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SURONGO AMERICA

Wholly-owned American company that holds the Group’s real estate and industrial investments in the United States, primarily on the East Coast (North Carolina, Georgia, Florida, Massachusetts and New York).

In 2009, the company acquired 1.2% of the Noël Group, currently owning 30.5%.

Village Square Partners LLP, a residential complex of 240 apartments in Jacksonville (Florida) was 91% occupied at the end of 2009 compared with 92% at the end of 2008. The occupancy rate of the apartments is satisfactory and the incomes are stable. The fair value of this real estate investment fell by USD 3.4 million in 2009 (Group share after tax).

The real estate partnership, DSF Capital Partners LP, has invested in two projects. The first relates to the renovation of a building which, at the end of December 2009, was let to 92%. The second project is the construction of an hotel. This was inaugurated on 12 February 2009 and has an occupancy rate close to the level budgeted for 2009.

In 2006, Surongo America signed up to a commitment of USD 10 million in DSF Capital Partners III LP. Currently, the partnership has called on 90%. This partnership’s investments are located in the periphery of Washington DC, which is one of the areas least affected by the crisis. The construction of the third project should start in 2010.

The real estate partnership, Gotham City Residential Partners I LP in New York was subscribed at the end of 2006. This project is based on the restoration of apartments with rents that are limited but which little by little can return to market levels. Surongo America’s total commitment amounts to USD 10 million, USD 5.4 million of which were released at 31 December 2009, unchanged since 2008. Since September 2008, the partnership has made no more new building acquisitions. By the end of the 2009, 93.5% of the apartments were rented (against 92% at the end of 2008), 4.5% are being renovated and 2% are for let.

In October 2008, Surongo America seized an investment opportunity by joining, with its traditional partners, in a recovery project in relation to a real estate complex in Florida. The investment amounted to USD 1.8 million.

The 2009 earnings were mainly impacted by a fair value correction of Village Square Partner, LP (see above) and by USD 2.9 million on the Noël Group.