FOCUS ON INVESTMENT OF REAL ESTATE André DELPONT Expert Consultant, Bordeaux Euratlantique André Delpont worked for the development of the Lille area, especially for the Euralille project where he joined the construction of a high speed train hub. He joined Bordeaux to launch a similar project, as deputy general manager of the Communauté Urbaine de Bordeaux, and he is now in charge of the Bordeaux Euratlantique project.

1. Operation of National Importance
Vinexpo 2014 Hong Kong 2014-05-27
INVEST IN BORDEAUX REAL ESTATE
THE NEW CENTRAL BUSINESS DISTRICT
AROUND THE HIGH-SPEED TRAIN STATION

2. Who we are :
Bordeaux Euratlantique is both the name of:
- The « OPERATION OF NATIONAL IMPORTANCE » Bordeaux Euratlantique
A project: this is an important economic and urban project recognised and
supported by the State ; there are 15 such projects in France.
- The PUBLIC DEVELOPMENT AGENCY Bordeaux Euratlantique
An agency: this provides the structure and the team responsible for carrying out
the ‘Operation of National Importance’ project : it associates the State with the
local authorities involved (the towns of Bordeaux, Bègles, Floirac, the Urban
Community of Bordeaux, the Regional Council.
- Organization and investments : similar to a private business
A protocol and a business plan, sharing risks and contributions
A master plan with input from local authorities, private operators and the population
- A financial lever
800 M € of investment from the Public Development Agency Bx Euratlantique
• 700 M € revenue from the developer
• 100 M € public participation
5 billion € of public and private investment

3. Contents
- 1. France and Bordeaux property market
- 2. Bordeaux assets
- 3. Bordeaux Euratlantique CBD project
Bordeaux & the river Garonne: birdview on the high speed train station

4. 1. France and Bordeaux property markets
The « Prelude » Euratlantique office building was the first one to be delivered in september 2013

5. 1.1 French market : Paris compared to regions
Source : IPD 2012
Paris
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Capital yield (%) Rental yield (%)
25
20
15
10
5
0
-5
-10
12
10
8
6
4
2
0
ParisRégions Régions
Regions present a more stable total return
A variability 35 % lower than the Paris one An average yield of 200 bps above Paris one

6. 1.2 Bordeaux market: assets & investments 2013
Source : OIEB 2013
Investments
220 Millions € in 2013
(275 Millions € in 2012)
Profile of Investments by assets
47% Shops
16% Logistic & plants
37 %Bureaux
New offices 6,40 % - 7,00 %
Second hand offices 7,50 % - 9,00 %
Logistic 7,50 % - 10,00 %
Plants 8,50 % - 10,50 %
Yelds

7. 1.3 Bordeaux office market: regularity
Source : OIEB 2014
100 440sqm
83 500
sqm
83500sqm 85 380 sqm
87 250 sqm 86 940 sqm
Number of transactions 2013 = 201
2008 2009 2010 2011 2012 2013
Evolution of the transactions volume since 2008
158
146
131
137
125
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
117
106 111
127
New
Second hand
Evolution of the level of rent € /m²/an (excluding utilities, excluding VAT)
93
108
144 New (Suburbs)
99
171 New (city centre)
180 Prime
135 2nd hand (centre)
118 2nd hand (suburbs)

8. 1.4 Bordeaux market: profile of final users
Volume of transactions 2009-2010-2011 (sqm)
Source : A’Urba / Bordeaux Euratlantique
Public administrations
45 800 sqm / 17%
Call centers
2 300 sqm/1%
Training
10 800 sqm/4%
Real Estate/Building
18 600 sqm: 7%
Legal & finance
42 300 sqm/ 16%BtoB Services
59 500 sqm²/ 22%
Personnal services
31 900 sq m/ 12%
IT
29 300 m²/ 11%
Small business
4 000 sqm/2%
Others
9 180 m²/ 3%
Unidentified
13 100 m²/5%
Main users : B to B services + Legal & Finance = 38%
Growing importance of the IT sector = 11%

9. Welcoming the wine spectators with the Cité des civilisations du vin : opening in 2016
2. Bordeaux assets

10. 2.1 Bordeaux a new rail hub 2017-2030
2017
Bordeaux-Paris
2 hours
2030
Bordeaux-Bilbao(Spain)
2 hours
2024
Bordeaux -Toulouse
1 hour

11. 2.2 Growth: Bordeaux region, a booming area
2014:
- Bordeaux metropolitan area: 1.1 million inhabitants less than 50 km from Bordeaux
- Bordeaux urban area : 380 000 jobs
2030:
- Bordeaux metropolitan area: + 300 000 inhabitants
- Bordeaux urban area + 75 000 jobs
Average annual growth rate by region (2007 - 2040)
Bordeaux region (Aquitaine) at the heart of
the French population growth curve
Bordeaux urban area :
+ 10 000 inhabitants per year
Population
Gross domestic product
Bordeaux
Paris
Bordeaux
Paris
Average annual growth rate by region (2000 - 2007)
Bordeaux region (Aquitaine) :
- ranked 5 in France for growth
- 4,5% of the national GDP

12. 2.3 Bordeaux appeal
Bordeaux draws & welcomes the young urban professionals
Good spots in Lacanau 50 km from Bordeaux
→ Bordeaux is the second favourite town of the French, behind Paris,
from amongst the 10 main metropolitan areas, with a percentage of 37%
(BVA poll – sample of around 6,500 people – April 2013)
→ Bordeaux Metropolitan area judged the 2nd most attractive in France
by young executives and young graduates (52% - Source APEC 2011)

13. 2.4 The major economic clusters of the Bordeaux area
BORDEAUX
EURATLANTIQUE
Upper services-sector
Digital and ICT
Chemical activities
Port and logistics
Lasers
Campus
Aerospace and defense Tourism
Green tech

14. 1. Opening up an area on the edge of Europe : High-Speed Train, plane, and very high-
speed internet access
2. Maintaining the appeal which comes from its living environment : offering an
example of sustainable development
3. Enhancing the main economic assets: innovation, aerospace, services-sector
( wine represents 15% of the economic activity)
2.5 Bordeaux ambition: the european metropolis
The development priorities for the Bordeaux metropolitan area
The new high speed train station in 2017

15. 3.Bordeaux Euratlantique CBD Project
Overview of the project on both sides of the river Garonne
Forefront: the future new bridge. Background: city centre

16. ENHANCING THE HIGH-SPEED RAIL HUB: 20 million passengers
1. Developing the activities of a European metropolis, decision, innovation and exchange :
a European business area and 25 000 top level city jobs (33% of jobs - half from the growth
of companies already present and half from attracting companies from outside the area)
2. Welcoming 8% of the new population, 25 000 inhabitants
3. Becoming an exemplary urban site for sustainable development : the French « Eco-city »
label
3.1 Bordeaux Euratlantique project : the aim
Green areas, shops, offices and housing between the station and the river

17. 3.2 Bordeaux Euratlantique CBD location
Interconnection train, bus
tramway, car, bike and boat
District builded around the
train hub and along the
river on 738 ha
2 new bridges
- one across the river
- one across the tracks
10 minutes by tramway
from the city centre
2 km far from the ring
highway
30 to 45 minutes from the
airport

18. A mixed-use programme
of 2.4 million sqm :
1 200 000 sqm of housing units,
450 000 sqm of office space,
(300 000 in St-Jean Belcier)
50 000 sqm of hotels + para-hotels
80 000 sqm of residential units
(elderly, students, artists…)
150 000 sqm of business premises
170 000 sqm of public amenities
300 000 sqm not yet allocated
50 hectares of new green space
3.3 Bordeaux Euratlantique : a programme
Map of the project : office buildings (blue)
mixed used office-housing buildings
(purple) and green areas

19. Weight forecast of the project
on the metropolitan market
Office park: 12 to 15% of the overall park by 2030
Annual volume of transactions: 25 % (from 2017)
Profile of the final users
Banks, accountants, energy companies,
wine traders, building companies
Start-up, telecommunications & IT businesses
Over 105 000 sqm delivered between 2017 and
2019, 50 000 sqm have yet found final users
3.4 Focusing on office space : the new CBD
CEAPC bank HQ along the river Office building project at the station Eiffage mix used project
Two flagship office buildings
-The World Trade Center: all the
international adresses and services under
one roof
- « La Cité numérique »: (« the digital
city »): an old sorting office is being
refurbished in order to set up start up and
to become the heart of the greater
Bordeaux IT cluster

20. 20
June 2014:
First building permits granted
First construction in the Urban
Development Zone
irst projects delivered
2016:
. MECA (Cultural centre),
. Caisse D’Epargne (bank HQ),
. Wooden-framed office blocks)
. Cité numérique (« digital city »)
2017-2018 :
. Completion of the High-Speed
Train Line Paris Bordeaux
. New station,
. New bridges
. World Trade Center
3.5 Schedule for the Urban Development Area

21. To sum up: The 8 reasons for choosing Bordeaux Euratlantique,
1. MOBILITY: all methods of transport
2. MARKETS: a growing economy
3. AMBITION: to become a competitive
European metropolis
4. APPEAL: a way of life
for the new generation
5. A "BUSINESS FRIENDLY" ECOSYSTEM:
an international dimension
6. AN INNOVATIVE DISTRICT: "Talents,
tolerance, technology"
7. PUBLIC/PRIVATE INTER-CONNEXION:
easy access to local players
8. An excellent QUALITY/PRICE ratio
View point on the city centre - 2020
« Building a work place
wich engages
a diversity of employees
and bring out their best,
makes a far greater contribution
than financial success alone »
Mitch Kapor
Founder of Lotus development corp.

22. Welcome to Bordeaux
Thank you
>> andre.delpont@bordeaux-euratlantique.fr
>> www.bordeaux-euratlantique.fr
22