Renouncing international Gecina withdrew to Spain

Reset the counters is expensive: 183 million euros, in the case of Gecina. It was the price to pay to clean up its accounts 2009 Spanish acquisitions that former President Joaquin Rivero had made him realize and on which the judge Van Ruymbeke investigation. The participation of 49 in M'Bami, a land Office Madrid belonging to Joaquin Rivero and Bautista Soler (two shareholders of Gecina) had been paid 109 million last year and has estimated 26 million. The 63 million paid to the company Bamolo (to unknown shareholders) for land for Marbella (unbuildable) spend 16 million and the society of homes for Sanyres (in virtual) going from 44 million to... 0.

In addition, as all the land, Gecina suffered a dramatic depreciation (EUR 915 million) of the market value of its French real estate heritage. 10.55 Billion, it is nevertheless still the most important of the Hexagon, and it generated last year 647 million of rental income ( 1.6). In the end, provisions and depreciation have led to an annual net loss of 774 million.

Change of strategy

Remediated accounts, the new Director General of the land, Christophe Clamagéran, turns the page and announced a change of strategy. Renouncing international, Gecina withdrew to Spain. The Spanish assets (a head office in Madrid and M'Bami offices) will be consolidated in a subsidiary to 100, until the best days to sell. The focus is also in terms of the nature of assets. "Logistics real estate, representing EUR 574 million in our heritage, is assumed to follow its customers international, so we are going to abandon it, and hotel real estate," said Christophe Clamagéran. Assignments will be without haste, because not question of sacrifice. Will be retained as the axis of diversification as real estate of health, with the subsidiary Gecimed. For the rest, Gecina will focus on its two major poles: the offices, who will be his priority, and housing (EUR 4 billion of heritage, mainly in Paris in the 15earrondissement, and in the Paris region). Gecina will therefore be the only large land retaining its residential real estate. "Is a performance stable, less than in offices but insensitive to the crisis, which was 4 in Gecina, against an average of 3.75 sector because it is a high line Park," said Christophe Clamagéran. Will only be sold in the future the more obsolete housing and energy. Their number is not yet determined.

Commercial centre of Beaugrenelle, Paris project, unchoked: Gecina, who has only half of the shares in the investment of EUR 400 million, wants to take the majority to start the site.

Finally, the land attacked the problem haunting of its financing. The departure of Joaquin Rivero has released the negotiation with the banks of new financing to meet the deadline for repayment of 800 million euros in 2011. "Negotiations are advanced, we have an agreement of the banks on 500 million, and 300 million are under discussion," said Christophe Clamagéran. The decision to resort to financing bond, optionally convertible, is not supported. But the conditions are put in place. Rating agencies have been met, Standard & Poor's acknowledged the advances that represent the announcements yesterday and noted its credit BB note. It is always the "junk bond" category (rotten obligation) but the "investment" category, which would lower the cost of financing bond, is far. After years of setbacks, Gecina sees the end of the tunnel.