SIMI 2023: Covivio Foundation wins an award!

Last night, at the SIMI 2023, Covivio received the “Sponsorship & Community Solidarity” award in the “Societal Commitment” category. This award, which recognises the various solidarity initiatives undertaken by real estate companies, highlights the work carried out by the Covivio Foundation, which since 2020 has coordinated the company’s European sponsorship initiatives on the theme of equal opportunities, whether through financial, skills-based or in-kind sponsorship

Covivio wins the “Sponsorship & Community Solidarity” award  in the “Societal Commitment” category

Committing to greater equality of opportunity

Covivio established its Foundation in 2020, which, in line with its Purpose to “Build sustainable relationships and well-being”, responds to the company’s wish to play a more active role in urban life in order to help people live better together.

Through its Foundation, Covivio supports non-profits working to improve equal opportunities in France, Germany and Italy, through access to education and training, access to employment, access to housing, support for integration, social inclusion and the reintegration of vulnerable populations

The Foundation currently supports around twenty non-profits over periods ranging from one to three years through calls for projects to offer practical support and long-term guidance.

21 non-profits supported in 2023

Committed employees in Europe

Through its Foundation, Covivio also aims to encourage the commitment of its European employees by involving them as much as possible in joint projects or skills sponsorship workshops. To achieve this, Covivio has organised the annual Socovivio Week in France and Italy since 2022 to encourage team involvement. And the challenge has been met, with over 200 employees taking part in 2023, contributing a total of 900 hours of volunteering across ten non-profits and 26 missions.
Moreover, Covivio employees have eight working hours off each year during which they can take part in a solidarity initiative of their choosing.

In the future, the Covivio Foundation intends to continue to offer comprehensive support to its partner non-profit organisations, to link its action ever more closely to its business and portfolio through targeted initiatives, and finally, to make it even easier for its teams in Europe to participate

It is an honour to receive this award recognising the commitments and initiatives of the Covivio Foundation, which currently supports over 20 non-profits across Europe. This award also highlights the commitment of Covivio’s German, French and Italian employees who work closely alongside non-profits. It will inspire us to go even further and to continue our commitment to equal opportunities, a cause that Covivio holds dear.”

Alix d’Ocagne, Chairwoman of the Board of Covivio Foundation

ContaCt

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr

Investor Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr

Covivio successfully priced a €500 million 8.5-year Green Bond

Covivio successfully priced today a €500 million Green Bond, maturing in June 2032. Proving the bond investor’s appetite and their confidence in the Group’s credit profile, this issuance was close to 4 times oversubscribed.

The proceeds will be used to finance or refinance Eligible Green Portfolio as defined in the Sustainable Bond Framework, including the refinancing of outstanding Green Bonds.

The spread of the Bond issuance is 168 bps at 8.5 years for a coupon of 4.625%. The fixed rate of the issue will be largely swapped into floating rate, to take advantage of the Group’s strong hedging position (90% of debt hedged at end-2023; 5.8-year average hedging maturity). Pending the redemption of the Bond maturing in October 2024, Covivio will also benefit from very favourable cash investment conditions. This should enable to limit the impact on the average cost of debt, which is expected to remain below 2.5% by 2027 (based on current debt profile and market conditions).

This transaction further strengthens Covivio’s balance sheet by:

  • (i) extending the debt maturity (4.7 years at end-June 2023);
  • (ii) increasing the Group’s liquidity to €2.2 billion, covering debt expiries until end-2025;
  • (iii) increasing the proportion of debt linked to ESG objectives (55%);
  • (iv) maintaining a strong diversification of financing sources.

As a reminder, Standard & Poor’s confirmed in May 2023 Covivio’s rating at BBB+, stable outlook.

Application will be made for the notes to be admitted to trading on Euronext Paris. The definitive documentation relating to this bond issue will be available on the websites of the Autorité des Marchés Financiers and Covivio. Settlement and admission to trading on Euronext Paris of the notes should occur on 5 December 2023.

This press release and the information contained herein do not constitute an offer to sell or subscribe, nor a solicitation of an order to buy or subscribe the notes in any country, particularly in the United States. This press release and the information contained herein also do not constitute an offer to purchase nor a solicitation to sell the notes, nor an invitation to participate to the offer to purchase. distribution of this press release may be restricted in some countries and be subject to specific regulations and persons in possession of this press release should inform themselves about and comply with any applicable restrictions.

ContaCt

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr

Investor Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr

Stream Building wins the award “The Plan Award 2023”

Stream received last November 9th in Milan the award " The Plan Award 2023 " in the category " mixed-use " facing 33 international projects.

The award, which recognises excellence in the fields of architecture, interior design and town planning, is in recognition of this ambitious project by an unprecedented consortium: Covivio, Hines France and PCA-STREAM.

We are honoured to receive this international award, which highlights the relevance of Stream Building. A landmark in the 17th arrondissement of Paris, Stream Building embodies a mix of spaces, uses, openness to the neighbourhood, ongoing activity and sustainability. Bringing together all the urban functions under one roof, the building functions like an ecosystem, facilitating the flow between each space, and using the waste from the shops as compost for the vegetable garden on the roof, which in turn supplies the hotel’s restaurants. A truly virtuous and sustainable circle.  

Olivier Estève
Covivio’s Deputy CEO

In 2016, Stream Building encouraged us to be visionary and to innovate by looking at the future of the workplace. The economic climate and changing lifestyles have subsequently confirmed the relevance of our choices. Questioning the different functions of a building and its sustainable integration into the city enabled us to create a genuine platform for multi-use, flexible and modular living. It’s very satisfying to see this joint project rewarded in the mixed-use category, which is the very essence of this project.

Xavier Musseau
Chairman of Hines France

We are honoured to see Stream Building rewarded, a building whose innovations embody more than fifteen years of research and forward-looking thinking by the agency’s research laboratory, which tackles, through different disciplines and creative practices, the issues that underpin the architecture and urban planning of tomorrow. Stream Building can thus be seen as a manifesto of our research-action philosophy, which seeks to go beyond modern dualisms in order to design a sustainable, desirable and inclusive city.

Philippe Chiambaretta
Architect and Founder of PCA-STREAM

“The Plan Awards”, created in 2016 at the initiative of the architecture magazine “The Plan”, includes 20 different categories and brings together more than 500 participants at each edition. The jury is made up of international figures from the worlds of architecture, design, real estate and academia. 

Covivio was also nominated in other categories with two of its Milan projects: The Sign and Symbiosis (“Building D”).

Covivio and AccorInvest enter into exclusive negotiations with a view to consolidating their hotel properties and business assets

Covivio, a diversified European real estate operator, today announces that it has entered into exclusive negotiations with AccorInvest to consolidate their jointly held hotel properties and business assets.

An attractive exchange

Through its subsidiary Covivio Hotels[1], Covivio owns 54 hotels that are let to AccorInvest under long-term variable rent leases based on revenues. AccorInvest owns the business assets for these hotels and has signed long-term management contracts with the Accor Group.

The consolidation operation would take the form of an exchange of business assets, currently held by AccorInvest, for hotel premises owned by Covivio Hotels. Following this transaction, Covivio Hotels would own 24 hotel operating properties and AccorInvest would own 10. The agreed value of the properties transferred to AccorInvest represents around €210 million[2], while that of the business assets acquired by Covivio Hotels is around €260 million[3]. Based on 2022 figures, the assets transferred to AccorInvest represent annual rental income of €9 million, while the business assets acquired by Covivio generate EBITDA of €25 million.


A further step taken for joint-venture hotel real estate

Covivio Hotels is also joint shareholder and asset manager for a further 60 hotels let to AccorInvest and held via two joint ventures, established in 2010 and 2014 respectively: one is 80% held by Crédit Agricole Assurances and 20% by Covivio Hotels, while the other is held by la Caisse des Dépôts, Société Générale Assurances and Covivio Hotels. An exclusive agreement has also been signed with a view to consolidating the property and business assets of 25 of these hotels: 19 hotels for the joint ventures and six for AccorInvest.

These consolidation transactions for Covivio Hotels and the joint ventures represent a total of €390 million3 in hotel properties transferred, identical to the value of the business assets acquired, thus making the transaction cash neutral. Upon completion, Covivio Hotels and its partners will have consolidated ownership of 43 hotels and AccorInvest 16 hotels.

Hotels: a dynamic and resilient sector

This deal will take place in a context where the European hotel market has once again shown its ability to overcome crises, ensure long-term performance and adapt to new expectations.

Created in 2005, Covivio Hotels has constantly expanded its portfolio in terms of segments, operators and management methods. As such, the Group has developed expertise in operating property management (currently 23% of the portfolio) over a ten-year period through structuring acquisitions in several countries, including Germany, France and Belgium.

Through this transaction, Covivio Hotels intends to increase its capacity to directly influence portfolio performance by repositioning some hotels it has held for almost 20 years in order to leverage their considerable growth potential.

An operation intended to launch a new growth cycle for Covivio Hotels

The deal would therefore enable Covivio Hotels and its partners to acquire business assets in major tourist areas with considerable potential for value creation through repositioning and management optimisation. Some of these hotels would remain under the Accor brand (under management or franchise agreements), while others may be rebranded.

This accretive strategic move would mark a new step in Covivio’s development in the hotel sector towards a more diversified model (leased assets, operating properties). On a pro forma basis following this transaction, Covivio Hotels’ revenue structure would comprise 54% fixed revenues and 46% variable revenues (mainly EBITDA from operating properties, whereas the proportion of variable rents would drop to 7% from the current 20%).

The operation will shortly be submitted to the Covivio and AccorInvest Social and Economic Committees for the information and consultation process and is also subject to certain conditions precedent and the completion of the customary due diligence procedure. It is set to be completed during the second half of 2024.

This project to consolidate the business and property assets of high-potential hotels is a unique opportunity to accelerate the value-creating asset management of our hotel portfolio. By leveraging our real estate and hotel expertise, we aim to reposition some of these hotels to meet changing customer expectations and increase their profitability.

Tugdual Millet
CEO Hotels, Covivio

[1] 43.9% held and controlled by Covivio. Figures in this press release are presented on Covivio Hotels’ group share basis.
[2] Excluding transfer taxes
[3] Including transfer taxe

ContaCt

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr

Investor Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr

Discover the latest issue of our magazine Urban Designers

Urban Designers is Covivio's bi-annual magazine, and the latest issue has just been published.

In this new issue, we take a look at the design of offices, hotels and housing. How can design be used to reinvent the places where we live, play and work? How has this creative asset become indispensable today?

We also wanted to devote a report to the new-found colour of the hotel market, and to present our ambitious commitments and concrete actions in favour of the climate in our “Outlook” section.

You can also find the previous editions: 

A look back at the Cité Numérique experience tour

On 28 September, for the second year, the Cité Numérique opened its doors to the public with an event that gave local residents a chance to discover this unique ecosystem, and gave the more than 50 companies that are tenants of the Cité Numérique, an opportunity to showcase their expertise.

The Etablissement Public d’Aménagement Bordeaux Euratlantique, supported by Covivio, offered an afternoon and a musical aperitif, with free activities for families, time to visit the premises and stands dedicated to employment, guidance and training in digital professions.

IRO: 1st office building in France to receive “ActiveScore Platinium” certification

We are proud to announce that our IRO building in Châtillon is the 1st office building in France to obtain "ActiveScore Platinium" certification, with a score of 83/100.

ActiveScore certifies buildings that give pride of place to soft mobility, in particular through all the infrastructures and initiatives put in place.

At IRO, this means:

  • a secure indoor cycle park with 120 spaces and the addition of safety hoops for all spaces
  • additional signage on the ground
  • a dedicated electric recharging point
  • a changing room with two PEKO drying cabinets
  • the organisation of workshops dedicated to bicycle repairs.

An approach that is fully in line with our desire to offer ever more virtuous and efficient buildings, capable of meeting the climate challenge.

Activity at end-September 2023 – Stronger balance sheet and revenues up +7% like-for-like

Continued strong rental momentum across all businesses

  • In offices, portfolio leases keep up the pace: 90,600 m² let or renewed since the beginning of the year, contributing positively to the rebound in occupancy rate (+70 bps over 3 months to 93.8%)
  • In German Residential, Covivio continues to benefit from a favourable rental market, achieving an average reversion of around +20%, of which +28% in Berlin
  • Hotels: RevPAR up +15% in 2023 (vs. 2019)

Further balance sheet strengthening

€565 million (€718 million at 100%) in new disposal commitments, of which €214 million in Q3

€1.1 billion in financing signed since the start of the year, including €350 million in Q3

€1.7 billion available liquidity, up by €500 million since the start of the year, and covering debt expiries over the next 24 months

Like-for-like revenue growth of +7% at end-September 2023

  • Revenues (Group share) of €484.8 million, up +3.0% as reported and up +6.9% like-for-like
  • Offices: improvement in like-for-like growth to +5.4%
  • German Residential: sustained like-for-like growth at +3.8%
  • Hotels: +15.3% like-for-like revenue growth
  • Occupancy rate of 96.1% at end-September 2023 (vs 95.8% at end-June 2023)

ESG: Covivio once again awarded by the GRESB ranking

  • Overall score of 90/100, up 2 points over 1 year and “5-Star” status maintained, confirming the relevance and strength of the Group’s ESG policy

2023guidance confirmed

  • Recurring net income (Adjusted EPRA Earnings) 2023 guidance of around €420 million

[1] Revenue Per Available Room

ContaCt

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr

Investor Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr

2023 – 9M 2023 activity – Slideshow

Stream Building wins prestigious ULI Europe Awards for Excellence

Stream Building, located in Paris 17th arrondissement and winner of the “Réinventer Paris” call for projects, received the prestigious award from Urban Land Institute (ULI) association last night, beating six other competing projects. A quality award for the Stream Building project, the fruit of an unprecedented collaboration between Covivio, Hines and PCA-Stream.

This award, which recognises best practices and outstanding projects in terms of urban development, was presented at the C Change Summit, the unmissable event in Copenhagen for real estate players committed to tackling the challenges surrounding the climate transition.

We are greatly honoured to have received this award in recognition of the shared efforts of our teams and partners working on Stream Building. This iconic project marked by numerous urban planning challenges showcased our entire expertise in terms of project management, technicity and sustainable development. It is a remarkably successful project that demonstrates how well our products meet market demand. And with this ambition in mind, we will continue to provide working and living spaces increasingly tailored to the needs of cities, residents and businesses, in line with our commitment to make a positive social and environmental impact.

Olivier estève
Deputy CEO of Covivio

Xavier Musseau, President of Hines France, comments: “Back in 2016, Stream Building encouraged us to be visionary and to innovate by looking at the future of the workplace. The economic climate and changing lifestyles have subsequently confirmed the relevance of our choices. Questioning the different functions of a building and its sustainable integration into the city enabled us to create a genuine platform for multi-use, flexible and modular living. It’s very satisfying to see this joint project rewarded by an international benchmark in urban development.”

Philippe Chiambaretta, Architect and Founder of PCA-STREAM,added: “We are honoured to have received this award for Stream Building, a building whose innovations embody more than fifteen years of research and forward-looking thinking by the agency’s research laboratory, which uses different disciplines and creative practices to tackle the issues that will underpin the architecture and urban planning of tomorrow. Stream Building can thus be seen as a manifesto of our research-action philosophy, which seeks to go beyond modern dualisms to design a sustainable, desirable and inclusive city.”

Presented by a jury of reputed professionals, the award recognises the level of market acceptance of the programme and the excellence implemented throughout the project:

  • planning and assembly, urban planning, construction quality, economy and project management,
  • environmental sustainability and resilience,
  • architecture and design,
  • relevance and positive impact on local communities,
  • exemplary models, strategies and techniques that can be easily reproduced or adapted to other communities.

Stream Building stands out through its variety of programmes by offering different urban functions spanning an area of 16 200 m²:

9,600 m² of offices and services

1,100 m² of street front retail surfaces, including a restaurant

5,500 m² of hotel and long-stay residential space, including 700 m² of social space, and a 190 m² rooftop terrace

Stream Building represents an endeavour of collective intelligence that revolutionises the traditional roles of project management and project ownership.

Fully let (OVHcloud for offices and Zoku for hotel accommodation) before its delivery in 2022, the programme is helping to transform the new Clichy-Batignolles district (Paris 17th arrondissement) by enhancing its centrality and dynamism.

As a private project promoting a collective interest, Stream Building is also a benchmark for sustainable innovation and reduction of the carbon footprint, featuring a structure combining wood and concrete, a rooftop vegetable garden, hops grown on the façade, a green inset and solar panel.

Lastly, the project also stands out by boasting the highest levels of labelling and certification: BBCA, Effinergie+, HQE tertiary Exceptional, BREEAM Excellent, Cahier des Prescriptions Environnementales et de Développement Durable for the Clichy-Batignolles ZAC, Plan Climat Paris and E+C-.

ContaCt

Press Relations

Géraldine Lemoine

Tél : + 33 (0)1 58 97 51 00
Mail : geraldine.lemoine@covivio.fr

Louise-Marie Guinet

Tél : + 33 (0)1 43 26 73 56
Mail : covivio@wellcom.fr

Investor Relations

Vladimir Minot

Tél : + 33 (0)1 58 97 51 94
Mail : vladimir.minot@covivio.fr