SOURCE: Société de la Tour Eiffel

July 17, 2008 12:17 ET

Société de la Tour Eiffel : level of trading activity maintained during the first half of 2008

PARIS--(Marketwire - July 17, 2008) - SOCIETE DE LA TOUR EIFFEL : level of trading activity maintained during the first half of 2008

The consolidated six-monthly turnover increased by nearly 10% to 42.7 MEUR up from 38.9 mEUR in 2007, 36.0 and 35.4 MEUR respectively being attributable to rents. This progression is accounted for by acquisitions made since the first quarter of 2007 and the delivery of new, leased, buildings (1.9 MEUR ), the rental indexation on the core portfolio (1.4 MEUR ), allowance having been made for rent reduction due to the disposals in late 2007 and in 2008 (-2.7 MEUR ).

+------------------------+------+------+-----------+
|         (in MEUR )        |  2008|  2007|  2008/2007|
+------------------------+------+------+-----------+
|  First quarter         |  20.6|  17.9|           |
+------------------------+------+------+-----------+
|  Second quarter        |  22.1|  21.0|           |
+------------------------+------+------+-----------+
|  Turnover 1H           |  42.7|  38.9|    + 9.8 %|
+------------------------+------+------+-----------+
|  Of which rental income|      |      |           |
+------------------------+------+------+-----------+
|                        |  36.0|  35.4|     +1.7 %|
+------------------------+------+------+-----------+
+------------------------+------+------+-----------+

Active portfolio development

The company maintained a sustained level of activity throughout the first half of the year in terms of leasing of its existing portfolio and the development of new properties, conforting its investment strategy based on affordable rents and high returns especially pertinent in the current "economic environment"; performance in regional markets was particularly encouraging. Of note were the following:

- 36 MEUR of new acquisitions reflecting current market conditions: 18,000 m(2) of warehouses and offices in Amiens (leased for 9 years firm to Lee Cooper France), 4,000 m(2) of media studios and offices in Saint-Cloud (lease 9 years), 2,750 m(2) of offices being developed in Aix-La-Duranne (Aix-en-Provence) pre let to Schneider Electric on a 6-9 year lease and 5,700 m(2) of offices, light industrial and warehouses in Chartres, to be developed in the heart of "Cosmetic Valley",

- 24,000 m(2) of buildings delivered during the first half year 2008 (27 MEUR ) at Le Bourget (leasing in hand), Nantes-Connemara (2/3 pre let), Châlons en Champagne (pre leased by La Poste), Aix-en-Provence (pre leased, 3 tenants) and Bordeaux/Merignac (25% leased to BNP Paribas),

- 200 MEUR of office developments in hand (80,000 m(2), financed in 2007) of which 50% pre leased. The office developments Domino (Paris Porte des Lilas) and Citizen (Rueil Malmaison), fully leased to Soletanche Bachy, are close to delivery, whereas new construction starts were initiated at Massy for a new 18,000 m(2) built-to-suit for Alstom (9-year fixed lease), and Velizy-Topaz (15,000 m(2) to be developed speculatively, delivery mid 2010).

- lease renewals and new take up on the core portoflio representing 2 MEUR of annual rent for 17,000 m(2), notably Pacifica (2,000 m(2)) in Parc du Millénaire, Montpellier, Socotec (850 m(2)) Saint-Quentin-en-Yvelines, Carlson Wagon Lits (2,000 m(2)) in Parc des Prés, Lille, Mentor Graphics (2,550 m(2)) in Viséo, Grenoble/Montbonnot,

- asset disposals for 92 MEUR during the first quarter 2008, being three properties having either reached maturity or being non strategic reflected the company's active approach to portfolio management. The sale price exceeded the 2007 year end valuation .

" The leasing of our properties remains most satisfactory, with demand holding up surprisingly well, particularly for new or recent quality properties at reasonable rentals. We can even report a slight progression on rents for new buildings whereas for existing properties, they remain stable ", comments Robert Waterland, Managing Director of Société de la Tour Eiffel.

Fondation Société de la Tour Eiffel

The company also announces the positive reaction to the first architectural competition sponsored by its fondation which invites students of French architectural schools to imagine a contemporary edifice on the site of the existing Eiffel Tower. As at 30 June, more than 500 candidates had applied to participate.

Société de la Tour Eiffel will elaborate upon its continued satisfactory trading activity during a presentation of the first half year results on 30th July.

About Société de la Tour Eiffel

A " SIIC " quoted on the Euronext Paris Exchange, the company pursues a strategy focused on the ownership and the development of quality office and business space capable of attracting a wide range of tenants in both established and emerging locations. The company's portfolio stands out in excess of 1.1 billion Euros of assets spread evenly between the Paris area and the regions.

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