| Acturial (gains) / losses on defined benefit obligation arising from | ||
| - changes in financial assumptions | ||
| - return on plan assets (excluding interest income) | 32 | 65 |
| - experience adjustments | 170 | - 66 |
| REMEASUREMENTS OF NET DEFINED BENEFIT LIABILITY RECOGNISED IN OTHER COMPREHENSIVE INCOME |
202 | - 1 |
| DEFINED BENEFIT COSTS | - 36 | - 62 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| PRESENT VALUE OF THE OBLIGATIONS AS AT 1 JANUARY | 1 674 | 1 576 |
| Current service cost | 52 941 | 50 |
| Interest cost | 8 343 | 20 |
| Contributions from plan participants | 10 266 | 10 |
| Actuarial (gains) losses | -169 676 | 66 |
| Benefits paid | -8 246 | - 48 |
| Past service cost, settlement or business combination | 395 449 | |
| PRESENT VALUE OF THE OBLIGATIONS AS AT 31 DECEMBER | 1 963 | 1 674 |
| 1 042 5 317 |
959 |
|---|---|
| 12 | |
| 65 941 | 47 |
| 10 266 | 10 |
| -8 246 | - 48 |
| 31 876 | 65 |
| -4 039 | - 3 |
| 216 835 | |
| 1 360 | 1 042 |
| Discount rate | 0,30% |
|---|---|
| Future salary increases | 3,10% |
| Inflation rate | 1,71% |
| Mortality table | MR-3/FR-3 (BE) INSEE H/F 14-16 (FR) |
| Discount rate | -0,20% | 0,30% | 0,80% |
|---|---|---|---|
| Amount of the DBO | 2 086 | 1 963 | 1 850 |
The Belgian defined benefit pension plan and defined contribution pension plans with guaranteed return are funded through group insurance contracts. The plans are funded through employer and employee contributions. The underlying assets of the insurance contracts are primarily invested in bonds. The defined benefit plan is closed for new employees. The plan participants are entitled to a lump sum on retirement. Active members also receive a benefit on death-in-service.
The French retirement indemnity plan offers a lump sum on retirement as defined by the collective labor agreement of the real estate industry. The plan is unfunded and open to new employees.
The liabilities of the Belgian defined contribution plans with guaranteed return and French retirement indemnity plan are recognized for the first time, and this through a past service cost of - EUR 178 thousand.
| EMPLOYER CONTRIBUTIONS IN THE DEFINED CONTRIBUTION PLAN (DC) | 111 |
|---|---|
| -------------------------------------------------------------- | ----- |
The components of provisions are as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Provisions related to the sales | 1 217 | 332 |
| Other provisions | 897 | 3 550 |
| TOTAL PROVISIONS | 2 114 | 3 882 |
| Rela ted to sa les |
Other | 31/12/2020 | |
|---|---|---|---|
| PROVISIONS AS AT 1 JANUARY | 332 | 3 550 | 3 882 |
| Scope changes | 454 | -2 346 | -1 892 |
| Increase | 693 | 579 | 1 272 |
| Use/Reversal | - 262 | - 886 | -1 148 |
| CHANGE S FOR THE YEAR | 885 | -2 653 | -1 768 |
| PROVISIONS AS AT 31 DECEMBER | 1 217 | 897 | 2 114 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 134 | 2 319 |
| Luxembourg | 500 | 542 |
| France | 1 480 | 1 021 |
| TOTAL PROVISIONS | 2 114 | 3 882 |
These provisions made correspond to the best estimate of outgoing resources considered as likely by the Board of Directors. The Group has no indication on the final amount of disbursement or the timing of the disbursement, it depends on court decisions.
The provisions are made up based on the risks related to the sales and to the litigations, in particular when the recognition conditions of those liabilities are met.
The provisions related to the sales mainly consist of rental guarantees, good end of execution...
No provision has been recorded for the other litigations that mainly concern:
This account is allocated by operational segment as follows:
| 31/12/2020 | 31/12/2019 |
|---|---|
| 29 181 | 25 207 |
| 6 449 | 2 518 |
| 9 764 | 29 585 |
| 4 295 | 990 |
| 7 190 | 1 262 |
| 4 048 | 2 |
| 60 927 | 59 564 |
The contract liabilities, arising from the application of IFRS 15, relate to following operational segment:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Belgium | 2 362 | 5 690 |
| France | 1 534 | |
| TOTAL CONTRACT LIABILITIES | 3 896 | 5 690 |
Contract liabilities include amounts received by the entity as compensation for goods or services that have not yet been provided to the customer. The contract liabilities are settled by the recognition of the turnover.
Current contract liabilities include income still to be recognized of EUR 3 896 thousand at 31 December 2020. 100% of the contract liabilities per 31 December 2019 were recognized as revenue in 2020.
All amounts reflected in contract liabilities are related to residential activities for which revenue is recognized as a percentage of progress, thus creating discrepancies between payments and the realization of benefits.
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Payroll related liabilities | 3 578 | 1 655 |
| Taxes (other than income taxes) and VAT payable | 16 240 | 22 179 |
| Advances on sales | 2 181 | 25 481 |
| Advances from joint ventures and associates | 28 544 | 18 416 |
| Accrued charges and deferred income | 3 305 | 2 155 |
| Operating grants | ||
| Acquisition price payable | 2 038 | 2 038 |
| Other | 16 302 | 7 196 |
| TOTAL OTHER CURRENT LIABILITIES | 72 188 | 79 120 |
Other current liabilities mainly consist of taxes (other than income taxes), the non-eliminated balance of advances received from joint ventures and associates, as well as advances received from customers under commercial contracts for which revenue recognition is expected at a specific point in time.
| 31/12/2020 | 31/12/2019 |
|---|---|
| 198 192 | 160 304 |
| 198 192 | 160 304 |
| 15 518 | 27 305 |
| 162 683 | 109 684 |
| 23 315 | |
| 198 192 | 160 304 |
| 810 140 | 463 941 |
| 758 676 | 590 941 |
| 758 676 | 590 941 |
| 289 028 | 227 433 |
| 179 662 | 195 590 |
| 468 690 | 423 023 |
| 19 991 |
The change in working capital by nature is established as follows:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Inventories, including acquisition and sales of entities and investment property that are not considered as | ||
| investing activities | -122 815 | -134 070 |
| Other current assets | 35 796 | -45 015 |
| Other current liabilities | -7 363 | -31 480 |
| CHANGE IN WORKING CAPITAL | -94 382 | -210 565 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| A3 Capital NV & A3 Management BVBA | 58,94% | 58,82% |
| IMMOBEL (Treasury shares) | 2,90% | 12,12% |
| Number of representative capital shares | 9 997 356 | 9 997 356 |
These are the remuneration of members of the Executive Committee and of the Board of Directors.
| Executive Chairman/ CEO | Executive Committee |
|
|---|---|---|
| Basic remuneration | 640 000 | 2 056 263 |
| Variable remuneration STI | waived | 172 000 |
| Variable remuneration LTI | 139 332 | 198 220 |
| Individual pension commitment | None | None |
| Other | None | 58 125 |
The relationships with joint ventures and associates consist mainly of loans or advances, whose amounts are recorded in the balance sheet in the following accounts:
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Investments in joint ventures and associates - shareholder's loans | 76 644 | 9 492 |
| Other current assets | 20 399 | 77 743 |
| Other current liabilities | 28 544 | 18 416 |
| Interest income | 4 630 | 2 982 |
| Interest expense | 1 287 | 636 |
Those relationships are conducted in accordance with formal terms and conditions agreed with the Group and its partner. The interest rate applicable to these loans and advances is Euribor + margin, defined based on internal transfer pricing principles.
See note 17 for further information on joint ventures and associates.
On 5th January 2021 Immobel SA/NV sold 262,179 treasury shares, representing c. 2.6% of Immobel current outstanding share capital, through a private placement, to qualified institutional investors.
Companies forming part of the Group as at 31 December 2020: SUBSIDIARIES – FULLY CONSOLIDATED
| GROUP INTEREST (%) (Economic |
|||
|---|---|---|---|
| NAME ARGENT RESIDENTIAL NV |
COMPANY NUMBER | HEAD OFFICE | interest) |
| BEIESTACK HOLDING SARL | 837 845 319 | Brussels | 100 |
| BEIESTACK S.A. | B 247.602 | Luxemburg | 100 |
| BEYAERT NV | B 183 641 | Luxemburg | 100 |
| BOITEUX RESIDENTIAL NV | 837 807 014 | Brussels | 100 |
| BRUSSELS EAST REAL ESTATE SA | 837 797 314 | Brussels | 100 |
| BULL'S EYE PROPERTY LUX SA | 478 120 522 | Brussels | 100 |
| CANAL DEVELOPEMENT SARL | B 138 135 | Luxemburg | 100 |
| CHAMBON NV | B 250 642 | Luxemburg | 100 |
| CLUSTER CHAMBON NV | 837 807 509 | Brussels | 100 |
| COMPAGNIE IMMOBILIÈRE DE PARTICIPATIONS FINANCIÈRES (CIPAF) SA | 843 656 906 | Brussels | 100 |
| 454 107 082 | Brussels | 100 | |
| COMPAGNIE IMMOBILIÈRE DE WALLONIE (CIW) SA | 401 541 990 | Brussels | 100 |
| COMPAGNIE IMMOBILIÈRE LUXEMBOURGEOISE SA | B 29 696 | Luxemburg | 100 |
| EDEN TOWER FRANKFURT GMBH | B235375 | Frankfurt | 100 |
| EMPEREUR FROISSART NV | 871 449 879 | Brussels | 100 |
| ENTREPRISE ET GESTION IMMOBILIÈRES (EGIMO) SA | 403 360 741 | Brussels | 100 |
| ESPACE NIVELLES SA | 472 279 241 | Brussels | 100 |
| FLINT CONSTRUCT NV | 506 899 135 | Brussels | 65 |
| FLINT LAND NV | 506 823 614 | Brussels | 65 |
| FONCIÈRE JENNIFER SA | 464 582 884 | Brussels | 100 |
| FONCIÈRE MONTOYER SA | 826 862 642 | Brussels | 100 |
| GARDEN POINT SP. Z.O.O. | 0000 38 84 76 | Warsaw | 100 |
| GRANARIA DEVELOPMENT GDANSK BIS SP. Z.O.O. | 0000 48 02 78 | Warsaw | 90 |
| GRANARIA DEVELOPMENT GDANSK SP. Z.O.O. | 0000 51 06 69 | Warsaw | 90 |
| HERMES BROWN II NV | 890 572 539 | Brussels | 100 |
| HOTEL GRANARIA DEVELOPMENT SP. Z.O.O. | 0000 51 06 64 | Warsaw | 90 |
| ILOT SAINT ROCH SA | 675 860 861 | Brussels | 100 |
| IMMO DEVAUX I NV | 694 904 337 | Brussels | 100 |
| IMMO DEVAUX II NV | 694 897 013 | Brussels | 100 |
| IMMOBEL FRANCE GESTION SARL | 809 724 974 | Paris | 100 |
| IMMOBEL FRANCE SAS | 800 676 850 | Paris | 100 |
| IMMOBEL FRANCE TERTIAIRE SAS | 833 654 221 | Paris | 100 |
| IMMOBEL GERMANY GMBH | 5050 817 557 | Köln | 100 |
| IMMOBEL GERMANY SARL | B231 412 | Luxemburg | 100 |
| IMMOBEL GP SARL | B 247 503 | Luxemburg | 100 |
| IMMOBEL GUTENBERG BERLIN INVESTMENT GMBH | HRB 90319 | Dusseldorf | 100 |
| IMMOBEL HOLDCO SPAIN S.L. | B 881 229 62 | Madrid | 100 |
| IMMOBEL HOLDING LUXEMBOURG SARL | B 138 090 | Luxemburg | 100 |
| IMMOBEL LUX SA | B 130 313 | Luxemburg | 100 |
| IMMOBEL PM SPAIN S.L. | B 882 567 06 | Madrid | 100 |
| IMMOBEL POLAND SP. Z.O.O. | 0000 37 22 17 | Warsaw | 100 |
|---|---|---|---|
| IMMOBEL PROJECT MANAGEMENT SA | 475 729 174 | Brussels | 100 |
| IMMOBEL R.E.M. FUND SARL | B 228 335 | Luxemburg | 100 |
| IMMOBEL REAL ESTATE FUND SC | B 228 393 | Luxemburg | 100 |
| IMMOBEL URBAN LIVING | 695 672 419 | Brussels | 100 |
| IMMO-PUYHOEK SA | 847 201 958 | Brussels | 100 |
| IMZ NV | 444 236 838 | Brussels | 100 |
| INDUSTRIE 52 BV | 759 472 584 | Brussels | 100 |
| INFINITO S.A. | 403 062 219 | Brussels | 100 |
| INFINITY LIVING SA | B 211 415 | Luxemburg | 100 |
| LAKE FRONT SA | 562 818 447 | Brussels | 100 |
| LEBEAU DEVELOPMENT | 711 809 556 | Brussels | 100 |
| LEBEAU SABLON SA | 551 947 123 | Brussels | 100 |
| LES JARDINS DU NORD SA | 444 857 737 | Brussels | 96,2 |
| LOTINVEST DEVELOPMENT SA | 417 100 196 | Brussels | 100 |
| MICHAEL OSTLUND PROPERTY SA | 436 089 927 | Brussels | 100 |
| MILAWEY INVESTMENTS SP. ZO.O. | 0000 63 51 51 | Warsaw | 100 |
| MÖBIUS CONSTRUCT SA | 681 630 183 | Brussels | 100 |
| MONTAGNE RESIDENTIAL SA | 837 806 420 | Brussels | 100 |
| NENNIG DEVELOPPEMENT SARL | B 250.824 | Luxemburg | 100 |
| NP EXPANSION | 829 708 981 | Paris | 100 |
| NP EXPANSION RIVE GAUCHE | 829 683 093 | Paris | 100 |
| NP SHOWROOM SNC | 837 908 086 | Paris | 100 |
| OKRAGLAK DEVELOPMENT SP. Z.O.O. | 0000 26 74 81 | Warsaw | 100 |
| PERCIPI NV | 478 273 940 | Brussels | 100 |
| POLVERMILLEN SARL | B 207 813 | Luxemburg | 100 |
| PORCELYNEGOED NV | 429 538 269 | Brussels | 100 |
| PRINCE ROYAL CONSTRUCT SA | 633 872 927 | Brussels | 100 |
| QUOMAGO SA | 425 480 206 | Brussels | 100 |
| RIGOLETTO SA | 536 987 545 | Brussels | 100 |
| SAS NP CROISSANCE | 817 733 249 | Paris | 100 |
| SAS NP DEVELOPPEMENT | 817 733 264 | Paris | 100 |
| SAS PARIS LANNELONGUE | 851 891 721 | Paris | 100 |
| SAS RUEIL COLMAR | 852 152 412 | Paris | 100 |
| SAS SAINT ANTOINE COUR BERARD | 851 891 721 | Paris | 100 |
| SCCV BUTTES CHAUMONT | 882 258 510 | Paris | 100 |
| SCCV IMMO BOUGIVAL 1 | 883460420 | Paris | 100 |
| SCCV IMMO MONTEVRAIN 1 | 884552308 | Paris | 100 |
| SCCV IMMO TREMBLAY 1 | 883461238 | Paris | 100 |
| SCCV NP ASNIERES SUR SEINE 1 | 813 388 188 | Paris | 100 |
| SCCV NP AUBERGENVILLE 1 | 837 935 857 | Paris | 100 |
| SCCV NP AULNAY SOUS BOIS 1 | 811 446 699 | Paris | 100 |
| SCCV NP BEZONS 1 | 820 345 718 | Paris | 100 |
| SCCV NP BEZONS 2 | 829 707 348 | Paris | 100 |
| SCCV NP BOIS D'ARCY 1 | 829 739 515 | Paris | 100 |
| SCCV NP BONDOUFLE 1 | 815 057 435 | Paris | 100 |
| SCCV NP BUSSY SAINT GEORGES 1 | 812 264 448 | Paris | 100 |
| SCCV NP CHATENAY-MALABRY 1 | 837 914 126 | Paris | 100 |
| SCCV NP CHELLES 1 | 824 117 196 | Paris | 100 |
| SCCV NP CHILLY-MAZARIN 1 | 838 112 332 | Paris | 100 |
|---|---|---|---|
| SCCV NP CROISSY SUR SEINE 1 | 817 842 487 | Paris | 100 |
| SCCV NP CROISSY SUR SEINE 2 | 822 760 732 | Paris | 100 |
| SCCV NP CROISSY SUR SEINE 3 | 822 760 625 | Paris | 100 |
| SCCV NP CROISSY SUR SEINE 4 | 832 311 047 | Paris | 46 |
| SCCV NP DOURDAN 1 | 820 366 227 | Paris | 100 |
| SCCV NP DRANCY 1 | 829 982 180 | Paris | 100 |
| SCCV NP EAUBONNE 1 | 850 406 562 | Paris | 100 |
| SCCV NP FONTENAY AUX ROSES 1 | 838 330 397 | Paris | 100 |
| SCCV NP FRANCONVILLE 1 | 828 852 038 | Paris | 90 |
| SCCV NP GARGENVILLE 1 | 837 914 456 | Paris | 100 |
| SCCV NP ISSY LES MOULINEAUX 1 | 820 102 770 | Paris | 85 |
| SCCV NP LA GARENNE-COLOMBES 1 | 842 234 064 | Paris | 100 |
| SCCV NP LE PLESSIS TREVISE 1 | 829 675 545 | Paris | 100 |
| SCCV NP LE VESINET 1 | 848 225 884 | Paris | 51 |
| SCCV NP LIVRY-GARGAN 1 | 844 512 632 | Paris | 100 |
| SCCV NP LONGPONT-SUR-ORGE 1 | 820 373 462 | Paris | 100 |
| SCCV NP LOUVECIENNES 1 | 827 572 173 | Paris | 100 |
| SCCV NP MEUDON 1 | 829 707 421 | Paris | 100 |
| SCCV NP MOISSY-CRAMAYEL 1 | |||
| SCCV NP MONTESSON 1 | 838 348 738 | Paris | 100 |
| SCCV NP MONTLHERY 1 | 851 834 119 | Paris | 51 |
| SCCV NP MONTLHERY 2 | 823 496 559 | Paris | 100 |
| SCCV NP MONTMAGNY 1 | 837 935 881 | Paris | 100 |
| SCCV NP NEUILLY SUR MARNE 1 | 838 080 091 | Paris | 100 |
| SCCV NP PARIS 1 | 819 611 013 | Paris | 100 |
| SCCV NP PARIS 2 | 829 707 157 | Paris | 100 |
| SCCV NP RAMBOUILLET 1 | 842 239 816 | Paris | 100 |
| SCCV NP ROMAINVILLE 1 | 833 416 365 | Paris | 100 |
| SCCV NP SAINT ARNOULT EN YVELINES 1 | 829 706 589 | Paris | 100 |
| SCCV NP SAINT GERMAIN EN LAYE 1 | 828 405 837 | Paris | 100 |
| SCCV NP SAINT GERMAIN EN LAYE 2 | 829 739 739 | Paris | 100 |
| SCCV NP VAUJOURS 1 | 844 464 768 | Paris | 100 |
| 829 678 960 | Paris | 100 | |
| SCCV NP VILLE D'AVRAY 1 | 829 743 087 | Paris | 100 |
| SCCV NP VILLEJUIF 1 | 829 674 134 | Paris | 100 |
| SCCV NP VILLEMOMBLE 1 | 847 809 068 | Paris | 100 |
| SCCV NP VILLEPINTE 1 | 810 518 530 | Paris | 100 |
| SCCV NP VILLIERS SUR MARNE 1 | 820 147 072 | Paris | 100 |
| SCCV SCI COMBS LES NOTES FLORALES | 820 955 888 | Paris | 60 |
| SCI LE COEUR DES REMPARTS DE SAINT-ARNOULT-EN-YVELINES | 831 266 820 | Paris | 100 |
| SNC IMMO MDB | 882328339 | Paris | 100 |
| T ZOUT CONSTRUCT SA | 656 754 831 | Brussels | 100 |
| THOMAS SA | B 33 819 | Luxemburg | 100 |
| VAARTKOM SA | 656 758 393 | Brussels | 100 |
| VAL D'OR CONSTRUCT SA | 656 752 257 | Brussels | 100 |
| VELDIMMO SA | 430 622 986 | Brussels | 100 |
| VESALIUS CONSTRUCT NV | 543 851 185 | Brussels | 100 |
| ZIELNA DEVELOPMENT SP. Z.O.O. | 0000 52 76 58 | Warsaw | 100 |
| JOINT VENTURES – ACCOUNTED FOR UNDER THE EQUITY METHOD |
|---|
| -------------------------------------------------------- |
| GROUP INTEREST (%) (Economic |
|||
|---|---|---|---|
| NAME | COMPANY NUMBER | HEAD OFFICE | interest) |
| BELLA VITA SA | 890 019 738 | Brussels | 50 |
| BORALINA INVESTMENTS SL | B 884 669 33 | Madrid | 50 |
| BROUCKERE TOWER INVEST NV | 874 491 622 | Brussels | 50 |
| CBD INTERNATIONAL Sp. z.o.o. | 0000 22 82 37 | Warsaw | 50 |
| CHÂTEAU DE BEGGEN SA | B 133 856 | Luxemburg | 50 |
| CITYZEN HOLDING SA | 721 884 985 | Brussels | 50 |
| CITYZEN HOTEL SA | 721 520 444 | Brussels | 50 |
| CITYZEN OFFICE SA | 721 520 840 | Brussels | 50 |
| CITYZEN RESIDENCE SA | 721 520 642 | Brussels | 50 |
| CP DEVELOPMENT Sp. z o.o. | 0000 63 51 51 | Warsaw | 50 |
| CSM DEVELOPMENT NV | 692 645 524 | Brussels | 50 |
| CSM PROPERTIES NV | 692 645 425 | Brussels | 50 |
| DEBROUCKERE DEVELOPMENT SA | 700 731 661 | Brussels | 50 |
| DEBROUCKERE LAND NV | 662 473 277 | Brussels | 50 |
| DEBROUCKERE LEISURE NV | 750 734 567 | Brussels | 50 |
| DEBROUCKERE OFFICE NV | 750 735 557 | Brussels | 50 |
| GATEWAY SA | 501 968 664 | Brussels | 50 |
| GOODWAYS SA | 405 773 467 | Brussels | 50 |
| ILOT ECLUSE SA | 441 544 592 | Gilly | 50 |
| IMMO PA 33 1 SA | 845 710 336 | Brussels | 50 |
| IMMO PA 44 1 SA | 845 708 257 | Brussels | 50 |
| IMMO PA 44 2 SA | 845 709 049 | Brussels | 50 |
| KEY WEST DEVELOPMENT SA | 738 738 439 | Brussels | 50 |
| LES 2 PRINCES DEVELOPMENT SA | 849 400 294 | Brussels | 50 |
| LIVINGSTONE RETAIL SARL | B 250 233 | Luxemburg | 33,33 |
| M1 SA | B 197 932 | Strassen | 33,33 |
| M7 SA | B 197 934 | Strassen | 33,33 |
| MÖBIUS II SA | 662 474 069 | Brussels | 50 |
| ODD CONSTRUCT SA | 682 966 706 | Knokke-Heist | 50 |
| PLATEAU D'ERPENT | 696 967 368 | Namur | 50 |
| RAC 3 SA | 819 588 830 | Antwerp | 40 |
| RAC 4 DEVELOPMENT SA | 673 640 551 | Brussels | 40 |
| RAC 4 SA | 819 593 481 | Brussels | 40 |
| RAC5 SA | 665 775 534 | Antwerp | 40 |
| RAC6 SA | 738 392 110 | Brussels | 40 |
| SCCV NP AUBER RE | 813 595 956 | Paris | 50,1 |
| SCCV NP AUBER VICTOR HUGO | 833 883 762 | Paris | 50,12 |
| SCCV NP AUBERVILLIERS 1 | 824 416 002 | Paris | 50,1 |
| SCCV NP BESSANCOURT 1 | 808 351 969 | Paris | 50,1 |
| SCCV NP BESSANCOURT 2 | 843 586 397 | Paris | 50,1 |
| SCCV NP CHARENTON LE PONT 1 | 833 414 675 | Paris | 50,98 |
| SCCV NP CRETEIL 1 | 824 393 300 | Paris | 50,1 |
| SCCV NP EPINAY SUR ORGE 1 | 838 577 419 | Paris | 50,1 |
|---|---|---|---|
| SCCV NP VAIRES SUR MARNE 1 | 813 440 864 | Paris | 50,1 |
| SCCV PA VILLA COLOMBA | 838 112 449 | Paris | 51 |
| SCHOETTERMARIAL SARL | B 245 380 | Luxemburg | 50 |
| SURF CLUB HOSPITALITY GROUP SL | B 935 517 86 | Madrid | 50 |
| SURF CLUB MARBELLA BEACH SL | B 875 448 21 | Madrid | 50 |
| UNIPARK SA | 686 566 889 | Brussels | 50 |
| UNIVERSALIS PARK 2 SA | 665 921 529 | Brussels | 50 |
| UNIVERSALIS PARK 3 SA | 665 921 133 | Brussels | 50 |
| UNIVERSALIS PARK 3AB SA | 665 922 420 | Brussels | 50 |
| UNIVERSALIS PARK 3C SA | 665 921 430 | Brussels | 50 |
| NAME | COMPANY NUMBER | HEAD OFFICE | GROUP INTEREST (%) (Economic interest) |
|---|---|---|---|
| DHR CLOS DU CHÂTEAU SA | 895 524 784 | Brussels | 33,33 |
| URBAN LIVING BELGIUM HOLDING NV | 831 672 258 | Antwerp | 60 |
| URBAN LIVING BELGIUM NV | 831 672 258 | Antwerp | 30 |
Except the mentioned elements on note 17, there are no significant restrictions that limit the Group's ability to access assets and settle the liabilities of subsidiaries.
In case of financial debts towards credit institutions, the shareholder's loans reimbursements (reimbursement of cash to the mother company) are subordinated to the reimbursements towards credit institutions.
The undersigned persons state that, to the best of their knowledge:
On behalf of the Board of Directors:
Marnix Galle3 Chairman of the Board of Directors
3 Vaste vertegenwoordiger van de vennootschap A³ Management bvba
In the context of the statutory audit of the consolidated financial statements of Immobel NV/SA ("the company") and its subsidiaries (jointly "the group"), we hereby submit our statutory audit report. This report includes our report on the consolidated financial statements and the other legal and regulatory requirements. These parts should be considered as integral to the report.
We were appointed in our capacity as statutory auditor by the shareholders' meeting of 28 May 2020, in accordance with the proposal of the board of directors ("bestuursorgaan" / "organe d'administration") issued upon recommendation of the audit committee. Our mandate expires on the date of the shareholders' meeting deliberating on the annual accounts for the year ending 31 December 2020, in view of Article 41 of EU Regulation nr. 537/2014 that states that as from 17 June 2020, an audit mandate can no longer be prolonged for those audit mandates running 20 years or more at the date of entry into force of the regulation. Due to a lack of online archives dating back prior to 1997, we have not been able to determine exactly the first year of our appointment. We have performed the statutory audit of the consolidated financial statements of Immobel NV/SA for at least 24 consecutive periods.
We have audited the consolidated financial statements of the group, which comprise the consolidated statement of financial position as at 31 December 2020, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flow for the year then ended, as well as the summary of significant accounting policies and other explanatory notes. The consolidated statement of financial position shows total assets of 1 431 million EUR and the consolidated statement of comprehensive income shows a profit for the year then ended of 37 million EUR.
In our opinion, the consolidated financial statements give a true and fair view of the group's net equity and financial position as of 31 December 2020 and of its consolidated results and its consolidated cash flow for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium.
We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current financial year, but not yet approved at national level. Our responsibilities under those standards are further described in the "Responsibilities of the statutory auditor for the audit of the consolidated financial statements" section of our report. We have complied with all ethical requirements relevant to the statutory audit of consolidated financial statements in Belgium, including those regarding independence.
We have obtained from the board of directors and the company's officials the explanations and information necessary for performing our audit.
We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
assessing, when the revenue should be recognized on percentage of completion basis, the stage of completion of the project based on the proportion of contract costs incurred and the estimated costs to complete and the expected margin of the project.
We designed our audit procedures to be responsive to this key audit matter. Our audit procedures included:
The revenue from the sale of projects recognized in the period is disclosed in Note F.2 of the consolidated financial statements. The costs of the projects are disclosed in Note F.4.
Note E.16 of the financial report discloses the accounting policy for recognition of such amounts.
Recoverability of Projects under Development carrying value of inventories, including those in investments accounted for under the equity method
Changes in the group's assumptions may have a material impact on net realizable value and therefore in determining whether the value of the project should be written down (impaired).
• This is a key audit matter given the relative size of the inventory balance in the consolidated statement of financial position and the significant judgment involved in the estimates used to calculate the net realizable value and the timing of recognition of the capitalized incurred costs.
• assessed whether the carrying value is the lower of the expected net realizable value and cost. - Testing of the financial cost allocated to the development business and thereafter capitalized to individual projects.
The costs of the projects under development are disclosed in Note F.17 (for projects owned in investments accounted for under the equity method) and F.21 (Inventories) of the Consolidated Financial Statements.
Note E.12 discloses the accounting policy for recognition of such amounts.
The board of directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium and for such internal control as the board of directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the board of directors is responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the group or to cease operations, or has no other realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a statutory auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
During the performance of our audit, we comply with the legal, regulatory and normative framework as applicable to the audit of consolidated financial statements in Belgium. The scope of the audit does not comprise any assurance regarding the future viability of the company nor regarding the efficiency or effectiveness demonstrated by the board of directors in the way that the company's business has been conducted or will be conducted.
As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors;
conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our statutory auditor's report. However, future events or conditions may cause the group to cease to continue as a going concern;
We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and we communicate with them about all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the audit committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes any public disclosure about the matter.
The board of directors is responsible for the preparation and the content of the directors' report on the consolidated financial statements and other matters disclosed in the annual report on the consolidated financial statements.
As part of our mandate and in accordance with the Belgian standard complementary to the International Standards on Auditing (ISA) as applicable in Belgium, our responsibility is to verify, in all material respects, the director's report on the consolidated financial statements as well as to report on these matters.
In our opinion, after performing the specific procedures on the directors' report on the consolidated financial statements, this report is consistent with the consolidated financial statements for that same year and has been established in accordance with the requirements of article 3:32 of the Code of companies and associations.
In the context of our statutory audit of the consolidated financial statements we are also responsible to consider, in particular based on information that we became aware of during the audit, if the directors' report on the consolidated financial statements and other information disclosed in the annual report, i.e. :
is free of material misstatement, either by information that is incorrectly stated or otherwise misleading. In the context of the procedures performed, we are not aware of such material misstatement.
• This report is consistent with our additional report to the audit committee referred to in article 11 of Regulation (EU) No 537/2014.
Signed in Gent.
The statutory auditor
Deloitte Bedrijfsrevisoren/Réviseurs d'Entreprises CVBA/SCRL Represented by Kurt Dehoorne
The financial statements of the parent company, IMMOBEL SA, are presented below in a condensed form. In accordance with Belgian company law, the Directors' Report and Financial Statements of the parent company, IMMOBEL SA, together with the Statutory Auditor's Report, have been filed at the National Bank of Belgium.
They are available on request from: IMMOBEL SA Rue de la Régence 58 BE-1000 Brussels Belgium www.immobelgroup.com
The statutory auditor issued an unqualified report on the financial statements of IMMOBEL SA.
| ASSE TS | 31/12/2020 | 31/12/2019 |
|---|---|---|
| FIXED ASSE TS | 346 615 | 289 7 7 1 |
| Start-Up costs | 113 | 193 |
| Intangible fixed assets | 285 | 303 |
| Tangible fixed assets | 846 | 424 |
| Financial fixed assets | 345 371 | 288 851 |
| CURRENT ASSE TS | 592 886 | 512 887 |
| Amounts receivable after one year | 327 | 327 |
| Stocks and contracts in progress | 47 887 | 54 069 |
| Amounts receivable within one year | 491 618 | 364 208 |
| Treasury shares | 13 076 | 54 186 |
| Cash equivalents | 34 476 | 35 453 |
| Deferred charges and accrued income | 5 502 | 4 644 |
| TOTAL ASSE TS | 939 501 | 802 658 |
| LIABILITIE S | 31/12/2020 | 31/12/2019 |
|---|---|---|
| SHAREHOLDERS' EQUITY | 322 491 | 276 443 |
| Capital | 97 357 | 97 357 |
| Reserves | 107 076 | 107 076 |
| Accumulated profits | 118 058 | 72 010 |
| PROVISIONS AND DE FERRED TAXE S | 478 | 1 725 |
| Provisions for liabilities and charges | 478 | 1 725 |
| DEBTS | 616 532 | 524 490 |
| Amounts payable after one year | 380 006 | 300 332 |
| Amounts payable within one year | 231 710 | 220 579 |
| Accrued charges and deferred income | 4 816 | 3 579 |
| TOTAL LIABILITIE S | 939 501 | 802 658 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| Operating income | 20 162 | 37 136 |
| Operating charges | -15 993 | -21 669 |
| OPERATING RE SULT | 4 169 | 15 467 |
| Financial income | 87 727 | 10 956 |
| Financial charges | -15 528 | -11 096 |
| FINANCIAL RE SULT | 72 199 | - 140 |
| PROFIT OF THE FINANCIAL YEAR BE FORE TAXE S | 76 368 | 15 327 |
| Taxes | - 220 | |
| PROFIT OF THE FINANCIAL YEAR | 76 148 | 15 327 |
| PROFIT OF THE FINANCIAL YEAR TO BE APPROPRIATED | 76 148 | 15 327 |
| 31/12/2020 | 31/12/2019 | |
|---|---|---|
| PROFIT TO BE APPROPRIATED | 146 000 | 96 401 |
| Profit for the financial year available for appropriation | 76 148 | 15 327 |
| Profit carried forward | 69 852 | 81 074 |
| APPROPRIATION TO EQUITY | ||
| To other reserves | ||
| RE SULT TO BE CARRIED FORWARD | 118 058 | 72 010 |
| Profit to be carried forward | 118 058 | 72 010 |
| PROFIT AVAILABLE FOR DISTRIBUTION | 69 852 | 81 074 |
| Divididents | 27 609 | 23 369 |
| Other beneficiaries | 333 | 1 022 |
Tangible assets are recorded as assets net of accumulated depreciation, at either their cost price or contribution value (value at which they were brought into the business), including ancillary costs and non-deductible VAT. Depreciation is calculated by the straight-line method. The main depreciation rates are the following:
| - | Buildings | 3 % |
|---|---|---|
| - | Buildings improvements | 5 % |
| - | Office furniture and equipment | 10 % |
| - | Computer equipment | 33 % |
| - | Vehicles | 20 % |
Financial Fixed Assets are entered either at their purchase price, after taking into account any amounts still not paid up and any writeoffs made. They are written down if they suffer a capital loss or a justifiable long-term loss in value.
Amounts Receivable within one year and those receivable after one year are recorded at their nominal value. Write-downs are applied in case of permanent impairment or if the repayment value at the closing date is less than the book value.
Stocks are recorded at their purchase price or contribution value, including, in addition to the purchase price, the ancillary costs, duties and taxes relating to them. The infrastructure costs are recorded at their cost price. Realisation of stocks is recorded at the weighted average price. Work in progress is valued at cost price. Profits are, in principle, recorded on the basis of the percentage of completion of the work. Write-downs are applied as appropriate, according to the selling price or the market value.
The sales and the purchases of properties are recorded at the signature of the notarial act in so far as the eventual conditions precedents are lifted and a clause of deferred property transfer is foreseen in the compromise under private signature
Short term investments are recorded as assets at their purchase price (ancillary costs excluded) or contribution value. Their values are adjusted, provided that the depreciation is lasting.
Cash at bank and in hand are recorded at their nominal value. Values are adjusted if the estimated value at the end of the financial year is lower than the book value.
At the close of each financial year, the Board of Directors, acting with prudence, sincerity and in good faith, examines the provisions to be set aside to cover the major repairs or major maintenance and the risks arising from completion of orders placed or received, advances made, technical guarantees after sale or delivery and current litigations.
Amounts Payable are recorded at their nominal value.
Rue de la Régence, 58 - 1000 Brussels - Belgium RPM / RPR (Legal Entitites Register) - VAT BE 0405.966.675
Belgian registered joint stock company, constituted on 9 July 1863, authorised by the Royal Decree of 23 July 1863.
Indefinite
(Article 10 of the Articles of Association – excerpt)
In addition to the transparency declaration thresholds provided for in the Belgian legislation, the disclosure obligation provided for in this legislation is also applicable as soon as the number of voting rights held by a person acting alone or by persons acting in concert reaches, exceeds or falls below a threshold of 3% of the total existing voting rights. Any obligation imposed by the current legislation on holders of 5% (or any multiple of 5%) of the total existing voting securities is also applicable to the additional 3% thresholds.
www.immobelgroup.com
Publication of 2020 annual accounts: 4 March 2021 Annual General Meeting 2021: 15 April 2021 Publication of 2021 half-year results: 9 September 2021 Publication of 2021 annual accounts: 10 March 2022 Annual General Meeting 2022: 21 April 2022
BNP Paribas Fortis KBC Bank ING Belgique Banque Degroof Petercam Investor relations Karel Breda
+32 (0)2 422 53 50
Chief editor Lian Verhoeven +32 (0)2 422 53 38
ChrisCom - www.chriscom.be
Triptyque, Marc Detiffe, Olivier Anbergen
Immobel does its utmost to respect the legal prescriptions related to copyrights. It kindly invites any person whose rights may have been infringed to contact the Company.
This report is available in English, Dutch and French.
Immobel SA / NV Rue de la Régence 58 Regentschapsstraat – B-1000 Brussels www.immobelgroup.com
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