Corio's strategy update: full focus on Favourite Meeting Places
December 4, 2012 - London
- Full focus on Favourite Meeting Places (FMP portfolio): Increase quality of portfolio and accelerate income growth
- Reduction of the Traditional Retail Centres (TRC portfolio): lower leverage and recycle capital
- Proposed dividend policy: distribution of 80% - 90% of total direct result
During the Capital Markets Day today in Utrecht, Corio will provide an update on its future strategy. Increasingly conscious of the changing retail and shopping centre environment, Corio wants to ensure it is best positioned to take advantage of future opportunities and dynamics in the industry. Corio has, therefore, decided to split the overall portfolio into FMPs and TRCs. The company decided to further specialize and fully focus on the FMP concept. The TRC portfolio, which represents approximately 20% of Corio's total portfolio value, will be disposed over time. The increased focus on FMPs will lead to a superior quality shopping centre portfolio, enhanced growth opportunities and a more sound capital structure with lower leverage.
Gerard Groener, CEO Corio: "Analysing the market dynamics, Corio sees the need to adapt to the changing retail environment and regards further specialization as key to enable maximizing shareholder value. The favourite meeting place concept links this shareholder value with servicing consumers and integrating CSR. We have undertaken a thorough review of our portfolio and based on this review, we have identified assets that qualify as FMPs or will be able to adapt to the FMP concept. This further specialization will consequently lead to the disposal of the remaining assets."
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Source: Corio NV via Thomson Reuters ONE