Covivio, formerly Foncière des Régions (), is a European investment and development company with business activities encompassing office

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

(46%), hotels (26%) and residential accommodation (26%). Europe's fourth-largest

real estate investment trust A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping cente ...

(REIT), its portfolio is worth an estimated €23 billion. Two thirds of the portfolio is divided between

Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...

Berlin Berlin ( , ) is the capital and largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's most populous city, according to population within city limits. One of Germany's sixteen constitue ...

and

Milan Milan ( , , Lombard: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city proper in Italy after Rome. The city proper has a population of about 1.4 million, while its metropolitan city h ...

, with an occupancy rate of 98.1%. Covivio's strategy is to develop partnerships with cities and corporations. The group has a European development pipeline of €6 billion (€1.6 billion of committed pipeline at end 2018) to support its growth plans.

History

Foncière des Régions is a

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

of real estate investment (

REIT A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping ce ...

) companies that own residential and commercial properties in 8 countries (mostly in Europe). Its business comes from the rental and leasing of properties (including hotels and car lots), over 70% of which is office space in France and Italy (in 2009 vacancy rates were at 5.3% in France, in other major markets like Rome, Italy rental income was lower because office space use was halved). Its biggest clients are major companies, the largest of which is

France Telecom Orange S.A. (), formerly France Télécom S.A. (stylized as france telecom) is a French multinational telecommunications corporation. It has 266 million customers worldwide and employs 89,000 people in France, and 59,000 elsewhere. In 2015, ...

, which rented half of Fonciere's office space in France (about 1 million m² (though its share of rental income was 51% in 2009 compared to 60% in 2008). Other major customers are

Telecom Italia Gruppo TIM, legally TIM S.p.A. (formerly Telecom Italia S.p.A.), also known as the TIM Group in English, is an Italian telecommunications company with headquarters in Rome, Milan, and Naples, (with the Telecom Italia Tower) which provides fixe ...

and Electricite de France and IBM. The company has a 15% interest in France's biggest business park developer,

Altarea SCA Altarea SCA, trade name, (trading as Altarea Cogedim) is a French company dedicated to the Real estate development, development and Real estate investing, investment in real estate, especially shopping centers. Its headquarters are located in Fra ...

. Most properties are under its control; however, there are also about 60 properties that it has a minor stake in (interests in them range from 25 to 38 percent). Widely recognized properties include one of France's tallest skyscrapers

Tour Gan Tour CB21, formerly Tour Gan, is an office skyscraper located in La Défense, the high-rise business district situated west of Paris, France. It was designed by celebrated American architect Max Abramovitz. Built from 1972 to 1974, the tower is ...

(also known as CB21) and Carré Suffren in Paris. Other assets include parking lots (Parcs GFR), retirement homes, warehouses (Fonciere Europe Logistique SCA, Fonciere Developpement Logements SA) hotels, medical facilities, and business parks (15% of France's largest developer Altarea SA). *In August 2010 in a joint venture with France's largest bank Credit Agricole, it acquired 48 European hotels from hospitality company Accor. The deal was worth 367 million euro. *After acquiring 35% of Italian real estate company

Beni Stabili is a Japanese R&B singer, who debuted in 2004 under the Avex Trax label. In 2008, Arashiro left Avex Trax and transferred to Universal Music Japan where she started to perform as simply Beni (stylized as BENI). She was initially best known fo ...

(public on the Milan stock exchange since 1999) from Italian company Delfin (Delfin and Batipart are Fonciere's largest shareholders) it purchased the rest of it in 2007. It was Fonciere's single largest investment in Italy bringing its asset portfolio there to €4 billion. Altogether the company had a market value of between €3.5 and €3.9 billion in 2010. Fonciere des Regions was created in 1963 as Garages Souterrains de Metz an operator of underground garages/parking lots. Most growth happened in the 21st century beginning with key acquisitions and leaseback agreements with EDF, AXA, AGF between 2000 and 2004. In 2000 it acquired housing developer Sovakle. In 2004 the division dealing with hotels, Foncière des Murs was formed. Fonciere des Regions's largest shareholder is currently Italian Delfin (the holding company of Italian billionaire

Leonardo Del Vecchio Leonardo Del Vecchio (22 May 1935 – 27 June 2022) was an Italian billionaire businessman, the founder and chairman of Luxottica, the world's largest producer and retailer of glasses and frames, with 77,734 employees and over 8,000 stores. At t ...

) with a nearly 30% stake. In 2018, Foncière des Régions became Covivio.

Operations

Through subsidiaries Fonciere operates in France, Italy, UK, Luxembourg (Batisica, FDR Luxand and 67% ownership of CCP Duisberg and GSS III Partners), Germany (EM), Belgium (NC), USA (73% of Red Sail Real Estate Holding USA Inc. which is based in LA, NYC, and Chicago) and Portugal. In 2010 rental income (€789.6 million consolidated up on the year due to French office acquisitions, of which €521.3 million represented the group share which was down slightly because of a lowered interest in Beni Stabili) came mostly from the offices business segment (totalled 79% 54% in France and 25% in Italy) but also from logistics operations (11%) and the service sector (10%). Total revenues increased only in the service sector (4.4% due to 7% higher Accor income) and Italian offices sector (up 4.3%). Vancancies affected results from the offices business in France. Divisions (these three are separate publicly traded companies) in order of size are Foncière Développement Logements controls all of the company's French (in Ile-de-France) and German (Bavaria, North Rhine-Westphalia, Lower Saxony) residential properties which include apartments and condominiums. SCI Marceau and Triname and Garonor France III are among numerous subsidiaries managed through the division. Foncière des Murs (25% interest) is a SIIC that provides hospitality services in addition to its function as landlord of hotels and restaurants. Foncière Europe Logistique is the subsidiary that controls assets relating to

Logistics Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of ...

in France and Germany.

Activities in Europe

Covivio came into being in 2018 as the new name for Foncière des Régions, a French company set up in the early 2000s. The Covivio identity encompasses all the group's operations in Europe. *

Offices An office is a space where an organization's employees perform administrative work in order to support and realize objects and goals of the organization. The word "office" may also denote a position within an organization with specific dut ...

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

and

Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...

following the merger in December 2018 with its Italian subsidiary Beni Stabili * Residential accommodation in

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

via its subsidiary Covivio Immobilien (the new name for Immeo Wohnen), a

real estate investment Real estate investing involves the purchase, management and sale or rental of real estate for profit. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor. Some investors actively ...

company specialised in the ownership and development of residential assets. *

Hotels A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...

in Europe via its subsidiary Covivio Hotels (the new name for Foncière des Murs). Specialised in investing in hotel

properties Property is the ownership of land, resources, improvements or other tangible objects, or intellectual property. Property may also refer to: Mathematics * Property (mathematics) Philosophy and science * Property (philosophy), in philosophy and ...

, Covivio Hotels was established in 2004 and is now Europe's leading hotel property investor. Lastly, in 2018, Covivio founded Welli, a dedicated flexible offices and

co-working Coworking is an arrangement in which workers for different companies share an office space. It allows cost savings and convenience through the use of common infrastructures, such as equipment, utilities and receptionist and custodial services, an ...

offering.

Positioning

Covivio invests in, develops and manages

office buildings An office is a space where an organization's employees perform administrative work in order to support and realize objects and goals of the organization. The word "office" may also denote a position within an organization with specific dut ...

, hotels and housing in Europe and also creates services specifically for these spaces, tailored to its customers. These include concierge services,

co-living Co-living is a residential community living model that accommodates three or more biologically unrelated people living in the same dwelling unit. Generally coliving is a type of intentional community that provides shared housing for people with si ...

and

. In 2018 Covivio announced developing a mixed-use urban complex of offices,

spaces, housing, services and shops on Berlin's

Alexanderplatz () ( en, Alexander Square) is a large public square and transport hub in the central Mitte district of Berlin. The square is named after the Russian Tsar Alexander I, which also denotes the larger neighbourhood stretching from in the nort ...

. Construction work has not yet begun. All of Covivio's new developments are certified ( HQE, LEED,

BREEAM BREEAM (Building Research Establishment Environmental Assessment Method), first published by the Building Research Establishment (BRE) in 1990, is the world's longest established method of assessing, rating, and certifying the sustainability of ...

, etc.) and the whole portfolio has embarked on a process of

ecodesign Ecological design or ecodesign is an approach to designing products and services that gives special consideration to the environmental impacts of a product over its entire lifecycle. Sim Van der Ryn and Stuart Cowan define it as "any form of d ...

. In the area of CSR, Covivio, which has 922 staff in Europe, has also taken steps to promote

gender equality Gender equality, also known as sexual equality or equality of the sexes, is the state of equal ease of access to resources and opportunities regardless of gender, including economic participation and decision-making; and the state of valuing d ...

within the group through the Ex-aequo programme, and to support young students from disadvantaged backgrounds in their schooling and their career, in partnership with the young people's charity Article 1. Covivio features in the

EPRA The European Public Real Estate Association (EPRA), is a non-profit association representing Europe's publicly listed property companies. It is run by an independent Board of Directors chaired by Pere Viñolas Serra. History From its formation ...

and GPR 250 benchmark indices of European property companies and has received the EPRA BPR Gold Award for its financial and

sustainable development Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The des ...

reporting, a

Carbon Disclosure Project The CDP (formerly the Carbon Disclosure Project) is an international non-profit organisation based in the United Kingdom, Japan, India, China, Germany and the United States of America that helps companies and cities disclose their environmental im ...

rating of A and a Green Star in the GRESB (Global Real Estate Sustainability Benchmark) rankings. It also appears in the FTSE4 Good, DJSI World and Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext® CDP Environment France EW, Oekom, Ethibel and Gaïa ethical and ESG indices.

Activities and areas of expertise

Office property and co-working with Wellio

Covivio has an office portfolio worth €10.6 billion in

and

, amounting to a floor area of 3.6 million m²11. These assets achieve an occupancy rate of more than 97%. In France, Covivio designs projects for new and refurbished offices in the Greater Paris region and in major regional cities such as

Lyon Lyon,, ; Occitan: ''Lion'', hist. ''Lionés'' also spelled in English as Lyons, is the third-largest city and second-largest metropolitan area of France. It is located at the confluence of the rivers Rhône and Saône, to the northwest of t ...

, Bordeaux,

Marseille Marseille ( , , ; also spelled in English as Marseilles; oc, Marselha ) is the prefecture of the French department of Bouches-du-Rhône and capital of the Provence-Alpes-Côte d'Azur region. Situated in the camargue region of southern Franc ...

Toulouse Toulouse ( , ; oc, Tolosa ) is the prefecture of the French department of Haute-Garonne and of the larger region of Occitania. The city is on the banks of the River Garonne, from the Mediterranean Sea, from the Atlantic Ocean and from Par ...

and

Montpellier Montpellier (, , ; oc, Montpelhièr ) is a city in southern France near the Mediterranean Sea. One of the largest urban centres in the region of Occitania (administrative region), Occitania, Montpellier is the prefecture of the Departments of ...

. Covivio's investments in

are focused on the office market in

, which accounts for more than 70% of its Italian portfolio. In Milan, Covivio is developing the Symbiosis project, designed jointly with the city authority, which may eventually house 125,000 m² of offices and services. In 2019, Covivio will deliver six

in France and Italy and will continue work on several other projects. Covivio is developing co-working spaces with its Wellio subsidiary, established in 2018. Four sites were open at the start of 2019 (three in Paris and one in

), comprising a total floor area of more than 12,000 m². Another Wellio site will open its doors in Bordeaux in 2019, along with a further space on Milan's Via Dante.

Hotel infrastructure with Covivio Hotels

The hotel business makes up 26% of Covivio's portfolio. It has some 45,000 rooms in France, Germany, the United Kingdom,

Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...

Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...

and the

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

. In 2018, Covivio paid €895 million to acquire 12 high-end hotels in major cities in the United Kingdom, including

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popul ...

Edinburgh Edinburgh ( ; gd, Dùn Èideann ) is the capital city of Scotland and one of its 32 Council areas of Scotland, council areas. Historically part of the county of Midlothian (interchangeably Edinburghshire before 1921), it is located in Lothian ...

and

Manchester Manchester () is a city in Greater Manchester, England. It had a population of 552,000 in 2021. It is bordered by the Cheshire Plain to the south, the Pennines to the north and east, and the neighbouring city of Salford to the west. The t ...

. As another example, Covivio is providing support to the Meininger hotel brand in its European development, with projects in

Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the States of Germany, German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the List of cities in Germany by popu ...

and

. The group is also a partner of the

Motel One Motel One is a German low-budget hotel chain headquartered in Munich. It operates properties in eleven European countries as well as one hotel in New York City. Few of the company's hotels use their upscale subsidiary brand The Cloud One instead. ...

brand, which opened its first hotel in France in Paris in 2018

Residential accommodation in Germany

Covivio has a residential portfolio of €5.8 billion in

via Covivio Immobilien. This equates to more than 41,600 housing units, mainly in

. The group has set up a development activity and is planning new projects worth €700 million. In the German residential sector, Covivio provides furnished apartments, serviced housing and

accommodation in

. A further 3,000 rooms will be added by 2022 in vibrant districts of the city.

Sites in Europe

Covivio is a European group based predominantly in

, the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

and

. At the end of 2018, the group had invested €1.9 billion in the major European cities. The group employs 922 staff in Europe.

Management

*Christophe Kullmann, chief executive officer of Covivio *Olivier Estève, Deputy CEO *Dominique Ozanne, Deputy CEO *Jean Laurent, chairman of the Board of Directors

References

External links

Covivio website
* Wellio website
Covivio.immo
{{CAC Mid 60 Real estate investment trusts Companies listed on Euronext Paris