COLONIAL AFFICHE UN B?N?FICE NET DE 58 MILLIONS D'EUROS POUR LE TROISI?ME TRIMESTRE 2006

RÉSULTATS 3ème trimestre 2006

COLONIAL AFFICHE UN BÉNÉFICE NET DE 58 MILLIONS D'EUROS POUR LE TROISIÈME TRIMESTRE 2006

- Les résultats du troisième trimestre sont favorisés par l'activité de location du Groupe : avec 214,6 millions d'euros, les revenus de location augmentent de 17,2 %.

- Une évolution favorable du marché des bureaux stimule le taux d'occupation d'immeubles du Groupe, qui atteint 98,3 %.

- Colonial possède un excellent portefeuille de projets d'immeubles à louer qui atteignent au total plus de 335 000 m2, avec un investissement estimé qui dépasse les 500 millions d'euros.

- Avec 377,8 M€ de stock de pré-ventes d'habitations, le Groupe peut tabler sur une prévision des ventes comptables sur deux ans.

Results

Barcelona, 26 October 2006.- Up to September 2006, the Colonial Group posted €58 M profit for the period, or less than the €252.7 M obtained in the same period last year. The decline was mainly attributable to the absence of land sales and to smaller revenues from asset disposals after the one-off sale of the Barcelona 2 property complex in the first half of 2005.

Despite the reduction in non-recurring items, it is worth highlighting Q3 2006's favourable contribution from the rental business, the Group's main recurrent activity. The Colonial Group's €214.6 M in rental income accordingly represented a 17.2% advance on the previous year. In all, the Colonial Group ended the third quarter with €411.3 M total revenues.

Rental business

Rental income advances by 17.2%

Group rental income totalled €214.6 M, or a 17.2% increase on the €183.1 M figure by Q3 2005. Most of these revenues were from office buildings and were focused solely on the three markets where the Group is present: Paris, Madrid and Barcelona.

The rental business's Ebitda increased to €198.6 M, or some 13.7% more than the previous year and with an average efficiency of 79.7% as measured by the Ebitda margin.

The recovery is strengthening in the central business districts' office markets in Madrid and Barcelona, cities where Colonial-owned offices are registering above-99% occupancy. The Paris market, meanwhile, is also beginning to show signs of greater strength, as reflected by the Group's 96% occupancy rate in its offices in the French capital.

All this allowed the Colonial Group to record 98.3% occupancy in its office buildings at end-Q3 2006, a significantly better figure than the 94% level at the end of the same period in 2005.

More than 1.4 M m2 lettable area

The Colonial Group's commercial activity in the first nine months of 2006 took the form of new agreements signed for 75,000 m2.

These new rental agreements in the year include a deal signed with Gas Natural to let all of Barcelona's Torre Marenostrum, which has above-ground surface area of 22,000 m2 and 553 parking spaces.

With these new agreements, Colonial ended the third quarter of 2006 managing total surface area of more than 1.4 M m2, of which more than 80% corresponded to office buildings.

€474 M in investments and more than 335,000 m2 projects in progress

In the first nine months of this year, the Group invested €474 M in buying and developing offices to let. In Spain, worth highlighting is the €105 M purchase of the Philips building in Madrid, located at the junction of the M30 and the Avenida de América.
Moreover, via its subsidiary Société Foncière Lyonnaise (SFL) the Colonial Group has invested €95 M in the Paris market by buying a building at 247-251, rue Saint Honoré, and a further €125 M in purchasing a building at Rue Grenelle 103, both of which are in the French capital's central business district.

These new investments have expanded Colonial's portfolio of projects under analysis and implementation to 12 office buildings, two logistics parks and a retail centre. These are spread across the three markets where the Group is present and cover more than 335,000 m2, with completion due over the next three years.

Residential development and land business

Book sales of housing by the end of Q3 2006 equalled €118.3 M, which was less than Q3 2005's cumulative, €144.6 M due to calendar effects in the rate of recognising developments. The residential development and land business's Ebitda totalled €40.3 M, meanwhile, representing a decrease on the 2005's cumulative third quarter €95.7 M, after practically no land sales in the first nine months of 2006, unlike in the previous year.

Cumulative commercial housing sales at end-September 2006 totalled €142 M, boosting the pre-sale stock on 30 September to €377.8 M, a figure covering practically two years of future book sales.

Developments in progress in the third quarter covered more than 1,800 homes, furthermore, located mainly in the Madrid and Barcelona metropolitan areas.

Lastly, turning to the land bank, this ended the quarter at 838,000 m2.

Other information

Inmocaral public tender offer

On 26 September the acceptance period of the Inmocaral Group's public tender offer for Inmobiliaria Colonial came to an end. This had a favourable outcome, having been accepted by shareholders representing 93.4% of Colonial's share capital.

For more information:

Company
Colonial
Albert Casajuana
Tel: + 34 93 404 85 73

Press
Burson-Marsteller
Izaskun Martínez
Tel: + 34 93 201 10 28