Icade, the real estate subsidiary of Caisse des Dépôts, wants to develop more “mixed” real estate projects, combining several types of activity, after selling its health assets, according to its five-year strategic plan unveiled on Monday.
The group, currently a tertiary real estate and land developer (mainly offices), also intends to diversify by developing business premises (schools, TV studios, etc.), student residences and data centers.
In this, it follows several of its competitors, such as Nexity or Altarea, which, faced with a historic crisis in new real estate, are developing outside their core business.
“It is not an end in itself to diversify, but the city is becoming more and more mixed,” explained the group’s general director, Nicolas Joly, to AFP.
Having reviewed its office portfolio, Icade estimates that 86% of it is suitable for current uses, particularly proximity to transport.
For the remaining 14%, it plans to either sell them or reconvert them with an emphasis on “demonstrators” illustrating its strategy, an activity in which it intends to invest some 150 million euros over five years.
“It’s an accepted choice to say that as these are non-strategic assets, we will favor demonstrators,” explained Nicolas Joly.
In 2023, the group, which began the sale of its subsidiary operating health establishments, achieved financial performance slightly above its expectations.
Its net current cash flow, the profitability indicator it uses to set its objectives, amounted to 350.6 million euros, and 232.6 million (3.07 euros per share) without taking into account the the contribution of the health property company, sold at the beginning of July.
Icade was counting on a range between 2.96 and 3.05 euros per share, excluding health property.
The sale of this to the investor Primonial REIM enabled it to collect 1.4 billion euros, cash which it invested and which enabled it to improve its results.
In 2024, it will offer its shareholders a dividend of 4.84 euros, including a compulsory exceptional payment linked to this sale.
The remainder of the sale, and other transfers planned between now and 2028, must be used, in addition to dividends, to finance its debt reduction and investments.
As of December 31, its net debt amounted to 3 billion euros.