Presentation

Extensa Group

AvH: 100%

(€ million) 2017 2016
Leasinvest Real Estate (LRE) 0.0 104.3(1)
Tour & Taxis 215.4 359.8
Cloche d'Or 77.4 80.3
Other positions 48.5 58.3
Cash & Equivalent 28.4 32.9
Other assets 42.3 18.2
Total assets 412.0 653.8
     
Shareholders' equity (group share) 163.6 242.4
Minority interests 20.1 5.7
Financial debt(2) 129.8 293.0
Other liabilities 98.5 112.7
Total liabilities 412.0 653.8

(1) Number of shares 1,444,754 (29.3%); shares through AvH: 37,211
(2) Net financial debt: € 100.3 mio (2017), € 260.1 mio (2016), € 227.9 mio (2015)

Key figures

Management

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Extensa Group

Beneficial interest AvH: 100%
AvH Contact: Jan Suykens
www.extensa.be

Extensa is a real estate developer focused on residential and mixed projects in Belgium and the Grand Duchy of Luxembourg.

Information from the 2017 annual report

Financial overview 2017

Extensa Group equalled the good result of 2016 (30.4 million euros) with a net profit in 2017 of 29.9 million euros.

Tour & Taxis made a gross contribution of 16.8 million euros, generated by the rental and management of properties (such as the Sheds, Hôtel de la Poste, car parks, events), the sale of apartments in the Gloria residence, and the last contribution of the VAC De Meander project (Herman Teirlinck building), which was delivered to the tenant (Flemish Government) on a long-term lease and sold to Baloise Group.

In Luxembourg, Cloche d’Or made a gross contribution of 27.2 million euros from two office projects under construction and the sale of apartments.

The balance sheet total decreased from 653 million euros at year-end 2016 to 412 million euros at year-end 2017, primarily due to the disposal of the shares in VAC De Meander. The equity decreased from 242 million euros at year-end 2016 to 164 million euros. Extensa sold its 29.3% interest in Leasinvest Real Estate to AvH in 2017 and subsequently paid a dividend of 156.8 million euro, which explains the significant reduction in Extensa’s equity.

Operational overview 2017

Urban development projects

The special zoning plan for the entire Tour & Taxis site in Brussels was approved in June 2017, creating a clear legal framework for the further development of the site.

The Herman Teirlinck office building (48,096 m² gross) was delivered to the Flemish Government in August 2017. This energy-efficient building is fully operational as the new Flemish Administrative Centre in Brussels. In November 2017, Extensa finalized the sale of the project company to Baloise Group. The gross contribution is recognized according to percentage of completion of the building (2015-2017), and amounted to 10.9 million euros in 2017. Extensa used the proceeds of this sale to repay the outstanding balance of the bridge loan of 75 million euros which it had taken out at the beginning of 2015 to increase its stake in Tour & Taxis by 50%.

The 115 apartments of the Gloria residence, the first apartment building on the Tour & Taxis site, was completed in the first quarter of 2017. By the end of 2017, all but one (a show apartment) residential units were sold.

Planning permission for the rest of the residential quarter and for the ‘Gare Maritime’ is still pending and is expected in 2018.

The renovation of the existing structure of the ‘Gare Maritime’ has started and will be completed in the second quarter of 2018. This former freight station (40,000 m²) will be the new focal point of the Tour & Taxis site, and combines work space, thematic retail stores and a food court. Some of the surrounding buildings (the Quai, ‘Dangerous Products’) were also refurbished and will mainly be used for events. By the end of 2017, prospective tenants had signed letters of intent for approximately 40% of the office space of the ‘Gare Maritime’.

On the site at the Willebroekkaai, Extensa started work on the Riva project with 139 apartments overlooking the canal and the Royal Warehouse. Sufficient reservations had been signed by the end of 2017 to start construction work. Construction of the new Picard Bridge by Beliris will begin in the second quarter of 2018.

In the context of the Cloche d’Or project, Grossfeld PAP (Extensa 50%) has purchase options on very well located sites in the south of Luxembourg city. The construction of the two new boulevards by the city of Luxembourg and the Luxembourg state is on schedule. Parts of the new roads are already open to the public.

Off-plan sales of the apartments began in October 2014. By the end of 2017, 803 housing units were sold, which is above expectations. Construction work continues, and the margins are recognized according to percentage of completion. Construction work on the headquarters of Alter Domus (10,500 m²) and Deloitte Luxembourg (30,000 m²) is also on schedule. Completion is still scheduled for the third quarter of 2018. In December 2017, exclusive negotiations began with Ethias and Integrale on the sale of the Deloitte project.

 

Developments and residential projects in Belgium

Several new construction projects are going through the administrative procedures for enforceable building permits. In Flanders, the portfolio comprises projects in Edegem, Schilde, Wuustwezel, Kapellen, Brasschaat, Zoutleeuw, Roeselare and Leuven.

The Groeningen project in Kontich (650 houses and apartments) was approved by the local authority, but is now under appeal by third parties. In Wallonia, planning procedures for the projects in Wavre, La Hulpe and Tubize continue.

All apartments of the inner-city project ‘De Munt’ in Roeselare (Extensa 50%)have been completed, but have not all been sold yet.

 

Slovakia, Romania, Turkey

In Trnava, Slovakia, Top Development (Extensa 50%) continues to manage its retail park (7,730 m²) and is considering the sale of its energy network in 2018. Further sales or developments of the available sites are under investigation.

In December 2017, after years of litigation, Extensa became full owner of the land positions in Romania (which were previously held in a 50% joint venture), so that development can progress.

As regards the land position in the Topkapi neighbourhood (Zeytinburnu) in Istanbul, the development project (around 250 apartments) is being negotiated with the government. Planning permission is expected in 2018.

 

Real estate investments

At year-end 2017, apart from the heritage buildings on the Tour & Taxis site, four other buildings with a total carrying value of 11 million euros remained in the real estate portfolio. One of those other buildings will be sold in the first quarter of 2018. The others remain fully let.

 

Outlook 2018

The current projects on Tour & Taxis and Cloche d’Or will continue to support the results in 2018 and subsequent years.

 

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