Corporate overview
IGD possesses a portfolio which is unique to the sector in which it operates. The market value is equally distributed between the different types of properties: if, on the one had, the hypermarkets generate a stable flow of revenues over time and the shopping centers in operation for more than three years offer attractive and sustainable returns, on the other hand the recently opened centers offer opportunities to improve revenues and margins as the operations reach completion and full capacity. Finally Winmarkt Magazine, with its 15 shopping centers and a building for office use, has average returns far above those of the Italian portfolio.
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Hypermarkets and supermarkets are the most stable component of the real estate assets in terms of cash flow generation and risk profile. This segment includes 18 properties*, 14 of which leased to Coop Adriatica, 3 to Unicoop Tirreno and 1 to Ipercoop Sicilia*, which have an occupancy rate of 100%.
The lease contracts are long-term and the rent is indexed to 75% of the ISTAT index. Tenants are responsible for all routine and extraordinary maintenance on plants and the interiors of the buildings.
At 30 June 2011 the gross average yield on a like-for-like basis for this type of asset was 6.30% on a market value, based on CBRE and REAG’s independent appraisal, of €503.70 million.
*On 12 July 2011 IGD acquires also the hypermarket located to Ipercoop Sicilia, inside La Torre Shopping Center in Palermo.
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The 19 shopping malls in Italy represent one of the most dynamic components of IGD’s real estate assets, with occupancy rates, on average, very high (97.03% at 30 June 2011).
At 30 June 2011 the gross average yield on a like-for-like basis in Italy reached 6.52% on a market value, based on CBRE and REAG’s independent appraisal, of €1,047.17 million.
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IGD invests in plots of land where it sees development opportunities or where it can expand on existing centers. To date IGD owns 3 plots of land subject to direct development,of which 1 for the construction of a new shopping center and the other 2 for extensions to existing centers. At 30 June 2011 they had an estimated market value of €34.75 million.
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» Romania
As of the end of April 2008 the properties of Winmarkt Magazin SA, the only retail network in Romania, became part of IGD’s portfolio. These include 15 shopping centers and an office building with a total market value at 30 June 2011 of €178.9 million. At the same date in June 2011, the malls had a gross average yield of 8.04% on their market value, equal to €174.7 million.
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IGD Group also consolidates, through Immobiliare Larice, 80% of the company Porta Medicea, the developer of the multi-functional project in Livorno. At 30 June 2011 its assets were valued at €95.8 million, net urban works charges. The real estate complex will be zoned for different uses; residential, services, hospitality and retail; IGD within the project will acquire the shopping center.
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With the purchase took place in April 2011 of a building complex in the center of Bologna in Via Rizzoli, the IGD Group's real estate portfolio has seen the introduction of a new type of assets, called "City Center".
The complex has 2,350 sqm of GLA on three floors, fully leased with a multi-year contracts to high-profile players (Apple and Melbooks).
The market value at 30 June 2011 in this category of properties amounted to €27.2 million with a return to regime of 5.51%.
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» Other
IGD also owns small properties pertaining to freehold shopping centers. At 30 June 2011 these properties had an estimated market value of €6.14 million.