Exceptional results for the Socri Limited Group

SOCRI LIMITED held a press conference today to present the real estate group’s 2022 results. This meeting took place in the recently acquired premises of the Gaumont cinema on Place de la Comédie in Montpellier, about a hundred meters from its historic headquarters located in the Polygone office tower. Its General Manager, Pierre-Antoine DESPLAN, received the press for a presentation followed by a Q&A session.

The year 2022 was marked for SOCRI LIMITED, on one hand, by the excellent results of its commercial assets located on the Mediterranean arc (Béziers, Montpellier, Nîmes and Avignon) and, on the other hand, by the effective start of luxury villa production in the USA.

After years marked by the COVID crisis that affected the retail sector from 2020 until the first quarter of 2022, the group performed well and experienced sustained growth. These successes are linked both to its shopping centers, which improved their performance in 2022 compared to the pre-crisis period (average progression of +11% in 2022 turnover vs 2019 in Béziers and Nîmes), and to the validation of its diversification strategy in real estate development in the USA. This development axis initiated before the crisis, with a Miami market that has continued to gain value over the same period (with very promising prospects for the coming years).

The financial solidity of the SOCRI LIMITED group thus emerges strengthened from this year 2022.

Summary
SOCRI LIMITED’S URBAN COMMERCIAL REAL ESTATE ACTIVITIES

• A relevant investment strategy
• An active marketing policy
• Excellent 2022 figures
• Two remarkable acquisitions in 2022
• Ambitious projects for 2023

LUXURY REAL ESTATE DEVELOPMENT ACTIVITIES IN THE UNITED STATES

SOCRI LIMITED’S STRONG SOCIETAL COMMITMENTS

SOCRI LIMITED’S URBAN COMMERCIAL REAL ESTATE ACTIVITIES

A relevant investment strategy
The year 2022 confirms once again that the group’s investment and commitment strategy in city center retail around the Mediterranean, a territory with dynamic demographics (+0.8% per year for example in the former Languedoc Roussillon), is particularly adapted and perfectly meets new consumption challenges and the expectations of local and tourist clientele (proximity, pleasure shopping).
On this subject, Pierre-Antoine Desplan explains: “We have long chosen to design and develop our shopping centers as true ‘living spaces’ in which the shopping experience is accompanied by moments of leisure, discovery and surprises, with centers that regularly renew themselves, varied event policies, and an increased presence on social networks. Our sites are much more than a juxtaposition of shops; they are places where you feel good, with a unique visiting environment, a subtle mix of urban and green atmosphere where you want to share time with friends or family. We are more than ever faithful to our promise to create exceptional places.”

An active marketing policy
The marketing policy, with the regular arrival of new brands, is one of the key factors in the success of the group’s shopping centers to make them leading and benchmark destinations in the fashion, decoration, beauty/health and leisure sectors. It demonstrates the expertise of SOCRI LIMITED teams who have, for many years, developed relationships with the main regional, national and European retail players, and have acquired real knowledge of the local fabric.
At Polygone Béziers, last year, Hubside Store arrived. This brand, with new or refurbished products at attractive prices, encourages consumers to save money while limiting their environmental impact by offering for sale or rental a wide range of devices: smartphones, drones, cameras, scooters, virtual reality glasses, speakers…
The WeFix brand also opened a point of sale at Polygone Béziers in 2022. In 2018, it joined the Fnac/Darty group and thus established its position as the French leader in express repair. This opening perfectly complements the telephone service offering at the shopping center.
At the end of 2022, Polygone Béziers also welcomed a Krys store. This French cooperative brand brings visitors a quality optician at accessible prices. Finally, two entrepreneurs, One and Luvia, came to complete the Béziers shopping center’s offering in women’s, children’s ready-to-wear, baby items and childcare. Four brands also renewed their lease at Polygone Béziers, thus marking their confidence in the future of a site that has become an unmissable regional reference year after year.
In the La Coupole shopping center in Nîmes, the Zandra brand opened its doors in July 2022. This store offers a wide choice of trendy jewelry, bags and fashion accessories. Zandra embodies the story of a family business and presents quality, elegant, refined and original collections.

Excellent 2022 figures
This overall strategy for 2022 is reflected in particular by a strong increase in turnover. Indeed, the turnover of Polygone Béziers set a new record and approached 110 million euros in 2022, representing an increase of more than 9% compared to 2019, its best reference year. La Coupole in Nîmes, only a year and a half after its takeover, consolidated a turnover 18% higher than 2019, demonstrating the effectiveness of SOCRI LIMITED management of its commercial assets based on significant strengthening of field teams, impeccable site maintenance and strong marketing dynamics.
As co-owner of Polygone Montpellier, SOCRI LIMITED is also delighted with the site’s good performance, notably a footfall of nearly 14 million visits in 2022, a direct consequence of the quality of its renovation, designed by SOCRI LIMITED in partnership with the SOCRI PROMOTIONS group.
Regarding the footfall of Polygone Béziers and La Coupole in Nîmes, the number of visits in the second half of 2022 is the same as in 2019 even though 2019 was a record year for Polygone Béziers. La Coupole in Nîmes, acquired by the group in June 2021, meanwhile shows a footfall in 2022 higher than that of 2019 by 1.6%. These results are very positive because, over the same period, French shopping centers recorded an average decrease in their footfall of 11%.
The Galeries Lafayette in Béziers and Avignon, managed in partnership with the Planet Indigo group, also show very good results in 2022: €26.3 million in combined turnover, placing them several months in the top 5 of their respective Galeries Lafayette comparison groups.
These performances are explained in particular by rigorous site management, quality customer service, their constant improvements to make them ever more attractive, and strong marketing and event dynamics.
Finally, the year 2022 was marked by the finalization of programmatic studies, audits and diagnostics of the restructuring and extension of the Fontvieille shopping center in Monaco, which will allow administrative authorizations to be filed in 2023. The opening of the real estate complex integrating a shopping center, parking, logistics area, park and housing will be effective by 2030.

Two remarkable acquisitions in 2022

• In February 2022, SOCRI LIMITED acquired with Planet Indigo the business of Galeries Lafayette Avignon from the Galeries Lafayette group itself. Located within the CAP SUD shopping center, Galeries Lafayette benefits from a privileged catchment area: at the crossroads of 3 departments (Vaucluse, Gard and Bouches du Rhône), the municipality of 92,000 inhabitants itself and many surrounding towns with high purchasing power, notably the proximity of towns such as Orange, Cavaillon, Carpentras, L’Isle sur la Sorgue, Rochefort du Gard or Saint-Rémy-de-Provence. This department store employs nearly 100 people and covers 6,500 m² of sales area. It opened its doors in 1974 and generates an average turnover of around €20M excluding tax. The Galeries Lafayette in Avignon offer nearly 500 brands, spread across the store’s 10 departments.
  The objective of the buyers is to rely on the partnership with Planet Indigo and the expertise of the teams in place to confirm Galeries Lafayette as the leading shopping destination in Avignon and gradually deploy a site revitalization program by improving the customer experience day after day.

• In November 2022, the premises of the Gaumont Comédie cinema in Montpellier were acquired from the Pathé Gaumont Cinéma group. With this acquisition, SOCRI LIMITED confirms its status as a real estate operator committed to the revitalization of city centers. This iconic 19th-century Haussmann building, which historically housed a Galeries Lafayette department store, has since 1998 housed a cinematographic establishment of the leading French group Pathé Gaumont offering 1,127 seats across 8 screens, for a total of approximately 1,800 m² over 4 levels.

With these two acquisitions, SOCRI LIMITED consolidates its position as the benchmark property company of the Mediterranean arc, specialist in city center commercial assets.

Ambitious projects for 2023

Following its takeover in June 2021, Socri Limited will begin the renovation of the La Coupole shopping center in Nîmes in 2023 with the complete restructuring of the central space, the famous Coupole square, for a budget of approximately one million euros. This first stage includes the installation of monumental glass staircases, a planted pond and a complete replacement of the floors to make this square warmer and more friendly. A second phase of renovation, more ambitious and likely to restructure the asset over the long term, should take place in 2024 and 2025 for approximately 9 million euros alongside the renovation works to be carried out by the city of Nîmes in the surroundings of La Coupole and in Les Halles. Discussions with the Nîmes city hall are underway to realize this ambitious project as part of a broad partnership. The objective is that by 2026, La Coupole will once again become an emblematic and benchmark shopping destination in Nîmes’s historic center, better valued, better connected and then fully playing its role as a commercial locomotive.

Continuing its investment policy to enhance its commercial assets, the Galeries Lafayette in Béziers will continue their renovation in 2023 with the replacement of exterior joinery to reduce energy consumption of this listed building and thus offer customers an even more pleasant visiting comfort. Those in Avignon will see their entrance in the mall completely restructured to gain height and thus visibility and attractiveness.

LUXURY REAL ESTATE DEVELOPMENT ACTIVITIES IN THE UNITED STATES

For SOCRI LIMITED’s American subsidiary, KOQIO, the year 2022 was marked by the official launch of construction of the ultra-luxury villa located on one of the emblematic islands of Miami Bay: “Dilido Island” (one of the six artificial Venetian islands of Miami Beach built a century ago). This land, which was acquired in 2018, will host a luxury villa, Maison Rive Gauche, of nearly 500 m². Construction officially began on November 30, 2022 after obtaining the building permit and financing in mid-year. This project is now valued at nearly $30m, or the price of a building with about a hundred apartments in Montpellier.
For this unique project, KOQIO collaborated with world-renowned architecture and design firms such as Strang Design, Dunagan & Diverio, ENEA Landscape and the French architecture firm Aura.
Maison Rive Gauche is located on a plot of more than 1,000 m² with lush vegetation, a symbol of Florida, with a magnificent 68 m² rooftop garden. The house enjoys a breathtaking view of Biscayne Bay with a spacious dock that can accommodate 2 boats and a direct view of the Miami skyline.

This property, located between Downtown and South Beach, with a unique selection of natural materials, furniture, artworks and details inspired by the greatest French designers and creators, will perfectly embody Miami’s fairytale lifestyle combined with the French art of living. It will be completed in September 2024 and will establish itself as an ultra-luxury benchmark in terms of design and quality of execution.

Pierre-Antoine DESPLAN, General Manager, explains: “We decided to enter the luxury real estate development market in Miami because this territory is growing strongly and for structural reasons: the establishment of many company headquarters and investment funds after New York and California, many schools and universities, and the regular arrival of wealthy retirees. It is also often the entry point to the United States for European or South American companies, which makes Miami an economic platform between different continents. All these elements have made the luxury real estate market very dynamic for several years.” He continues: “For us, this is a complementary and consistent activity with those we carry out in France. We have the same objective of creating exceptional places.” And concludes: “The development of luxury villas in the United States has also had a very beneficial counter-cyclical effect for the group. While COVID raised questions about the valuations of French commercial assets, the real estate value of our investments in the United States literally exploded, offering the group new financial opportunities.”
The objective for 2023 will be the completion of the shell of our first exceptional villa and obtaining the building permit for the next villa on Treasure Island. The American subsidiary KOQIO will continue its search for unique land in Miami for the group’s development in the exceptional villa market.

SOCRI LIMITED’S STRONG SOCIETAL COMMITMENTS

As part of the SOCRI LIMITED group’s environmental policy, shopping centers have implemented rational monitoring of energy consumption. This action has reduced energy bills by 30% at Polygone Béziers and 9% at La Coupole without compromising visitor comfort.
For natural plant protection, in 2022, four insect hotels were installed at the Béziers shopping center. These insect hotels also constitute a tremendous awareness-raising tool. With its Ceïba Foundation, SOCRI LIMITED committed to the Jardin des Plantes in Montpellier by organizing a gala dinner to raise funds. On May 18, 2022, the foundation unveiled its action plan and €60,000 was handed over to the Jardin des Plantes endowment fund in the presence of the Mayor-President of Montpellier Métropole. Since then, analyses and their applications have been carried out to “save the jardin des plantes” and thus help preserve this historic site.

CONCLUSION

The year 2023 will be important for SOCRI LIMITED which will celebrate 20 years since its creation in October.
This is the time for a review of the main projects successfully carried out:
2003: Creation of NCO company later renamed SOCRI REIM
2010: Opening of Polygone Béziers in partnership with SOCRI PROMOTIONS
2012: Acquisition of Polygone Béziers from SOCRI PROMOTIONS
2015: Opening of Polygone Riviera in partnership with SOCRI PROMOTIONS and UNIBAIL RODAMCO
2015: Launch in the luxury residential market with the acquisition and renovation of Carré Trocadéro (Avenue Georges Mandel in Paris)
2016: Start of the Galeries Lafayette partnership in Béziers with the Planet Indigo group

2018:

• Opening of a Business Center in Luxembourg
• Acquisition of the Monoprix lot within the co-ownership of the Polygone Shopping Center in Montpellier
• Opening of the subsidiary in Miami and first land acquisition

2019:

• Acquisition of a second plot in Miami
• Creation of a subsidiary in Monaco for the restructuring/extension of the Fontvieille Shopping Center

2020: Acquisition of the Galeries Lafayette premises in Béziers

2021:

• Acquisition of a third plot in Miami
• Acquisition of the La Coupole shopping center in Nîmes
• Creation of the Ceïba corporate foundation

2022:

• Acquisition of the Galeries Lafayette Avignon business
• Acquisition of the Gaumont Comédie premises in Montpellier.

After a successful year in 2022, SOCRI LIMITED will continue its growth in 2023 in its two activities: city center retail and real estate development in Miami while remaining attentive to potential opportunities thanks to its solid financial structure. The year 2023 will be an opportunity to consolidate and enhance promising assets (Polygone and Galeries Lafayette Béziers, Nîmes Coupole, Monoprix and Gaumont Montpellier, Galeries Lafayette Avignon), work on ongoing renovations and projects (Monaco as a priority but also Nîmes Coupole renovation) but also to seize new opportunities in the south of France and in the United States. The Socri Limited group has more than 60 employees in France and abroad and has now acquired an organization allowing it to confidently envision its future.

Press release – Montpellier – December 1, 2022