MRM - 2018 Registration document

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General information on the issuer and its capital Management report for the year ended 31 December 2018

1.3.2 Office portfolio Following the sale of Nova on 15 May 2018, M.R.M.’s office property portfolio as at 31 December 2018 had been reduced to Urban, an unoccupied 7,970m 2 building in Montreuil under an “as-is” sale agreement. This property is directly owned by the subsidiary SCI Noratlas. The Group’s legal structure can be found in Section 1 of the 2018 Registration Document. On 30 January 2019, M.R.M. announced the sale of the Urban office property, for the sum of €6.35 million excluding transfer taxes. See Section 1.4 “Subsequent events” of this report. 1.3.3 Change in the portfolio As of 31 December 2018, M.R.M.’s asset portfolio stood at €164.7 million excluding transfer taxes compared with €199.6 million excluding transfer taxes as of 31 December 2017, up 1.5% on a like-for-like basis, i.e. compared with its value as of 31 December 2017 restated for the properties sold in 2018, namely the Nova office building and a small retail property. M.R.M. invested €14.5 million in its portfolio in 2018. As of 31 December 2018, the change in the fair value of M.R.M.’s asset portfolio was a negative €12.1 million.

In 2018, within the context of its retail-property value- enhancement programme, the investments made in these portfolio assets amounted to €14.5 million. These were primarily: • the segmentation of a 1,800m 2 unit and the extension of the Aria Parc retail park in Allonnes which increased its total surface area from 10,500 to 12,800 m 2 to house a new low- end anchor brand on the site (Maison Dépôt in 3,300m 2 ); • the launch of the reconfiguration and extension of the Valentin shopping centre in Besançon, the largest project in M.R.M.’s investment plan. After the renovation of the existing shopping mall was carried out in 2017, a second 2,600m 2 rental space extension phase was launched in the second quarter of 2018, by way of the partial redevelopment of the shopping mall. The total surface area of the mall will be brought to 6,700m 2 comprising 45 stores and two medium-sized retail units. The car park will also get a makeover with the addition of an outdoor parking area. The Valentin shopping centre is due to open its doors to the public in its new configuration in early 2020. In 2018, the Group sold a small, local unoccupied retail property (500m 2 ), previously operated by Gamm Vert, for €0.2 million.

CAPEX 2018 €+14.5m

€199.6m

€164.7m

€-12.1m Change in fair value 2018

€-37.0m Nova

€-0.2m Retail

€-37.2m Disposals 2018

31/12/2017

31/12/2018

2018 was marked by declining trends in retail property asset valuations (excluding prime assets) reflecting the difficulties experienced by several brands whose activity is suffering from ongoing in-depth changes. The change in fair value stems mainly from the increase in the capitalisation rates, retained by the appraiser for certain assets, which more than offset the progress made in the retail-property value-enhancement plans during the year. At the end of December 2018, the nine retail complexes located in the Ile-de-France region and in

the provinces accounted for 97% of M.R.M.’s portfolio value, compared to 80% a year earlier. This asset allocation reflects the progress made by M.R.M. in refocusing on retail property following the sale of the Nova office building. As of 31 December 2018, the total surface area of M.R.M.’s property portfolio was 94,397m 2 , including 86,427m 2 in retail assets and 7,970m 2 in office assets, corresponding to the Urban building (1) in Montreuil.

(1) Property sold in January 2019. See Section 1.4 “Subsequent events” of this report.

M.R.M. 2018 REGISTRATION DOCUMENT

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