GECINA - REFERENCE DOCUMENT 2017

04

ANNUAL FINANCIAL STATEMENTS Notes to the annual financial statements at December 31, 2017

€1 billion, whose subscription period was from July 21, 2017 to August 2, 2017 inclusive. On August 9, 2017 Gecina announced the success of its capital increase that gave way to the issue of 9,062,091 new shares, for a gross amount raised (issue premium included) of €1,001,361,055.50. At the end of the subscription that ended on August 2, 2017, the total demand reached approximately €2.7 billion, i.e. a subscription rate of approximately 267%. On August 29, 2017, Gecina acquired blocks of shares and of OSRA Eurosic, bearing on a total of 38,122,108 shares and 17,126,902 OSRA. At the end of that transaction, Gecina thus held 85.4% of the diluted capital of Eurosic. On October 17, 2017, at the end of the publication of the results of the alternative public offer for simplified purchase and exchange, Gecina reached a holding rate of 99.75%. This result made it possible to begin the final step in the acquisition of Eurosic with the mandatory squeeze-and delisting on October 24, 2017.

ACCOUNTING RULES AND PRINCIPLES 4.3.2 The annual financial statements are prepared in accordance with the French General Chart of Accounts and the French Commercial Code.

4.3.3

VALUATION METHODS

The method used for valuing items recorded in the financial statements is the historical cost method. Note that the balance sheet was subjected to a voluntary revaluation at January 1, 2003, after Gecina opted for the French listed real estate investment trust (SIIC) tax regime.

Fixed assets

4.3.3.1

Intangible assets 4.3.3.1.1 Intangible assets are measured at cost and amortized under the straight-line method according to the planned term of the asset.

Gross value of tangible fixed assets and depreciation 4.3.3.1.2 Gecina has been using a component approach since January 1, 2005. The table below gives the straight-line depreciation periods for each of the components:

Proportion of component

Depreciation period (in years)

Residential

Offices

Residential

Offices

Framework structure Roofing and walls Technical components Fixtures and fittings

60% 20% 15%

50% 20% 25%

80 40 25 15

60 30 20 10

5%

5%

The new assets are stated at cost made up of the purchase price and all direct costs including transfer duties, fees and commissions linked to the acquisition, or at cost for constructions.

In accordance with ANC regulation 2015-6, the technical merger losses for the unrealized capital gains recognized are recorded in the assets in question.

112 GECINA - REFERENCE DOCUMENT 2017

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