Corio closed a 100 million loan with ING Real Estate Finance with a duration of 2 year. Corio signed the contract with Gerard Groener as CEO. Corio sold 13 retail properties in the Netherlands for 78.6 million.
Loan
Corio closed a 100 million loan with ING Real Estate Finance with a duration of 2 year and an interest rate of 3 months Euribor with 250 bps spread. The proceeds are used for general corporate financing purposes.
Contract
As announced in the press release of 3 December 2007 the Supervisory Board of Corio N.V. has appointed Mr. Gerard Groener as Chairman of the Management Board (Chief Executive Officer, CEO) as from 1 May 2008. Mr. Groener has been a member of the Management Board for two years (from 1 May 2006) and has been reappointed after notification of the Annual General Meeting of Shareholders of 29 April 2008. Mr. Groener is appointed as CEO for a period of 4 years. Mr. Groener has by now 21 years experience in the real estate sector. Groener's career started in 1985 working for Akzo in several functions, ultimately as acquisition manager real estate for the Akzo pension fund until 1993. Between 1993 and 1996 he worked for Van Wijnen as a project developer. He became Managing Director of Corio Nederland Retail after the merger in December 2000 between VIB andWinkel Beleggingen Nederland (WBN), where he started in 1996 to join the Management Board ofWBN in 1998. In May 2006 Mr. Groener joined the Management Board of Corio N.V. and as per 1 May 2008 he has been appointed as CEO of Corio N.V. In addition, Mr. Groener is chairman for the NRW (Dutch council of shopping centres) and is Chairman of the Dutch district council of ULI (Urban Land Institute) Netherlands.
Mr. Groener will receive a fixed gross annual salary of 350,000, including holiday allowance. In addition, he is entitled to a short-term bonus of 40% and a long-term bonus of 60% of the gross annual salary when his performance is 'at target'. Excellent performance can be rewarded with a bonus multiple of maximum 1.5. The contribution that will be made available by Corio towards an individual pension is set at 20% of the gross annual salary. The remuneration ofMr. Groener is in accordance with the remuneration policy as adopted by the shareholders meeting of 29 April 2008. In case of dismissal, Corio will indemnify Mr. Groener with a minimum amount of the last gross annual salary.
With this announcement Corio fully complies with the Tabaksblat Code regarding the remuneration of its Management Board members.
Sale of retail properties in the Netherlands
At year end 2008 Corio sold 13 properties to various investors for a total amount of 78.6 m, this is approximately 4% below year end 2007 book value (plus investments in the course of 2008). The average NIY (theoretical rent for next year minus operating expenses divided by sales price) of the sold portfolio is 6.3%.
Source: Hugin
