COLONIAL ENREGISTRE UNE HAUSSE DU BENEFICE NET AU PREMIER SEMESTRE 2007, A 316,4 MILLIONS D'EUROS

Le bénéfice opérationnel avant intérêts s'élève à 569,1 millions d'euros, stimulé par l'évolution favorable de l'activité de la location.

Les résultats du premier semestre 2007 de Inmobiliaria Colonial reflètent un résultat net attribuable de 316,4 millions d'euros. Le chiffre d'affaires s'élève à 358,6 millions d'euros. Le bénéfice opérationnel avant intérêts s'élève à 569,1 millions d'euros, principalement stimulé par l'activité de la location (revenus des rentes, ventes d'actifs et revalorisation des immeubles d'investissement).

It is worth highlighting a significant 4.6% like-for-like advance in rental income, to €146.6 M. Some 57% of this (€83.3 M) was generated in France through SFL's contribution and the remainder (€63.3 M) in Spain. In June 2007 the rental property portfolio covered almost 1.5 M m2, located mostly in Paris, with 500,000 m2, and Barcelona and Madrid with 475,000 m2 each.

These healthy results are thanks to the composition of Inmobiliaria Colonial's assets — focused on rentals — given the healthy momentum experienced by the markets where the Company is present and, above all, its locations in the best districts of Paris, Barcelona and Madrid. These have enabled it to record a 97.7% occupancy rate, in excess of the broad market average. This is a situation particularly visible in Madrid, where Inmobiliaria Colonial's office properties are seeing 99.5% occupancy, against the market's 93.5% average.

The total asset value of Inmobiliaria Colonial equals €11,149 M. The Company's business model has enabled its real-estate property value to reach €9,636 M, of which most (73%) is in the rental business, which is valued at €6,989 M (85% in offices). On a comparable basis, the value of rental assets has increased by 8.8%, an expansion that fed through into a €461.4 M asset revaluation gain from both France (€274.1 M) and Spain (€187.3 M). Moreover, it is worth pointing out the 9% improvement in office values on a comparable basis, with advances in the three markets where the Group is present. The residential-development business, meanwhile, is valued at €2,647 M.

The net asset value (NAV) per share is €2.87, 11% more than in December 2006.

Investments in the first half equalled €402.2 M, of which €277.7 M corresponded to building purchases and the implementation of works for developing rental projects, among which it is worth underlining the Aqua Mágica retail centre in Palma de Mallorca, plus the Paul Cezanne building and the winning of the T8 project in Paris.

In addition, revenues from asset sales totalled €86.7 M (7.1% in excess of the December 2006 market valuation), which were entirely from properties in Madrid that due to their size, use or location do not dovetail with the Group strategy.

The residential-development and land business's contribution margin to the half-year results was €5.4 M. The Company's land bank totals around 3.5 M m2, most of which is concentrated in the primary residence sector (85%) in the metropolitan areas of Madrid, Barcelona and Seville, with the rest corresponding to land for services and industrial use.

These figures reflect the Company's commitment to focusing its activity on the more stable property business, enjoying recurrent earnings generation.

RIOFISA TAKEOVER BID

On 12 April, Inmobiliaria Colonial submitted a public tender offer for 100% of Riofisa to Spain's National Securities Market Commission (Comisión Nacional del Mercado de Valores, or "CNMV"), for which the CNMV gave the go-ahead at end-June. The acceptance period began on 28 June and ends on 30 July. This is a cash offer at €44.31 per share, implying a €2,000 M valuation for the target. Riofisa Holding SL — the main shareholder in Riofisa with 50.001% — previously signed a commitment to accept the bid.

On 17 July, the CNMV gave the green light to the capital increase prospectus submitted by Inmobiliaria Colonial, to increase share capital by €709.5 M through the issue of 228,885,125 new shares at €3.10 each (€0.12 face value plus a €2.98 share premium).

In the issue, Company shareholders can subscribe to one new share for every six they have. The preferential subscription period began on 19 July and ends on 2 August.

With the capital increase Inmobiliaria Colonial completes its plans to finance the Riofisa acquisition. The proceeds are also intended to cut the Company's €7,200 M long-term debt. The major Company shareholders with seats on the Board have already signed their commitment to participate, once again demonstrating their full support for the Group's business plans.

The Riofisa acquisition should enable Inmobiliaria Colonial to round out its property business model with the development and operation of retail centres. The purchase is in line with the Company's strategy of including among its properties high-quality assets that ensure a stable source of revenues, to form a solid Company safeguarded from business cycles and generating value for its shareholders.

Contact:

Pilar Suárez-Carreño Tel.: + 34 91 575 45 05 [email protected]