Nexity's revenues from commercial division up by 61%

French construction and property group Nexity posted stable revenues of EUR 1.96 bn in the first nine months of the year, mostly driven by a 61% growth in its commercial property division, which reached EUR 370 mln so far this year. The increase in its commercial property activities compensated for a decline in revenues across its residential and distribution businesses, the company said on Friday. It added that the rise in its commercial business was also a result of a large backlog of orders from the past year.

'Commercial real estate has begun to show some signs of recovery,' said Alain Dinin, chairman and CEO of Nexity. He added: 'Investors show increased preference for constructions that meet the latest energy consumption and environmental quality standards, and end-users are interested in optimizing their total costs of occupation through efficient and economical buildings: Nexity is well positioned to take advantage of this trend.'

Revenues from the company's international activities also increased sharply, reaching EUR 66 mln in the first nine months of the year, up from EUR 26 mln a year before.

In the third quarter the company received a new EUR 100 mln order for the refurbishment of a high-rise building in Levallois, as well as a number of new orders for the development of logistic platforms and activity facilities.

Although the investment market remains weak, Nexity expects that the sector will continue to recover through the beginning of 2010, particularly in the case of well-located and let assets. Prime yields seem to have stabilized at around 5.75% to 6.50% in Paris' CBD with the return in the third quarter of foreign investors and in particular German funds to the French property market.