Introduction

Real estate’s role in the asset base is to release substantial income and regular growth. It is a key contributor to asset and cash flow stability.

The real estate policy has been defined according to the following criteria:

• Limited number of investments, reaching a critical size
• Direct investments, if possible with a partner specialising in real estate management
• Expected return higher than that of 10-year Government bonds, and growing.
  

The predominant share of the Company’s real estate investments is still the holding in Cofinimmo. It held 4.01% of the company (directly and indirectly) as of 31 December 2009.

Since the end of 2003, the Company has held a stake in the property development company, Codic International.

Lastly, the Company invests, via its American subsidiary, Surongo America, in top of the range residential projects in the United States.

In addition to these three investments, the portfolio also includes:

• the buildings at the registered office site and the Treurenberg site (3,000 m² of offices, 2,000 m² of residential property and 70 m² of commercial premises); (see here)
• various other surfaces and land holdings in the provinces of Liege, Hainaut (42 ha) and Western Flanders; (see here)
• two office buildings in Luxembourg (320 m²) The Group's current real estate income in 2007 amounted to € 3.9 compared to € 4.0 million in 2006. (see here).

The Group’s current real estate revenues in 2009 amounted to EUR 3.4 million against EUR 3.3 million in 2008.