COLONIAL: AUMENTA L'UTILE DEL TERZO TRIMESTRE 2007 A 356,8 MILIONI DI EURO

Madrid, 14 novembre 2007


COLONIAL: AUMENTA L'UTILE DEL TERZO TRIMESTRE 2007 A 356,8 MILIONI DI EURO

- Risultato operativo ante interessi a 662,6 milioni

- I risultati includono quelli di Riofisa dal 31 luglio 2007, a seguito dell'esito positivo dell'OPA

I risultati di Inmobiliaria Colonial per il terzo trimestre 2007 evidenziano un risultato netto di 356,8 milioni di euro, su ricavi di 629,4 milioni. Il risultato operativo ante interessi si attesta a 662,6 milioni, grazie all'evoluzione positiva dell'attività di locazione e alle rivalutazioni del patrimonio immobiliare.

Worthy of note is the strong ongoing growth in rental income, to E228.6 million. Some 55% (E125.5 million) of revenue from rental assets was generated from SFL's contribution in France and the remainder (E103.2 million) from Spain. The rental property portfolio in September 2007 covered around 4.2 million m2, of which 1.6 million m2 were let out and the rest under development.

The healthy results can be attributed to the composition of Inmobiliaria Colonial's assets. These are focused on prime office building rentals, with favourable momentum being seen on the markets where the Company is present - and above all its location in the best districts of Paris, Barcelona and Madrid. This has enabled it to enjoy occupancy (97.3%) of above the market average. Furthermore, with the Riofisa acquisition, the Colonial Group has added a group of high-quality retail centres to its rental portfolio, covering more than 125,000 m2 and seeing 96.7% occupancy.

The total value of Inmobiliaria Colonial's assets amounts to E13,607 million. The acquisition of Riofisa makes the Group one of Europe's benchmark property companies, with real-estate assets valued at E12,093 million, of which most (78%, or E9,433 million) are in the rental business. Meanwhile, the Riofisa purchase has diversified the Group's rental asset portfolio not only by use, but also by condition and geographical area. The office portfolio's share thus declined to 73% (from the first half's proportion of 85%) while that of retail centres expanded to 19%. The portfolio of projects under development also increased, to 27% of rental assets. Furthermore, the rest of Spain's main cities and two of Europe's most important emerging economies - Bulgaria and Romania - have now joined the markets where the Group has traditionally been present (Paris, Madrid and Barcelona). The residential development business, for its part, was valued at E2,661 million.

Turning to the net asset value (NAV) per share, this equals E2.97 euros, some 15% more than in December 2006.

Investments in the third quarter came to E765 million, of which E486 million corresponded to building purchases and the implementation of project development works. Riofisa's integration has allowed the Group a significant increase and diversification in its portfolio of projects under development. Its rental property projects now represent 11 office buildings, 23 retail centres and 22 industrial estates and cover around 3 million m2.

Revenues from rental asset divestments equalled E86.7 million, or 7.1% more than their value in the December 2006 market appraisals. These were booked solely from properties located in Madrid that - due to their size, use or location - do not dovetail with the Group strategy.

Sales of residential developments and land in the first nine months of the year totalled E401 million. With the Riofisa acquisition, the Company's land bank now covers approximately 2.7 million m2, of which most is in Madrid and Catalonia (53%) and the rest (47%) in Andalusia. The Group is to continue its strategy of gradually reducing its residential land bank via disposals. Its two objectives in this are to optimise scale in order to bring it into line with the Company's strategy - seeking to focus activity on the rental business, with its greater stability and recurrent earnings generation - and to reduce debt.

SIGNIFICANT EVENTS IN Q3

Riofisa acquisition

On 1 August, Spain's National Securities Market Commission (Comisión Nacional del Mercado de Valores) announced the success of the Riofisa takeover bid with 99.41% acceptance. The Boards of Directors of the two companies adopted the merger by absorption on 31 October.

With this acquisition Inmobiliaria Colonial rounds out its property business model with the development and operation of retail centres. The purchase is in line with Colonial's strategy of including high-quality assets in its properties that ensure a stable source of revenues, to form a solid Company safeguarded from business cycles and generating value for its shareholders.

E709.5 million capital increase

In August 2007 Colonial successfully completed a E709.5 million capital increase that aimed to finance the acquisition of Riofisa and was fully subscribed. This transaction represents 2007's largest capital increase by a listed Spanish real-estate company.

Syndicated loan

On 18 September, furthermore, Inmobiliaria Colonial agreed on modifications to certain aspects of its long-term financing agreement - representing E6,409 million after the successful capital increase - with the four participating financial institutions.

This deal not only refinances debts from the acquisition of Inmobiliaria Colonial, S.A. (absorbed company), FCC and Riofisa, as well as the syndicated loan of Inmobiliaria Colonial, S.A. (absorbed company). It also gives the Company the operational capacity to finance the Group's medium-term activities.

Contact:

Pilar Suárez-Carreño Tel.: + 34 91 575 45 05 [email protected]

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