2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

1PRESENTATION OF THE CASINO GROUPReal estate and investments1.4.2 ROLLING OUT THE DUAL RETAILING AND PROPERTYDEVELOPMENT MODEL IN FRANCE AND ABROADThe Group’s expansion plan in France and abroad is based on abusiness model combining retailing with property. This model underpinsthe Group’s profitable growth strategy and meets two key objectives:to increase the appeal of its sites in order to drive the retail businessand to create a portfolio of valuable assets.Casino has set up a dedicated department in France called CasinoImmobilier et Développement, which comprises subsidiaries specialisingin areas ranging from land purchase and property development toproperty letting and asset value enhancement:■ Immobilière Groupe Casino (IGC), a wholly owned subsidiary,holds the Group’s store properties.■ Mercialys, a subsidiary of IGC, owns the Group’s shopping centresin France and is responsible for operating this high-potential retailspace with the goal of capturing its full value. Mercialys is oneof France’s biggest property companies and a leading shoppingcentre operator.■ Casino Développement coordinates expansion in France andinternationally.■ IGC Promotion, Onagan and Soderip promote the Group’s retailspace in France.■ IGC Services manages asset turnover and financial engineeringof the property portfolio.■ Mayland develops shopping centres in Central and EasternEurope.■ Sudeco manages shopping centre leases.■ GreenYellow installs solar panels on the store roofs and shoppingcentre car parks.1.4.3. ENHANCING THE VALUE OF EXISTING ASSETS:THE ALCUDIA/“ESPRIT VOISIN” PROGRAMMEMercialys, the owner of the Group’s shopping centres in France, aimsto redevelop its retail space to meet changing consumer trends. Byrenovating and extending high potential retail space, Mercialys attractsthe most active banners and contributes to enhancing the vitality ofCasino’s shopping centres.Three years ago, the Group set up the Alcudia plan, a majorprogramme to enhance the value of its retail properties with a view tocreating both real estate value and business value in France.Initiated in 2006, the plan aims to strengthen the appeal of the Group'sretail properties by extending shopping centres and creating thrivingsites that have their own personality and are deeply rooted in local life.The process of reviewing and defining a strategic plan for the Group’s109 sites was finalised in 2007 and the operational rollout phasebegan in 2008.In 2009, a major milestone was achieved when Casino contributedto Mercialys a €334 million portfolio of property assets comprising25 Casino development projects and hypermarket retail and storagespace.In addition, under the Alcudia/Esprit Voisin plan, five sites wereextended and nine converted to the Esprit Voisin concept.A further milestone was reached in 2010 when Mercialys sold45 assets for an amount of €120.1 million at the year-end. Thesewere mature assets comprising mainly service malls, food stores,individual assets, single store and restaurant properties, variousco-ownership lots and a shopping centre at Saint-Nazaire consideredto have reached maturity.The Esprit Voisin programme continued in 2010 with seven completionsduring the year.14 Casino Group | Registration Document 2010