MRM_REGISTRATION_DOCUMENT_2017

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Information on M.R.M.’s activities

Business overview

The plan proposes the implementation from 2018 for the first cities concerned of a framework contract at the municipal and intermunicipal levels and between public and private partners. It aims to facilitate procedures, especially access to financing for all project developers. The government has stressed the «customised» aspect of the plan. With regard to retail, among other measures the plan provides for: • Bringing sales and other taxes on physical and digital commerce into line; • Scrapping the retail permit (AEC) for anchor brands; • Providing human and financial resources to local authorities in order to promote the attractiveness of city centres; • Encouraging the use of digital technology by retailers; • Setting up the Coeur de Ville web portal catering to project developers; • Commissioning a study on medium-sized cities and vacancies in city centres. The plan goes beyond the recommendations made by professional bodies by allowing the suspension, on a case by case basis, of retail development projects that would destabilise the government’s territorial renewal plan (ORT). […] The office market in Île-de-France Source: CBRE study Q4 2017 “Market View – Paris Region Office”. The highest performing year since 2007 In the footsteps of a clearer economic situation with confidence in companies that has been gradually restored, the Ile-de-France market in 2017 reached a new peak since 2007, with a take-up of 2.6 million sqm (+8% compared to 2016, and +15% compared to the 2007-2016 average). The 0-5,000 sqmmarket, with nearly 1.5 million sqm, remained robust thanks to take-up in line with the good performance in 2016 (-3%) and 7% higher than the average between 2007 and 2016. The lack of available space in Paris, occupiers benefited to some instances to peripheral submarkets. This has compensated for the decreased volumes in this surface area segment in Paris. Transactions > 5,000 sqm have played a significant role in the excellent performance of the market in Ile-de-France: 88 signatures for over 1.1 million sqm, with 38 transactions in the Q4. Large occupiers have a higher have won visibility and tranquillity, enabling them to go forward and accelerate their An excellent 2017 driven by growth

decision and real estate projects. Most of them are focused on the search for new and redeveloped buildings. The good take-up performance of speculative constructions and the signature of important turnkey and owner-account contracts also boosted volumes in 2017. In Paris Centre West, the 0-5,000 sqm slowed down over the year (-9%) due to the lack of supply, which negatively impacted performance in the Centre (-29%). Take-up in Etoile rose (+6%), benefiting from occupiers transfers. There were more > 5,000 sqm transactions than ever, with 23 signatures (compared to an average of 9 over the past 10 years). Most of these were pre-let transactions, due to the lack of supply. For space > 5,000 sqm in the rest of Paris, the year was not as prosperous. However, the < 5,000 sqm performance was dynamic. La Défense had limited take-up after a record year in 2016. The rental market was particularly driven by 6 signatures > 5,000 sqm, despite the lack of high quality properties immediately available. The Western Crescent had a very good year, boosted by the dynamic of large transactions, with 23 moves (as opposed to 15 on average between 2007 and 2016), 6 of which were in Issy-les-Moulineaux and Nanterre. After several underperforming years, the Northern and Southern Inner Rim scored their highest performance of the last 5 years. The Eastern Inner Rim was negatively impacted by a limited property stock. A slight drop in vacant space In Ile-de-France, the vacant space decreased by 5% in 2017, to under 3.4 million sqm in the beginning of 2018, or a vacancy rate of 5.9%. With a lower proportion of the good quality supply (only 15%), occupiers preferred to position themselves prior to the actual delivery. They sometimes even positioned in the early upstream phase projects instead of the second-hand. To a certain extent, this limited the consumption of vacant space. The occupancy rate in Paris Centre West dropped to its lowest level in 10 years, 3%, with a supply of large surface areas that remained limited. In La Défense, good quality space is limited, with a 7.8% vacancy rate. This is also the case for the most established markets of the Western Crescent—Neuilly-Levallois, Boulogne- Issy and Nanterre. In the Northern and Southern Inner Rim, occupiers have a much larger selection, although the selection is more and more restricted for new / refurbished premises. The Inner Eastern Rim remains tight.

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M.R.M. 2017 REGISTRATION DOCUMENT