NETHERLANDS - Unibail-Rodamco is almost ready to announce its top 50 management structure as its integration efforts are now on track, the €23.9bn property investor has said.

The new real estate group expects to present its first five-year plan at the end of November, while it is preparing to move its international headquarters to Amsterdam, it reported in its first half-year figures.

Based on consolidated balance sheets, and Unibail holding 79.6% of Rodamco Europe's shares, the group announced a net profit rise of 11.1% to over €1.4bn, compared to the first half of 2006.

"Business conditions remain positive, and the net rental like-for-like growth of 18% for offices and 9.8% for retail is excellent," the group stated. However, the corresponding figure for convention and exhibition centres was a negative return of 2.2%.

"After integrating the impact of the merger with Rodamco in the second half of 2007, the first half results allow the group to confirm its target growth rate of recurring earnings per share of over 15% for the full year," the merged company said.

Compared to the end of 2006, the group's net asset value per share rose by 13.6% to €159.7. This result is mainly attributable to revaluation and disposal results, as well as recurring net profit, Unibail-Rodamco pointed out.

The property investor also announced it has an agreement with the Paris Chamber of Commerce and Industry (CCIP) to merge their convention and exhibition activities with those of the group. The transaction - subject to approval of the authorities - is expected to take effect on January 1 2008, to "create a European market leader", it said.

The Unibail-Rodamco group has a pipeline of real estate covering 1.5m m2, of which 1.1m m2 is in retail centres and 0.4m m2 in offices. The projects encompass a 38% growth in gross lettable area in retail and office surface, it added.

Unibail-Rodamco currently owns over 95.7% of Rodamco's shares. The appraised value of the group's retail assets is €16.7bn. Offices and convention/exhibition centres account for €5.7bn and €1.4bn respectively.

Topics