Cegereal has built a strategy predicated on owning high-quality office properties, occupied by first-class tenants and financed by a moderate level of debt, the objective being to achieve attractive performance over the long term.
Creating value is a core component of Cegereal’s business approach. The main sources of value creation in the property sector are also those that generate the greatest security:
- Optimal collection of indexed rents due to the high levels of tenant solvency.
- Low levels of financial leverage, opening the path to the optimum loan conditions and leaving a comfortable margin for sustainable cash flows growth after finance costs.
- High-quality, recently-built properties that require light capital expenditures. As an illustration, obtaining the “HQE” certification (BREEAM equivalent for existing buildings) which secures the property’s long-term value.
5 SOLID FUNDAMENTALS
High-quality property assets
The four office property complexes: Rives de Bercy, Arcs de Seine, Europlaza and Hanami collectively constitutes a unique office property portfolio in France.
Distinctive features include attractive districts, large, recently-built buildings and top quality services.
A Board of Directors, led by a nonexecutive and independent Chairman, active committees, General Management in touch with shareholders’ concerns, and a strict risk management policy: Cegereal’s governance operates within a framework of strict rules drawn up to preserve the interests of all the parties concerned.
A first-class financial and operational partner
Cegereal benefits every day from the expertise delivered by one of the world’s leading asset management companies: Northwood Investor. As the representative of Cegereal’s main shareholder and manager of its assets, Northwood Investor is a special partner, with an interest from two perspectives in the success of Cegereal.
A selective leasing management policy
Cegereal targets first-class tenants; major economic players keen to ensure that their office space is both effective and of high quality. This selective policy is one component of the company’s long-term approach to leasing.
A sound shareholder base
Cegereal is supported by long-term institutional shareholders committed to working with the company.