TRANSFORMING MARSEILLE

EUROMÉDITERRANÉE Marseille, Mediterranean Eco-City: Project Dynamics & Market Performance

MIPIM 2015

CBRE

CONTENTS Part 1 Euroméditerranée: the Mediterranean EcoCity Part 2 Euroméditerranée: an office market of international standing Part 3 Analysis of the retail market

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Part 1

Euroméditerranée: the Mediterranean EcoCity

Euroméditerranée: the Mediterranean EcoCity

Marseille: Economic, social and cultural acceleration • Euroméditerranée is celebrating its 20th anniversary in 2015 and has already helped transform the city by developing, among other things, the following for companies:  France's 3rd largest business district;  A media hub integrating a comprehensive entrepreneurial support chain.

• With a mission to deliver economic, social and cultural development, Euroméditerranée is significantly contributing to the appeal and influence of the City of Marseille:  International business events;  Internationally recognised infrastructures.

• Euroméditerranée has started planning the 170 hectares of its extension. • The "EcoCité" project will start with a 60,000 sq.m pilot operation on a 2.4 hectare plot located near EDF regional headquarters. • This demonstration block will make it possible to test eco-construction schemes meant to be rolled out on a large scale in the area of the planning project and throughout the Mediterranean region.

A JOINT VENTURE BETWEEN THE STATE AND THE LOCAL AUTHORITIES, EUROMÉDITERRANÉE IS A PROJECT OF NATIONAL INTEREST (“OIN”) WHICH SEEKS TO POSITION MARSEILLE AS ONE OF THE TOP EUROPEAN CITIES.

"Marseille-Provence European Capital of Culture" in 2013 Marseille distinguished as the "2014 European city of the year" by the London Academy of Urbanism. Marseille named "2017 European Sports Capital"

Part 1: OIN

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Euroméditerranée: the Mediterranean EcoCity

The most important urban regeneration project in Southern Europe, involving major public sector stakeholders SCOPE

AMBITION

• 480 ha (1,200 acres) in the heart of the City of Marseille, between the commercial port, the Vieux-Port district and the TGV train station.

• To build a new "city within the city" in accordance with key sustainable development principles. Euroméditerranée is an urban regeneration project as well an economic, social and cultural development initiative.

The Euroméditerranée project: key figures Territory Housing units • New • Renovated

480 hectares (1,200 acres)

+ 18,000 + 6,000

Offices and business

+ 1,000,000 sq.m

Public infrastructures

+ 200,000 sq.m

Retail units

+ 200,000 sq.m

Parks and public areas

+ 40 hectares

Employment

+ 35,000

Inhabitants

+ 40,000

Investments

+ €7 billion

Part 1: OIN

Source: Euroméditerranée

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Euroméditerranée: the Mediterranean EcoCity

Key projects… AN EXTENSION FOR NEW AMBITIONS

CITÉ DE LA MÉDITERRANÉE 4

1 ZAC (joint development zone): 60ha and 443,000 sq.m buildable area • 149,000 sq.m of office space • 76,000 sq.m for retail & services • 47,000 sq.m of public and private facilities • 2,250 housing units • 50,000 sq.m hospital (600 beds)

169 ha • +100,000 sq.m of retail space • +500,000 sq.m of office and light industrial space • +14,000 housing units • +100,000 sq.m of public facilities • +14 hectares of green areas • +20,000 jobs • +30,000 inhabitants

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BELLE DE MAI JOLIETTE ZAC (joint development zone): 22ha (54 acres) and 300,000 sq.m of constructed surface area • 120,000 sq.m of office space • 34,000 sq.m of retail and services • 48,000 sq.m of public and private facilities • 1,660 new/renovated housing units • 1 secondary school, 1 primary school, 1 nursery school

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1 5

2

SAINT CHARLES

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6 ZAC (joint development zone): 15.2ha (38 acres) and 120,000 GEA sq.m (gross floor area) planned • 2,000 sq.m of retail space • 10,000 sq.m of office space • 20,000 sq.m making up the university centre • 3 ha of parks and green spaces • 10,000 sq.m of public and private infrastructures including 1 school group • 500 new housing units • 15,000 sq.m of hotel facilities

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RUE DE LA RÉPUBLIQUE 3 1.1 km and 362,000 sq.m of new or renovated surface area • 80,000 sq.m of retail space • 5,200 housing units • 1,560 parking spaces

Part 1: Scope

5 12 ha • Media hub: 23,000 sq.m built upon • Heritage hub: 24,000 sq.m built upon • Entertainment hub: 25,000 sq.m built upon

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Euroméditerranée: the Mediterranean EcoCity

… and environmentally responsible developments.

EXEMPLARY ACHIEVEMENTS CONSISTENT WITH A SUSTAINABLE DEVELOPMENT LOGIC Les Quais d’Arenc (2014 to 2020) Mixed project combining offices, hotels, holiday residence, retail units, luxury housing units and car parks. 93,600 sq.m constructed surface area including: • Offices: 50,000 sq.m of multi-user offices in accordance with international standards: LEED, HQE, RT 2012 • Hotels and holiday residence: 24,500 sq.m • Luxury housing units: 20,000 sq.m • Retail units 2,000 sq.m • Parking: 917 parking spaces • 2,800 sq.m for quality-of-life services (inter-company restaurant, etc.)

Investment: €450 million

Part 1: Development

“Ilot 34” (Delivered) Mixed project including: • Offices: 13,200 sq.m • Retail units 1,000 sq.m • Housing units : 4,000 sq.m and senior-citizen residential unit: 4,000 sq.m • Hotels: 3,900 sq.m • Parking: 350 parking spaces

€42 million invested in works

Euromed Center (2015 to 2017)

Les Terrasses du Port (Delivered)

70,000 sq.m mixed project including: • Offices: 47,800 sq.m • The 4-star Golden Tulip Hotel and Business Centre: 210 rooms • Cinema multiplex: 15 screens and 3,000 seats • Retail units 2,000 sq.m • Public car park: 846 spaces • Park and gardens: 5,000 sq.m

Investment > €300 million

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Regional shopping centre including: • 61,000 sq.m of retail units • 190 shops and restaurants • 3,000 parking spaces

Investment: €450 million

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Euroméditerranée: the Mediterranean EcoCity

A 1st phase about to be completed…

INCLUDING THE "INHABITED PARK" OF THE ARENC DISTRICT • • • • •

Approximately A "Garden City" concept Vast public areas planted with trees Lush private plots opening onto public areas Contrasting scales of construction The expression of Mediterranean architecture integrating environmental concerns

2,700 housing units planned with 830 already completed

Part 1: Development

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Euroméditerranée: the Mediterranean EcoCity

… 2nd phase in the planning stage, including the launch of the 1st ZAC (urban development zone) and the model district: the "Allar" Mediterranean EcoCity (1/2) ENVIRONMENTAL APPROACH INTEGRATING LOCAL SPECIFIC CHARACTERISTICS: CLIMATIC, SOCIAL AND ECONOMIC: • Contributing to the metropolitan scheme and developing a range of major facilities, • Pursuing economic development, supporting social and cultural transformation, • Developing a "low-cost and easy-tech" sustainable Mediterranean city model which can be replicated throughout the Mediterranean rim, • Promoting an innovative and "learning" city.

ZAC Littorale • Housing units: 510,000 sq.m with 25% social housing and 15% price-controlled housing • Tertiary: 115,000 sq.m • Business/retail units: 43,000 sq.m • Infrastructures: 34,000 sq.m

Part 1: Development

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Euroméditerranée: the Mediterranean EcoCity

… 2nd phase in the planning stage, including the launch of the 1st ZAC (urban development zone) and the model district: the "Allar" Mediterranean EcoCity (2/2) FOCUS ON: THE ALLAR MODEL DISTRICT (60,000 sq.m): • This laboratory for sustainable Mediterranean development will notably host community-based facilities, housing units and offices with a bioclimatic architecture: low energy consumption and use of renewable energies including a seawater loop. The most successful achievements will be duplicated throughout the extension. • The building programme will include a hotel complex. • A model block within the experimental territory for the development of digital services to local residents and businesses.

Part 1: Development

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Euroméditerranée: the Mediterranean EcoCity

Major facilities available soon

Part 1: Development

Multimodal hub & park-and-ride facility for the Metro extension

The Aréna

Aygalades urban park - 14 hectares

Two seawater thermal exchange loops

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Euroméditerranée: the Mediterranean EcoCity

The most accessible business hub in the south of France

WITHIN 20KM OF THE MARSEILLE PROVENCE INTERNATIONAL AIRPORT

MARSEILLE ST CHARLES TGV TRAIN STATION IN THE HEART OF THE PROJECT SCOPE GRAND PORT MARITIME DE MARSEILLE (MARITIME PORT OR GPMM)

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152 routes and 32 scheduled airlines in 2015.

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France's 1st long-haul network outside Paris in number of destinations (2 terminals, MP1 and MP2).

• • • •

8.2 million passengers in 2014 (3rd outside Paris). MP2 (low-cost terminal): traffic rose +3.7% between 2013 and 2014. 53,345 tonnes of cargo in 2014 (1st outside Paris). Direct link to the Euroméditerranée central business district in 20min:  TER (regional express) train: 63 journeys per day;  Buses/shuttles: departure every 15min.

• • •

France's 2nd largest train station outside Paris in terms of passenger traffic. Over 11.5 million passengers in 2013. Within 2 Metro stops and 1 TER/commuter train stop of the heart of the business district.

• •

France's no. 1 cruise port: 1,315 million passengers in 2014 (+11% /2013). 1.4 million passengers expected in 2015 and a long-term target of 2 million cruise passengers per year. In 2014, GPMM was the no. 1 French port, the no. 2 Mediterranean port and the no. 4 European port and the 41st largest international port in terms of total freight traffic with 85,997,000 tonnes of freight handled.

•

PUBLIC TRANSPORTATION WITHIN EUROMÉDITERRANÉE: JOURNEY TIMES KEPT TO A MINIMUM

Directly connected to 3 motorways to Spain, Italy and Northern Europe: A55, A50 and A7.

Tramway - line 2

Part 1: Accessibility

Numerous bus lines

Metro - lines 1&2

TER train station

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Euroméditerranée: the Mediterranean EcoCity

Marseille one of the TOP 4 European telecom hubs and networks with London, Amsterdam and Frankfurt • Marseille is the single point of entry for underwater fibre-optic telecommunications cables linking France to Singapore and Shanghai through Asia, the Middle East, North Africa and Europe. SEA-ME-WE 4 SEA-ME-WE 5 AAE1

Thanks to sizeable investments, Marseille plays a major role in the area of telecom and Internet connections, acting as a hub between

Europe, Asia, Africa and the Middle East.

• A data storage infrastructure worthy of a European capital with a varied supply of international data centres. "Marseille has become a reputable city for the distribution of digital media content and for Cloud computing solutions, the perfect environment for developing Europe's major new telecom hub" Fabrice Coquio, CEO of Interxion France

• A territory of talent (engineers, developers, technicians) at an attractive cost • The American video-on-demand giant Netflix chose to produce a series entitled "Marseille" to mark its installation in France and Europe. (Les Echos, 03/11/2014)

THEY CHOSE MARSEILLE AND ITS REGION

*ranks cities based on their "provision of advanced producer services such as accountancy, advertising, banking/finance, and law".

Part 1: Accessibility

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Euroméditerranée: the Mediterranean EcoCity

Aix-Marseille is part of the French digital team • 40,000 salaried employees, 7,000 companies and €8 billion in turnover • Complementary areas of expertise: software and services, e-tourism and e-commerce, content and cross-media production, micro-electronics and NFC, etc. • The most recent OECD report ranked Aix-Marseille as the 18th most innovative city in Europe before Barcelona (56th), with the second-highest employment growth among European urban areas (Dec. 2013) Aix-Marseille, an ecosystem awarded the "Métropole French Tech" label on 12 November 2014

• Euroméditerranée, a territory of experimentation for an intelligent, sustainable Mediterranean city • Marseille Innovation, an incubator for innovative businesses, has been supporting start-ups for over 20 years. The Belle-de-Mai incubator is dedicated to digital media. • The Belle-de-Mai incubator, the only national incubator dedicated to multimedia • P/Factory, a private accelerator of digital start-ups, arising from the Provence Business Angels network (Nov. 2014) • Appcubateur, an acceleration programme dedicated to the development of multi-screen applications sponsored by Stardust, a mobile testing specialist

THEY SUPPORT START-UPS IN THE EUROMEDITERRANEE AREA

Part 1: Innovation

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Euroméditerranée: the Mediterranean EcoCity

Euroméditerranée enhances the appeal of the Marseille city centre by developing its housing supply • 5,000 new arrivals to Marseille per year since 2006.

• Preserved social and generational diversity: • Construction of residences for students and senior citizens.

• Since 1995, Euroméditerranée achievements have included: • Approximately 4,000 new housing units (20% of the total offer planned in terms of new accommodation). • Approximately 3,400 renovations. • Ultimately 50,000 new residents within the area.

H99 – Constructa (2017) Part 1: Housing

Renovation: Rue de la République - Joliette

Cœur Euromed – Bouwfonds Marignan (2015)

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Renovation: Joliette M5 housing units

CBRE

Euroméditerranée: the Mediterranean EcoCity

A new drive for tourism in Marseille

A SURGE IN EVENTS AND BUSINESS TOURISM

TOURISM IN THE CITY OF MARSEILLE

STEADILY INCREASING NUMBER OF CRUISE PASSENGERS

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•

•

• •

Within the top 10 French cities in terms of conferences and trade shows (ICCA2012 rankings). Business tourism generates nearly €150 million in economic spin-off. Events of international calibre (2012 World Water Forum, Sea Trade Med

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• • • •

Cruise and Superyacht Convention). 2013 European Capital of Culture. Hosting international sporting events (Tennis Open 13, Euro 2016, candidate for 2017 European Sports Capital). Natural tourist assets (Calanques Natural Park, GR13 hiking trail etc.).

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10 million visitors for Marseille Provence in 2013: best ever performance for a European Capital of Culture. 330,000 delegate days in 2014 (stable versus 2013). Approximately 1/3 of the hotel accommodation in 4* and 5* categories. France's only city with growing hotel occupancy rates (2013).

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• • •

1,315 million passengers in 2014 (+11% compared with 2013). Passenger volume of more than 8.8 million since the resurgence of cruises in 1996. 458 stopovers. €111 million invested over 20 years (19962016). Annual economic spinoff: €160 million for Marseille and the surrounding area.

interviewed claim to be satisfied and would recommend the destination

La Provence newspaper, February 2014

‘Allure of the Seas’ arriving in Marseille

MuCEM

Part 1: Tourism

98% of the tourists

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Euroméditerranée: the Mediterranean EcoCity

Restructuring and upscaling of the hotel accommodation

Inauguration of the Intercontinental Marseille 5-star hotel in a listed 18th century building

B&B Hotels - Euroméditerranée

IN MARSEILLE:

Suite Novotel & IBIS Hotel - Euroméditerranée

HOTEL ACCOMMODATION IN THE EUROMÉDITERRANÉE district

• Hôtel Dieu: No. 1 luxury hotel in Marseille. • The 1st stone of the Golden Tulip**** hotel was laid in the new Euromed Center living facility (June 2014). • 5.6 million nights were booked in 2013 in Bouches-du-Rhône (+8% compared with 2012) • 1,735 rooms in 4* and 5* categories in Marseille. • Marseille currently offers France's most modern hotel facilities. • Looking forward to 2020: convention/event centre which can accommodate 15,000 people (ARENA).

Part 1: Hotels

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Euroméditerranée: the Mediterranean EcoCity

Culture and leisure Silo

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Departmental Archives and Library

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Regional Contemporary Art Collection (FRAC)

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Tower - Panorama

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Vieille Charité

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Villa Méditerranée

5 7

1 Joliette Minoterie Theatre

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2 Belle de Mai

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Regards de Provence Museum

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8 St Charles Rue de la république

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MUCEM & Fort Saint Jean

Part 1: Culture

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4 9 4

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Euroméditerranée: the Mediterranean EcoCity

A quality education hub in the Euroméditerranée district AIX-MARSEILLE UNIVERSITY

KEDGE BUSINESS SCHOOL

EMD, SCHOOL OF MANAGEMENT

EPITECH

ESPI GROUP

• France's no. 1 university with more than 70,000 students including a campus within the Euroméditerranée district.

• The La Joliette Campus, an area dedicated to businesses, hosts programmes for Entrepreneurs and Managers (MBA).

• Relocation to the Euroméditerranée district in 2012 (capacity of 2,000 students).

• The school is in the Euroméditerranée area and is home to 120 students.

• The Ecole Supérieure des Professions Immobilières (ESPI or School of Real Estate Professions) has been established in the Euroméditerranée area since 2012.

Upcoming developments: strengthening of the university centre in the St Charles ZAC (joint development zone), development of AMU (Aix-Marseille Université) sectors, an inter-university library, a research laboratory, likely establishment of the IMVT (Institut Méditerranéen de la Ville et des Territoires or Mediterranean Institute of Cities and Territories)

Kedge Business School – La Joliette Campus – Euroméditerranée (Continuing education and MBA)

EPITECH - Euroméditerranée Part 1: Education

EMD: School of Management – Euroméditerranée

A range of education/training services consistent with the needs of the populations and businesses

Aix-Marseille University

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Euroméditerranée: the Mediterranean EcoCity

The largest city centre business district in Southern Europe

Les Docks

Euromed Center

La Marseillaise

Le Silo

THE EUROMÉDITERRANÉE BUSINESS DISTRICT IS:

• 4,500 businesses and 35,000 jobs directly within the district. • 84% of the city's tertiary jobs. • 7 major areas of activity: real estate/building & public works, banking and insurance, logistics/transport, mobile and multimedia industries, business services, culture, tourism. • Managers (43%) and university graduates are strongly represented (68% with at least a 2-year degree). • Platform of services to support businesses. • Attractive hub for foreign operations (PACA - Provence-Alpes-Côte d'Azur: France's 2nd region for FDI - Foreign Direct Investment).

CMA CGM tower

Part 1: Businesses/jobs

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Euroméditerranée: the Mediterranean EcoCity

A territory already chosen by national and international companies, including… BANKING / INSURANCE / FINANCIAL SERVICES / CONSULTANCY

HEALTHCARE

GREEN GROWTH / REAL ESTATE / DEVELOPMENT

ICT / MEDIA

INTERNATIONAL TRADE / TRANSPORT

TOURISM & LEISURE

FRENCH INTERNATIONAL AGENCIES

MARSEILLE GIANTS INTENT ON TAKING ON THE WORLD…

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• •

CMA-CGM: worldwide leading container shipping group headed by Jacques Saadé (€13 billion turnover, employing 18,000 staff). SNEF: electrical and HVAC engineering (10,000 staff and turnover of nearly €1 billion). Sodexo: world leader in catering services created by Pierre Bellon (420,000 employees and a turnover of €18 billion).

…they are located in Euroméditerranée district.

Part 1: Businesses/jobs

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Euroméditerranée: the Mediterranean EcoCity

An award-winning territory "2013 EUROPEAN CAPITAL OF CULTURE"

The Allar block, 2014 Housing and Territory Award

Part 1: Winners' list

"2014 EUROPEAN PRIZE FOR URBAN PUBLIC SPACE" for the redevelopment of Marseille's Vieux-Port awarded by seven architecture institutions

Voûtes de la Major restoration team, winner of the "GESTE D'OR" award in 2014 during the Heritage Show at the Louvre

Les Terrasses du Port honoured at MAPIC 2014 in the "BEST URBAN PROJECT" category

"2014 EUROPEAN CITY OF THE YEAR AWARD" presented by the London Academy of Urbanism (jury of 500 urban specialists) – URBANISM AWARDS

The Council of Europe awarded its 2015 Museum Prize to MuCEM

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"2017 EUROPEAN CAPITAL"

CBRE

SPORTS

Euroméditerranée: the Mediterranean EcoCity

Summary of the assets of Marseille and the Euroméditerranée district ECONOMY

DEMOGRAPHICS

PROPERTIES AVAILABLE (ULTIMATELY)

• •

•

• • •

•

France's 3rd largest economic region. France's no. 1 sea port within the Euroméditerranée district. Networks of excellence: business services, aeronautics, new technologies, logistics, telecommunications. microelectronics, multimedia, healthcare/medicine, biotechnologies, maritime (tourism, freight).

•

Within France's 2nd largest city with a population growth exceeding the national average. The objective of the district is to accommodate 40,000 new residents.

1,000,000 sq.m of offices. 200,000 sq.m of retail space. 24,000 new/renovated housing units.

LOCATION / ACCESSIBILITY

HIGHER EDUCATION

LIVING ENVIRONMENT

• •

•

• •

•

An ideal location in the heart of Marseille. Near the Marseille-Provence international airport. In the heart of a multimodal network.

Part 1: Conclusion

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France's no. 1 university within the Euroméditerranée district. Grandes écoles meeting the needs of businesses (EMD, School of Management, Kedge Business School, EPITECH, ESPI, etc.)

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300 days of sunshine per year. Mediterranean Sea.

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Part 2

Euroméditerranée: an office market of international standing

Characteristics of the investment market

Office take-up Euroméditerranée: a strategic and prized location

OFFICE TAKE-UP EVOLUTION (IN M²)

2012

2013

2014

160 000 140 000

Marseille Take-up (sq.m)

88,000

68,000

90,000

128.000

Aix-Marseille average: 120,000 sq.m

120 000 100 000

90.000

80 000

New/Refurbished proportion

30%

26%

63%

60 000

52.500

40 000

Euroméditerranée

20 000

Take-up (sq.m) New/Refurbished proportion

29,000

25,000

52,500

60%

74%

77%

0 2007

Aix-Marseille

The total property stock within the entire Euroméditerranée district is approximately 550,000 sq.m, and approximately 375,000 sq.m for the central business district of La Joliette.

2008

2009

2010

2011

Marseille

2012

2013

2014

Euroméditerranée

TAKE-UP WITHIN EUROMÉDITERRANÉE REPRESENTS APPROXIMATELY 60% OF MARSEILLE'S TOTAL TAKE-UP AND AN AVERAGE OF 30% OF TOTAL TAKE-UP FOR THE LAST 10 YEARS.

Best year for Marseille since 2007 and record-breaking year for Euroméditerranée.

Source: CBRE *Geographic scope of analysis: Marseille Part 2: Tertiary

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Characteristics of the investment market

Rental values in the Euroméditerranée district are stable despite the economic crisis RENTAL RATES BY SECTOR (IN € EXCL. VAT EXCL. CHARGES/ SQ.M/YEAR) nd

2 Euroméditerranée

hand

New and Refurbished

RENTAL RATE EVOLUTION IN MARSEILLE (IN € EXCL. VAT EXCL. CHARGES/SQ.M/YEAR) PRIME RENTAL VALUE EVOLUTION

350 €

300 €

300 €

180-250

250-300

250 €

Marseille Prado

160

235

200 €

Marseille Capelette

140

170

150 €

Marseille East

120

150

100 €

Marseille North

130

170

50 €

Aix Centre

180

200

Aix Les Milles

110

155

210 €

215 €

220 €

270 €

250 €

0€ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Condition

Premium rental rate = Euroméditerranée rental rate

Euroméditerranée is the reference sector for premium rental rates at €300 excl. VAT excl. charges/sq.m/year.

A wide variety of new and second-hand rental offers and values.

*Source ndlr Source: CBRE Part 2: Tertiary

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Tertiary market analysis

A diversity of rental values: A sampling of take-up values within the Euroméditerranée central business district

Euromed Center SMC 478 sq.m €265/sq.m in 2014

€275/sq.m

Les Docks Les Docks: Notary's office 118 sq.m - €240/sq.m in 2013

€265/sq.m €260/sq.m

Grand Large – PACA region 1,129sq.m - €220/sq.m in 2014 L’Angle: Generali (extension) 324sq.m - €190/sq.m in 2013

€300/sq.m

€240/sq.m €235/sq.m

La Marseillaise NC NC sq.m - 300 €/sq.m in 2014

€220/sq.m

Urban Center Pole Emploi PACA 579 sq.m - €170/sq.m in 2014

€210/sq.m La Marseillaise CUMPM 16,000sq.m - €275/sq.m in 2012

€190/sq.m €180/sq.m

Les Docks NC 900 sq.m - €260/sq.m in 2014

€170/sq.m €140/sq.m

Cap Azur - UASC 422sq.m - €235/sq.m in 2014 BLOCK 34 - CPAM 4,589sq.m - €210/sq.m in 2013

Le Schuman AISMT 249sq.m - €140/sq.m in 2013

Rue de la République Systra 297sq.m - €180/sq.m in 2013

Part 2: Tertiary

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Characteristics of the investment market

Immediate supply being modernised in the Euroméditerranée area • Immediate supply within the Euroméditerranée district currently represents approximately 25% of that of Marseille. • Vacancy rate < 2% for new properties in the central business district of La Joliette, Euroméditerranée.

EVOLUTION OF THE IMMEDIATE SUPPLY OF OFFICES IN THE AIX/MARSEILLE METROPOLITAN AREA (IN SQ.M)

250 000

2012

2013

2014

Marseille

200.000

200 000

Immediate supply

140,000

147,000

120,000

New/Refurbished proportion

20%

17%

9.80%

6.09%

6.36%

5.20%

Immediate supply

15,000

30,000

32,000

New/Refurbished proportion

40%

14%

21%

3.00%

6.00%

5.80%

150 000 120.000

Vacancy rate

100 000

Euroméditerranée

Vacancy rate

50 000 32.000

0 2007 2008 2009 2010 2011 2012 2013 2014 Aix-Marseille

Marseille

Euroméditerranée Source: CBRE

Part 2: Tertiary

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Characteristics of the investment market

Euroméditerranée: 2nd largest regional investment market*

2/3 of the entrepreneurs who know about the Euroméditerranée project have confidence in how Marseille's economic environment is developing.**

Widespread optimism amongst: • 86% of regional companies • and 77% of the companies from North Africa.**

Euroméditerranée: reference "Premium" rental rates on the scale of the city.

* Behind Lyon's Part Dieu market ** Source: AGAM (Urban Planning Agency of the Marseille Metropolitan Area), Dynamiques Métropolitaines Source: CBRE Part 2: Investment

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Characteristics of the investment market

A favourable tertiary investment market in 2014 BREAKDOWN OF COMMITMENTS BY TYPE OF ASSET IN 2014

Healthcare Light 4% industrial & logistics 20%

AMOUNT INVESTED IN OFFICES

350 300 250

330 300

320 270

245

150

Retail 10%

240

190

200

Offices 65%

320

300

110

100

95

70

50

60

40 30

20

50

65 50

40

40 35

0 2007

2008

Aix-Marseille

2009

2010

2011

2012

Marseille

2013

2014

Euroméditerranée

•

An amount invested that more than doubled in 2014 in the Bouches-du-Rhône département (logistics, business premises, clinic and tertiary; €220 million in 2013 and €490 million in 2014)

•

Historic tertiary investments reached in Marseille since 2007: • In 2014, office investments amounted to approximately €320 million within the Aix-Marseille metropolitan area (nearly 100% of the total amount invested is located in Marseille).

•

A declining "premium"* rate of return in Euroméditerranée: 5.75%*

•

An investment cycle that has picked up: a record-breaking year for Euroméditerranée since 2007.

€ €

€

Source: CBRE * Well-located properties, leased under normal market conditions; rates partly established on valuers’ estimates

Part 2: Investment

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Characteristics of the investment market

Significant office transactions recorded in the Euroméditerranée district over the past 4 years Year

Programme

Total surface area

Seller

Buyer

2014

Urban Center

3,800 sq.m (copro)

AGIR

Moor Park

Condition

Purchase price

New

€11 million Rate of return: 8%

2014

La Marseillaise

35,000 sq.m

Constructa

CEPAC / CDC

2T2018

€180 million Rate of return: 6% (estimated)

2014

Europrogramme

14,200 sq.m

CBRE Global Investor

Primonial Real Estate Investment Management

2nd hand

€48 million

2012

Balthazar

10,000 sq.m

Caisse d’Epargne

La Mondiale AG2R

New

€47 million

2011

Cap Azur

5,983 sq.m (excluding archives)

BNP Paribas immobilier Promotion IE

La Française AM

New

€21 million

2011

Grand Large

13,840 sq.m

IVG

Foncière Massena

2nd hand

€54 million

2011

Espace Gaymard

10,600 sq.m

Union Investment

PERIAL (Scpi PF02)

2nd hand

€42 million

2011

MSquare

8,750 sq.m

REAL IS

New

€35 million

TMW Pramerica

Reinvestors Source: CBRE Part 2: Investment

32

MIPIM 2015

CBRE

Tertiary market analysis

Main new office developments in the Euroméditerranée district

2018: La Marseillaise (35,000 sq.m)

2017 and later: Allar Block (30,000 sq.m)

2017: Hermione and Floréal at Euromed Center (24,163 sq.m)

2016: Calypso at Euromed Center (9,721 sq.m)

2017

2017: Euromed Station (13,590 sq.m)

2016

2015: Astrolabe at Euromed Center (14,000 sq.m)

Part 2: Future supply

2017: Block 3C Nord (8,200 sq.m)

2016: Les Balcons des Arts (1,250 sq.m)

2017: Block 3C Sud (7,411 sq.m)

2018 and later

2018: Desbief: (6,000 sq.m)

2017: Boulevard des Dames (8,000 sq.m)

2015

33

MIPIM 2015

CBRE

Tertiary market analysis

Evolution in terms of new office supply: The supply within the Euroméditerranée district is gathering momentum CERTAIN AND LIKELY EVOLUTION OF THE NEW OFFICE SUPPLY (SQ.M)

120 000

Approximately 75% of Marseille's new office supply for 2015 will be located within the Euroméditerranée district.

100 000 90 600 80 000

60 000

Within the next 3 years, more than 85% of Marseille's new office supply will be located within the Euroméditerranée district

40 000 20 500

20 000

11 000 0 2015 Marseille

2016

2017 et +

Euroméditerranée

Source: CBRE Part 2: Future supply

34

MIPIM 2015

CBRE

Tertiary market analysis

Euroméditerranée: a record-breaking year in 2014 EUROMÉDITERRANÉE'S MAJOR ASSETS A market considered by investors to be the 2nd largest tertiary investment hub behind La Part Dieu (Lyon) City centre location with an excellent transport network (international airport, maritime terminal, TGV & TER trains, Metro, Tramway, Buses) The sector benefits from an existing supply and ambitious programmes of nearby retail (Rue de la République, Terrasses du Port, Voûtes de la Major, Les Docks) and cultural infrastructures (MuCEM, Villa Méditerranée, FRAC, Regards de Provence Museum etc.)

Recent property stock: almost all buildings are less than 10 years old

Low vacancy rate

Recent extension of the scope, making it possible to continue developing a tertiary supply adapted to the evolving demand of investors and users

2014: A HIGHLY FAVOURABLE YEAR FOR EUROMÉDITERRANÉE Take-up: record-breaking year for Euroméditerranée which represents approximately 60% of Marseille's total take-up

Vacancy rate < 2% for new properties in the central business district of La Joliette, Euroméditerranée.

Within the next 3 years, more than 85% of Marseille's new office supply will be located within the Euroméditerranée district.

Euroméditerranée is the reference sector for premium rental rates at €300 excl. VAT excl. charges/sq.m/year.

Investments: a record-breaking year for Euroméditerranée since 2007.

A declining premium rate of return in Euroméditerranée: 5.75%

Part 2: Tertiary

35

MIPIM 2015

CBRE

Comparative analysis of the tertiary market (comparable regional cities)

Immediate supply on an international scale (in thousand sq.m)

Take-up on an international scale (in thousand sq.m)

600

1 800 1 600

500

1 400 400

1 200 1 000

300

800 600

200

400 100

200 0

0

2009

2010

2011

2012

2013

2014

Over the past 6 years, Marseille has managed to keep its stock of vacant surface areas under control

2009

2010

2011

2012

2013

2014

Marseille: low but stable transaction volumes due to the restricted supply Source: CBRE

Part 2: Comparison

36

MIPIM 2015

CBRE

Comparative analysis of the tertiary market (comparable regional cities)

Theoretical time required to sell the property stock (in years)

Vacancy rate on an international scale

IMMEDIATE SUPPLY/TAKE-UP RATIO (ANNUAL AVERAGE OVER THE 2008-2014 PERIOD)

AVERAGE VACANCY RATE 2008 – 2014

4

25% 3

20%

2

15%

10% 1

5%

0

0%

Marseille: office stock sold in 2 years over the 2008- 2014 period (average for the sample examined: 3 years)

Marseille has the 3rd lowest vacancy rate on average over the 2008 - 2014 period Source: CBRE

Part 2: Comparison

37

MIPIM 2015

CBRE

Comparative analysis of the tertiary market (comparable regional cities)

Future new office supply on an international scale (in thousand sq.m)

"Premium" rate of return on an international scale

FUTURE NEW OFFICE SUPPLY LOOKING FORWARD TO 2016

2008 – 2014

450

9%

400

8%

350

7%

300

250

6%

200

5% 150

4% 100

3%

50 0

Barcelone

Marseille, a secure market (low vacancy rate and rise in market rental values), proposes attractive rates of return.

Hambourg

Lille

Lyon

Marseille

Milan

Manchester

Toulouse

The shortage of new office supply will continue in the medium term.

Source: CBRE Part 2: Comparison

38

MIPIM 2015

CBRE

Part 3

Analysis of the retail market

Retail market analysis

A steadily increasing number of retail units within the Euroméditerranée district IN MARSEILLE • • • • • •

HYPER CITY CENTRE

14,600 retail units 1.1 million sq.m of sales area 46% of the department's retail premises Catchment area covers a population of 1.6 million Turnover: €3.8 billion Primark has chosen Marseille for its 1st French branch.

• 4,800 retail units, of which 18% are national /international retail brands • €600 million turnover • Number of stores has doubled in 10 years • Increased footfall (+11% between 2008 and 2013)

EUROMEDITERRANEE : A GROWING OFFER WITH NEARLY 700 STORES (LOCAL, MASS MARKET AND LUXURY)

• Les Terrasses du Port opened in May 2014 with 190 stores and restaurants including the region’s first branches of UNIQLO and SKETCHERS, and the first new PRINTEMPS to be opened outside of Paris in 32 years (6,000 sq m). The following brands are also present: KUSMI TEA, PUYRICARD, MICHAEL KORS, PELLEGRIN & FILS, PYLONES, PANDORA, BERENICE, HUGO BOSS, CARMEN STEFFENS, DESIGUAL, THE KOOPLES, LITTLE MARCEL, MAJE, SUPERDRY, COMPTOIR DES COTONNIERS, YVES ROCHER, CITADIUM, GUESS, QUICKSILVER, DALLOYAU, LE ROY RENÉ, MASMOUDI, etc. • Les Halles de la Major opened in September 2014 in the Voûtes de la Major: France’s second biggest retail complex located under a historic monument, after the Carrousel du Louvre.

Part 3: Retail units

40

MIPIM 2015

CBRE

Retail market analysis

Retail: an attractive market in terms of investment The retail market manages to stand out in Marseille due to significant transactions like Les Voûtes de la Major in 2012 and the former Virgin megastore in 2014. Large-scale operations include the Terrasses du Port, opened in May 2014, and other projects currently under construction such as Le Prado or the fitting out of the ground floor of Les Docks Marseille.

RECENT INVESTMENT REFERENCES (RETAIL) IN MARSEILLE Date

Address

Buyer

2014

Boulevard Michelet

Klépierre (60%) &

Type of retail unit

Surface area

Price

Miscellaneous

Shopping centre

23,000 sq.m

Confidential

Available 2nd semester 2017

Carrefour (40%)

2014

Avenue de la Canebière

Fiducial

High street shop

1,000 sq.m

>€2 million

100% leased, 6 years fixed term 6.75% rate

2014

Rue Saint Ferréol (former Virgin)

Gérard Hibert Holding

High street shop

5,000 sq.m

€20 million (estimated)

100% vacant

2012

Voûtes de la Major

Midi Patrimoine

Shopping centre

7,200 sq.m

€25 million (estimated)

Off-plan purchase (2nd quarter of 2014)

2012

Rue Euthymenes Rue Fortia - Quai Rive Neuve

Adyton

High street shop

800 sq.m

NC

100% leased

2012

Rue de Rome

SCPI Immorente

High street shop

90 sq.m

€0.63 million

100% leased 5.44% rate

2011

Rue Saint Ferréol

Shamrock Marseille

High street shop

4,706 sq.m

Confidential

100% leased 5.50% rate

2011

Rue Saint Ferréol

Société Immobilière et Financière Euro Méditerranée

High street shop

2,000 sq.m

€15 million (estimated)

100% leased

41

Source: CBRE Part 3: Retail units

41

MIPIM 2015

CBRE

Retail market analysis

Retail: a broad spectrum of rental values

Marseille has undertaken a large number of renovation and district upgrade projects:  Speculative launch of 2nd part of Rue de la République will create new opportunities. A 4 star hotel belonging to the NH Hotels group will open at the corner of Boulevard des Dames.  Rue de Rome will be fully upgraded when the new tram service is launched in spring 2015.  La Canebière is gradually being revamped. The 4 star hotel and gastronomic brasserie due to open by 2017 should give the street a more upmarket image. Also, Monoprix is to lease 1,000 sq m at the top of La Canebière.

MARSEILLE RENTAL VALUES

Location

Rental values excl. taxes and charges per sq m per year

Main shopping streets

n°1 "Premium"

€1,200 - €1,700

Rue St Ferréol, Rue Paradis

n°1

€600 - €1,200

Rue de la République, Rue Grignan

n°1 b

€400 - €650

Rue de Rome, La Canebière

n°2

€350 - €450

Rue Vacon

Shopping centre

€700 - €1,500

La Valentine, Les Terrasses du Port

Outskirts

€200 - €300 €600 - €900

Plan de Campagne Avant Cap *Source: CBRE

Part 3: Retail units

42

MIPIM 2015

CBRE

Retail market analysis

Retail: Euroméditerranée's broad offering Les Terrasses du Port

Les Voûtes de la Major

Rue de la République

Part 3: Retail units

43

Les Docks

MIPIM 2015

CBRE

Retail market analysis

Opening of Euroméditerranée's Terrasses du Port in May 2014

LE PRINTEMPS: 32 YEARS AFTER OPENING THEIR LAST STORE OUTSIDE PARIS, THE COMPANY CHOOSES EUROMÉDITERRANÉE'S TERRASSES DU PORT AS THEIR NEW SITE.

• 61,000 sq.m (FLG); 141 chains (excluding food chains) consisting of 86% national and international chains (including Printemps) • Uniqlo: 1st store in the region • 3,000 parking spaces • 2,000 people recruited (90% unlimited-term contracts)

• Sold in 2010 • €450 million (total investment) • 13 million visitors in the 1st year and 15 million expected per year for the next two years • Turnover of €350 million (planned) • Customer satisfaction rate: 96%

Source: CBRE Part 3: Retail units

44

MIPIM 2015

CBRE

Retail market analysis

Inauguration of Euroméditerranée’s Les Halles de la Major in September 2014 LES VOUTES DE LA MAJOR: FRANCE’S SECOND BIGGEST RETAIL COMPLEX LOCATED UNDER A HISTORIC MONUMENT, AFTER THE CARROUSEL DU LOUVRE. Voûtes de la Major food service team , winner of the "GESTE D'OR" award in 2014 during the Heritage Show at the Louvre

• 7,200 sq m devoted exclusively to Provencal specialities (Fragonard, L’Espérantine, etc.) • Les Halles de la Major : 700 sq m and 12 stalls, devoted exclusively to the catering industry • 750 parking spaces nearby • 2,600 sq m of hanging gardens • 25 m wide pavement between the shop windows and the coast road

• 100 to 150 jobs expected • Investment: €25 million • 80% of the premises sold or leased

Source: CBRE Part 3: Retail units

45

MIPIM 2015

CBRE

Retail market analysis

More examples of new and future Euroméditerranée developments

RETAIL PREMISES ON RUE DE LA REPUBLIQUE ARE GRADUALLY FILLING UP

RUE DE LA RÉPUBLIQUE (ULTIMATELY) • 1.2 km, 80,000 sq m • Over 1,800 public parking spaces

• €500 million investment • 130 retail units in operation • Over 60% sold or leased

Source: CBRE

Part 3: Retail units

46

MIPIM 2015

CBRE

Retail market analysis

More examples of new and future Euroméditerranée developments OPENING OF DOCKS MARSEILLE® IN THE 2nd QUARTER OF 2015

LES DOCKS MARSEILLE (RETAIL OUTLETS) 2015

• 15,000 sq.m renovated commercial space, 80 businesses • Dominated mainly by local and national chains • 45% of space dedicated to catering and food, 35% to boutiques and services, 20% to culture and leisure spaces • 1,000 nearby public parking spaces

• €50m in investment • 40% sold • 1.47 million potential customers within the catchment area • 60% of client base consists of Euroméditerranée residents or staff, 40% consists of tourists or other Marseille residents.

Source: CBRE Part 3: Retail units

47

MIPIM 2015

CBRE

YOUR CONTACTS

Real Estate & Business Development Department

Valuation

Jean-François ROYER, Director Peter RAWLS, Investor Relations Project Manager Sarah Bony, Project Manager for Companies

Pascale FAIVRET FASQUELLE, Regional Director Aude BERTHOLIER, Real Estate Expert

Tel.: +33 (0)491 144 538

Tel.: +33 (0)496 114 622

Email: jean-franç[email protected] Email: [email protected] Email: [email protected]

Email: [email protected] Email: [email protected]

Euroméditerrannée Urban Development Authority

Agency

10 place de la Joliette Bâtiment Les Docks BP 52620 F-13657 Marseille Cedex 02

Philippe LE NORMAND, Regional Director Tel.: +33 (0)496 114 619 Email: [email protected]

www.euromediterranee.fr http://www.cbre.fr