MRM - 2018 Registration document

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Information on M.R.M.’s activities

Presentation of the Company

Between 2013 and 2019, the Group sold a total of nine office buildings, for a cumulative amount of €132.3 million excluding transfer taxes, 9.8%more than the properties’appraisal values at 30 June 2013 taking into account CAPEX invested over the period. The Group’s strategy notably involves enhancing the attractiveness of its assets and exploiting their potential for value-enhancement by refurbishing them and upgrading them to meet the best market standards, by bringing their rental

revenues back into line with market rates and undertaking extensions where possible. The Group has undertaken a major investment programme aimed at enhancing the value of its current retail asset portfolio. It represents a total projected investment of €35.5 million, of which €34.0 million was already invested as of 31 December 2018. The Group is also looking at opportunities to acquire or dispose of retail assets as part of a dynamic approach to portfolio management.

1.4.2 The real estate market in 2018 and the retail segment

France Investment Source: CBRE Research, Q4 2018 “Market View – France Investment”.

markets in order to minimise risk. Investors have prioritised large volume secure prime assets in excellent locations. More than 60% of investments were for transactions > €100 million, totalling 80 transactions. Transactions < €25 million decreased significantly (390 versus 553 in 2017), due to assets renewal difficulties. Above all, investors’risk aversion was palpable: 68% of transactions were for core products. Even if prices remain very high, Paris is still by far the target destination for investors. Paris alone concentrates nearly 40% of total investment volume. Paris Centre West, the traditional business district par excellence, is by far in the lead with a total of €8.3 billion invested, including 12 major transactions > €200 million. It is followed by the Western Crescent (€3.9 billion). Although lagging behind in H1, La Défense was able to catch up thanks to the completion of 7 transactions > €100 million. Regional markets also experienced a particularly dynamic H2. Prices for regional assets remain attractive compared with Paris Region prices per sqm, allowing investors to diversify and balance their portfolios. In total, more than €6 billion were invested. Offices’domination Office properties dominate, thanks to the completion of several very large deals. Driven by the need to modernise supply and contained vacancy levels across most markets, off-plan sales accounted for €4 billion, 35% of which were speculative, indicating a clear year-on-year decrease. In fact, investors pursued high lease risk transactions but only in readable locations, which remain highly prized by investors. The share of existing assets to be refurbished has also increased considerably, totalling 11%, versus 4% at the end of 2017.

Ever higher volumes, where will it end?

Exceptional results Thanks to a dynamic international environment fuelled by a persistently attractive rate spread, a favourable yield/risk ratio and an abundance of capital, the French commercial real estate investment market was highly competitive on the European level. The market’s solid fundamentals (depth, transparency, liquidity) were amplified by a clearly improved economic - and therefore leasing - context. This is the result of the return of more solid growth with its positive net absorption (though somewhat dampened by the recent mass demonstrations), as well as a generalised corporate focus on real estate reorganisation, across all sectors. Furthermore, as announced at the beginning of 2018, the return of foreign investors was confirmed, an outcome of the so-called Macron effect as well as of investors taking action and seeking refuge in the wake of major uncertainty currently affecting our closest neighbours. Overall total investment volume once again increased noticeably. As of 1 January 2019, €30.5 billion (+8% year- on-year) were invested. This volume will undoubtedly prove higher in the coming weeks as results come in, but it is already a new absolute record. Q4 was particularly dynamic, with €13 billion invested, i.e., the best quarter performance ever recorded. The French market has recorded its fifth consecutive year of continuous growth since 2013, and 2018 recorded accelerated growth. An measured aversion to risk Although most lease indicators are generally positive, investors have particularly focused on well-established, structured

M.R.M. 2018 REGISTRATION DOCUMENT

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