Extensa Group

AvH: 100%

(€ mio) 2014 2015
Leasinvest Real Estate (LRE)(1) 98.4 106.1
Tour & Taxis 52.8 240.0
Cloche d'Or 100.2 91.1
Other positions 59.8 58.2
Cash & Equivalent 11.5 38.3
Other assets 8.4 25.4
Total assets 331.3 559.1
     
Shareholders' equity (group share) 135.3 205.2
Minority interests 2.2  8.4
Financial debt 166.2 266.1
Other liabilities 27.6 79.4
Total liabilities 331.3 559.1

(1) Number of shares 1,173,866 (29.3%)

Key figures

Presentation

Management

Tour & Taxis - Herman Teirlinck (artist impression)

Pictures

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 2015 annual report

Financial overview 2014

The net result of Extensa Group for the 2015 financial year amounted to 54.6 million euros (3.4 million euros in 2014), of which 23.5 million euros is part of the remeasurement income of 42.1 million euros (which had to be recognized following the acquisition of full control over the Tour & Taxis site), which does not relate to the assets that were disposed of in the meantime or were valued mark-to-market in accordance with the ordinary accounting principles.

The Tour & Taxis site contributed to Extensa’s results through the rental of properties, the recognition of a partial result (according to percentage of completion) of the margin on the Meander project (renamed Herman Teirlinck building), and the sale of the Royal Warehouse. The Cloche d’Or project in Luxembourg contributed 9.8 million euros with the start up of the residential project and the sale of a land position to Auchan.

Primarily as a result of the full consolidation of Tour & Taxis since 2015, the balance sheet total increased from 331.3 million euros at year-end 2014 to 559.1 million euros at year-end 2015. The equity increased from 135.3 million euros at year-end 2014 to 205.2 million euros.

Operational overview 2015

Urban development projects

On January 19, 2015, Extensa Group acquired full ownership of the companies that control the Tour & Taxis site in Brussels through the acquisition of the 50% shares which were held by IRET and STAK REI since the establishment of the joint venture in 2001. For this acquisition, a bridge loan of 75 million euros was taken out. The acquisition of full control enabled Extensa to immediately start up several projects, and at the same time, inconsultation with the Brussels authorities, to determine the further layout of the 30 ha site. The procedure for drawing up a special zoning plan was initiated with a view to final approval in 2016.

Construction work on the Herman Teirlinck office building (gross 48,096 m²) began in April 2015 and will be completed in 2017. This highly energy-efficient building (four stars according to the Flemish manual) has been pre-let to the Flemish Community and will be the new Flemish Administrative Centre in Brussels. Participatiemaatschappij Vlaanderen (PMV) took a 49% stake in the project company as planned. The contribution of this project is recognized according to percentage of completion, the execution of which is scheduled from 2015 to 2017.

Extensa also started the construction of a first apartment building on the Tour & Taxis site. This project comprises 115 apartments, part of which will be transferred to the Property Management Agency of the city of Brussels in payment of urban planning charges. Provisional sale agreements were signed for the other 84 apartments.

This first building is part of a large residential zone that will be developed as a matter of priority. To this end, the consortium ‘AWG – Sergison Bates architects – noAarchitecten’ was selected in consultation with the Master Architect of the Brussels Region. This zone will be arranged along a new green avenue linking up with the park (10 ha), of which the first phase was opened in 2015. The programme for this zone comprises some 700 apartments, along with a residential care centre and a public car park (350 parking places). The new public car park under the forecourt (300 places) was also opened in 2015.

On December 17, 2015, Extensa sold all the shares of the company that owns the Royal Warehouse to Leasinvest Real Estate. Since this iconic building has for the past 10 years been virtually entirely let on a permanent basis to some 50 firms, entrusting it to a professional investment company makes sense. The public can now also invest in Tour & Taxis through Leasinvest Real Estate. The sale put the value of the Royal Warehouse at 108 million euros. The proceeds enabled Extensa to repay a substantial part of the 75 million euros bridge loan which it had taken out to acquire the 50% stake in Tour & Taxis.

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 major routes that structure the area are currently under construction by Luxembourg city.

Off-plan sales of apartments in the first phase (206 units) began in October 2014. By the end of 2015, 113 notarial deeds of sale had already been executed for those apartments. This allowed construction work to begin on this first phase, which is due for completion at the beginning of 2018. The off-plan sale of the second phase was launched in October 2015.

In the second quarter, a long-term lease was signed with Alter Domus for a 10,500 m² office building that has yet to be erected on the site. Planning permission is expected in the second quarter of 2016, and completion is scheduled for the end of 2018.

Planning permission for the new head office of Deloitte Luxembourg (30,000 m²) was granted in December 2015, and construction work began in the first quarter of 2016. Completion is also scheduled for 2018.

These projects will contribute to the results of 2016, 2017 and 2018 according to the ‘percentage of completion’ method.

At the end of 2015, final planning permission was received for the regional shopping centre project (75,000 m² + 25,000 m² residential). Consequently, the building lot could be transferred to the Auchan group, which will start the construction immediately.

Developments and residential projects in Belgium

In the inner-city project ‘De Munt’ in Roeselare (Extensa 50%), the fourth and last phase of the 145 apartments in total is being finished. A food retailer was attracted which will open in 2016, and this will help the shopping street take shape.

Various development projects are going through the administrative procedures for enforceable building permits. In Flanders, projects in Kontich, Edegem, Schilde, Wuustwezel, Kapellen, Bras-schaat and Leuven are under investigation. In Wallonia, the outcome for the projects in Wavre, La Hulpe and Tubize looks favourable.

Slovakia, Romania, Turkey

In Trnava, Slovakia, Top Development (Extensa 50%) consolidated its retail park (7,730 m²) by adding a petrol station. Further developments on the available building lots are under investigation.

In view of market conditions, no special progress was made in the development of the Romanian land positions. Various market opportunities in the property market in Istanbul were examined with a view to the realization of a new project in 2016.

Real estate investments

The Royal Warehouse on Tour & Taxis, the principal asset in this part of the portfolio, was sold at the end of 2015. An old office building (3,300 m²) in Evere was transferred to Citydev. At the beginning of 2016, four buildings with a total carrying value of 14 million euros are all that remains in the real estate lease portfolio.

Outlook 2016

The various office and residential projects will support the results of the coming years. In 2016, the results will keep pace with the progress of the construction works.

 

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Press releases

16/01/2015 Extensa acquires 100% of Tour&Taxis