ADP_REGISTRATION_DOCUMENT_2017
FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2017
6.3.2 Fair value of investment property The fair value of investment property stood at €2,433 million as at 31 December 2017, compared to €2,349 million at 31 December 2016, representing a growth of around 3.6%. The rate of coverage of external appraisals for the valuation of buildings and land leased to third parties amounts to almost 99% of their value. These appraisals were managed by a group of independent property experts composed of the following firms: ◆ CBRE Valuation; ◆ Cushman & Wakefield Valuation & Advisory; ◆ Crédit Foncier Expertises. Real estate experts use for their valuation (i) confidential data communicated by the Group (such as lease reports) and (ii) appropriate hypotheses mainly related to the discount rate and capitalization rate, market leasing values and specific advantages for lessees. The valuation of land reserves was assessed internally. This is also the case for a few ground leases to third parties that had not yet been assessed; these are mainly located at the general aviation aerodromes. The valuation of buildings not used for Aéroports de Paris’ own requirements, including their right of way, amounted to €1,052 million, an increase of €22 million compared to 2016.
This increase is mainly due to new entries as the acquisition of four additional buildings in the Dôme property complex, the conversion of land reserves into development projects of the Paris-Charles de Gaulle hotel sector, and a business park on a parcel of Paris-Orly and to adjustment of market lease value in certain areas, combined with a better occupation rate. Overall, areas with more liquidity (standard products with high occupation rates and long committed terms) increased due to rate cuts. However, areas being restructured, or due to be restructured, are losing value as a result of upgrades, decreases in rents or the demolition of existing buildings. The fair value of leased land amounts to €1,219 million, an increase of 3.7%. This increase is mainly due to the further development of the logistics and business activity areas at Paris-Orly, as well as strong hotel development with six projects underway at the Paris-Charles de Gaulle and Paris-Orly airport platforms. The value of land reserves increased from €143 million to €162 million, due to the use of a valuation method which reflects better their availability period and the potential constraints attached to it and a different scope (land consumption for development projects, preemption of areas dedicated to aeronautical activities, partially offset by the return of land in reserve).
External valuations made appear the main immediate returns on investments properties presented below:
Rate of immediate return
As at 31 Dec. 2017
As at 31 Dec. 2016
(in millions of euros)
Buildings Offices Paris-Charles de Gaulle Cargo Paris-Charles de Gaulle Hangars Paris-Charles de Gaulle
404 272
332 358
6.5% - 9.0% 8.0% - 10.0% 9.0% - 13.0% 4.0% - 6.5% 10.0% - 20.0% 7.0% - 12.0% 7.0% - 13.0% 6.0% - 7.5% 6.0% - 8.0% 8.0% - 10.0% 4.0% - 6.5% 13.0% - 16.0% 6.0% - 9.0% 5.0% - 8.0%
90
86
Hotels/shops Paris-Orly and Charles de Gaulle
6
-
Hangars/freight Paris-Orly
129
117 27 110
Activity Paris-Orly and Charles de Gaulle
27
Paris-Le Bourget
124
TOTAL OF EXTERNAL RENTED BUILDINGS
1,052
1,030
Ground leases Offices Paris-Charles de Gaulle Cargo Paris-Charles de Gaulle Hangars Paris-Charles de Gaulle
95
86
339
322
115
115
Hotels/shops Paris-Orly and Charles de Gaulle
253
262
Hangars/freight Paris-Orly
58
55
Logistic/activity Paris-Orly and Charles de Gaulle
218 141
225
Paris-Le Bourget and AAG
111
TOTAL OF EXTERNAL GROUND LEASES
1,219
1,176
TOTAL OF LAND RESERVES
162
143
TOTAL OF INVESTMENT PROPERTY
2,433
2,349
6.3.3 Additional information The law promulgated on 20 April 2005 provides that, in the event of a partial or total closure of one of the aerodromes operated by Groupe ADP, a percentage of at least 70% of the difference existing between, firstly, the market value at that date of the buildings situated within the enclosure of that aerodrome that are no longer used for the airport public service and secondly, the value of those buildings on the date on which they were
allocated to the airport plus the associated costs. Their rehabilitation and the closure of airport facilities is paid to the State. In addition, rental income (excluding rebilled charges) amounts to €184 million in 2017.
196
AÉROPORTS DE PARIS REGISTRATION DOCUMENT 2017
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