Good morning, everyone. I'm very pleased to welcome you today with Jean Michel for the 2019 Full Year Earnings of Klepierre. PIERRE We will make a short presentation, and we will leave the floor to the questions. So starting with the presentation, I would like to make a statement that 2019 has been an additional year where we have keep on executing our strategy, which we believe is a winning strategy in a retail environment, which is transforming. And this is a year where we have posted robust results.
And the cash flow net sorry, the net current cash flow per share is growing by 6.7% to €2.82 And this is the outcome of a strategy that we have started five or six years ago. And the three pillars of this strategy are very clear to us. The first one is to focus on preeminent assets in large cities and large catchment area, and we'll come back on that. The second one is to have a platform where the teams are customer centric, and I would say also customer focused or even obsessed by the customer satisfaction. And the third pillar is the financial discipline.
And these are the three elements for us to weather the retail transformation that we are all facing. The first pillar is clearly to be focused on large cities, large catchment area where the population is more than 1,000,000 inhabitants and the average revenue per capita is 20% above the national revenue per capita. And we have today made a fantastic over the years, a fantastic refocus of the portfolio. And Klepierre today is more than just 100 properties, representing 96% of the total value. And this was 94% in 2017.
So we think we have achieved today a fantastic refocus, and we will continue disposing noncore assets as we have done this year, but most of the refocus is achieved. The second pillar is to be customer centric. And I think we have because of the size of the platform and because of the quality of the team and our Pan European footprint, we have deployed a very systematic approach. And we have you all know four pillars. The first one is Retail First.
And Retail First is all about changing the mix and improving the quality of retail and also hosting new occupiers in our malls. The second pillar is Let's Play. Let's Play is to make our malls more entertaining and to increase engagement and loyalty. The third one is Club Store. It's all about making our shopping center more pleasant to improve the customer journey and to have a sense of hospitality and to offer a seamless experience to our customers.
And last but not least, which is not something we do on the side, but which is act for good. Act for good is to make sure that our operations and growing our cash flow is also made with a sustainability approach and that we want our operations to be sustainable. And we can measure it. And you will see during the presentation that it's not only a vision, it's something we can clearly measure. We have growing sales.
Sales are doing better than national indexes. We have also a very strong occupier demand. It's not only retail demand, but many type of occupiers. We are also changing fast and adapting the mix in our malls. And we have an increasing satisfaction that we measure with NPS.
And NPS in our portfolio has increased by eight points in 2019. The third pillar is to be financially disciplined, and we have continued in 2019 to dispose non core assets. We have sold for a little bit more than 500,000,000 with a 6.8% net initial yield. We were 6.1% above book value. And with the proceeds, we have done some share buyback as planned with 8.9% cash flow yield, and we have also reinjected the proceeds in very accretive pipeline projects.
We'll come back on that with a 6.6% yield average. And when we look back at what this has been doing over the last five years, you will see that the cash flow of Klepierre has increased by more than 30% since 2015, and the net debt to EBITDA has decreased also very significantly from 9.2 times to eight times. And in that in view of this strategy and our earnings in 2019, we are going to present to the shareholders a dividend of €2.2 which is an increase of 4.8% compared to 2018. And we are pretty confident for the future because we think that the strategy is very clear. The strategy is paying off.
And we have a financial discipline that will also pay off. So we have basically three items that you need to keep in mind. We have a low OCR, probably one of the lowest in the industry. We have also a very low net debt to EBITDA, a reasonable payout, and we can easily invest in our properties and deploy our strategy. If we focus now to 2019.
2019 has been a very strong year in terms of net rental income like for like. You can see that we are positive everywhere but in Germany, and we are posting very strong results in Iberia, 7.8% Netherlands, 5.5% Italy, 3.2%. And this is also one of the benefit of being Pan European is that we can take advantage of the different macroeconomies that are in Europe. They are never all synchronized. But over the time, this is great support of the resilience and the growing cash flow for Klepierre.
And we have also significantly increased our specialty leasing income by more than 7% in 2019. We have been also very, very dynamic in terms of leasing. The number of leases is almost 1,600, and the average reversion is 8.2%. And this has as you can see, more than dynamic in Iberia and Italy, where we are at double digit reversion, and we are also posting excellent figures in the other countries, but in Germany. And when we look at the other main KPIs of 2019, we can see that the EEPRA vacancy rate is 3%.
We are back to the level we were before we acquired Corio. If you remember, 3%. So this this show that the platform through the various disposal is improving constantly. The bad debt, which is also a sign of the solidity of our tenant base, is at a record low at 1.6%. And the occupancy cost ratio, as I mentioned, is pretty stable around 12.4%.
And this has been done in a retail environment where sales are growing. Sales are growing almost everywhere but in Scandinavia. And we have seen over H2 a slight improvement compared to H1. And the growth of sales over 2019 is double than the growth we have registered in 2018. And we'd like to focus a little bit on two pillars and what we have done this year on two of our operational pillars.
The first one is Retail First. And Retail First, for us, is to proactively adapting the mix to consumer expectations. And we have been doing that for more than five years now, and we did it proactively. The second one is to ease the transition to omnichannel. What does it mean?
It's to provide to the retailers the best real estate for them to invest into their stores and to adapt their new format. And we are doing this also to take advantage of the retail concentration to make sure that the investment from our retailers are made in our malls and not in the competing schemes. And when we look a little bit more in the details, we have categories where retailers, we have a very strong deal flow with our key accounts, and we keep signing a lot of deals with all of them. And those are a few examples out of the 1,600 leases we have signed. But you can see that within Ditex Group, we have signed more than 20 deals and ratio of more than 40.
So we keep on leveraging the platform, the leasing platform in Europe. We are also attracting new players. It's something that is more and more important in our leasing strategy. We have a few names on the page. Probably a few of you are aware of or used to see them.
Chien is the first one. It's a fashion retailer. We have done fantastic pop up stores with them in France, and they have been attracting a lot of customers. It has been really great. Of course, it's sunglasses.
They were only on online business, and now they are opening stores. So it's a mix of automotive. As you can see on the slide, automotive is also a way for those brands and those banners to showcase their innovation. As you know, automotive business is transforming fast, so they use our malls as the best way for them, the best media to reach their customers. Is the DNVBs.
And also, what is quite in line with our Act for Good strategy is to give a chance to local niche brands that are also very attractive. We are also widening the offer in our malls, so from value retailers to upscale brands. In Emporia, in Malmo, we have a mix of herb and that probably you don't know, it's a little bit an equivalent to Primark or Axione, but we also have a Chanel store and we have a Hugo Boss store. So we are also enlarging the offer to reach more customers. We are also supporting brands that are going retail.
They are retail brands, but they were not used to have shops in malls. A few examples like Dyson. We have opened six stores with Dyson in our malls, and they are also doing fine. We have all the OOI MI doing great. Daniel Wellington, this is watches also developing fast in our shopping centers.
And last but not least, we are offering more than shopping. We already mentioned it many times. We in our strategy, which is shop, meet, connect, we need to offer more than shops, so places where people can meet and connect and have other reasons to come to a mall. So two examples which are very opposite, I would say. We have opened a 4,000 square meters hospital, it's a real one, in Guimaraes in Portugal.
And we have opened a ballet company, a ballet studio in FiDs in Copenhagen. And in terms of numbers, we are moving fast. We are changing the mix fast to adapt to the retail transformation and the new customer expectations. And a few numbers here in 2019. This is the number of stores that have been renewed, released in percentage.
You can see that in Milan Leofoury. In Milan, we have changed in a year 36% of the mix, upgrading it. In Oslo, it was 22% Parquet And Haitente, 18% in Acqua Portimao, in Portugal, 16% and in La Gavia, in Madrid, 15%. So there are also tremendous numbers, which give us comfort that the leasing is very vibrant. And we also measure it by the investment that the retailers are doing in our malls.
We are very careful that when we do a releasing or renewal, the retailers are making the new store format and that they are investing in their stores. And when we measure it in 2019, it's almost €500,000,000 that has been invested by our retailers in our malls. And I think it's a good sign that they favor our mall long term. And the second pillar is Act for Good. Act for Good is not something we do on the side to tick the boxes.
This is something we have put in the middle of our operations. We think that there is a growing and growing aspirations from the customers to have operations that are more sustainable, more local and more social. And this strategy is clearly embedded in our leasing and let's play policy. And we are moving fast. We are moving fast, and we are doing very well.
So, we have decreased our energy consumption by 29% since 2013, and we are clearly on track to reduce our energy consumption by 40% in 2022. We have also completely renewed our energy supply. We have more than 93% of our electricity, which is purchased from renewable sources, sorry. And we have, as you know, a target in 2030 to be to have a portfolio, which is carbon neutral. And when you look at the chart, we have decreased by 72% our carbon footprint since 2013.
So we are also moving fast in that direction to answer to the customer aspirations. And our portfolio also, we are the first REIT in the world to have its portfolio certified as a portfolio by BRIAM. And when we look at the outcome, 95% of the portfolio is either excellent or very good. And this was a target we had for 2022, and we had achieved it three years ahead of time. And we are also engaging with our communities to make our shopping centers more local and more social.
And this is just one example of what we are doing. We are we think that the community of people working in our malls, they need to have a sense and a purpose in coming working in our malls. So we have deployed an app, which is called Let's Join, which is an app where we share information and services and dedicated services to the retailer staff and to the supplier staff, and it's doing pretty well. And when we measure the satisfaction of our customers, we have our NPS, Net Promoter Score, that has increased by eight points since 2018, which is really a great achievement. And now focusing on the capital allocation.
In 2019, we have sold or signed agreements to dispose €645,000,000 of non core assets. They were it was done at 6.1 percent above book value, which give us comfort about the valuations. And this was done at a 6.8% net initial yield. And this was a little bit inflated by the disposal in Central Europe, where the yields are historically higher. So when we took out the Central Europe disposal, we were around 6.3%.
And we have, as I indicated, reinvested in an accretive way in our portfolio. We have done a share buyback. We have done new development project, and I will come back on that. And we have also done a small but very interesting acquisition by taking 10% of Belle Epine, which is one of the largest shopping center in the South Of Paris. So 2019 has been the milestone in 2019 for the development activity has been the opening of Creteix Soleil.
This is an 11,000 square meter extension. It was 100% let at opening. It was a yield on cost of 6.1% precisely. And since opening, the footfall has increased by 19%. Grand Renault, this is the construction is underway.
We are pre debt at 56%. This is a 25,000 square meter extension in Bologna. This is one of the wealthiest region in Italy or I think it's even the wealthiest region. And as you can see, we have a lineup of tenants, which is also very attractive. The next one on the agenda is the extension of Grand Place.
It's in Grenoble in France. This is an extension of 16,000 square meters. We are already 56% pre let. You can see that we this is one of the tenants would be Primark. I think this will help us to increase the footfall of this already 11,000,000 footfall shopping mall.
And work should be started H1 twenty twenty. And now I will leave the floor to Jean Michel MICHELLE to go through the financial DE
Thank you, Jean Marc, and good morning, everyone. So let me start this finance section with a traditional one, the bridge of our net current cash flow from 2018 to 2019. As you can see, we continue to grow our cash flow at a sustained pace. For 2019, we posted a 6.7% growth. Once again, it is a very solid performance.
As in previous three years, the main driver of our net cash flow growth is a 3% like for like NRI growth that Jean Marc mentioned earlier. The reduction in our financial cost also contributed to the cash flow growth quite substantially. I will discuss this in more detail in the next slide. Regarding the capital allocation, the dilutive impact of disposals completed in Italy and Hungary at the 2018 and the disposal in France, Portugal and Hungary in 2019 were slightly higher than positive contribution from recent development and the share buyback. You may recall that our share buyback program is implemented at a similar pace as a one off disposal.
Overall, excluding a €03 one off one off element, our net current cash flow grew by 5.6% to €2.79 per share, way above our initial guidance of €2.72 to $2.07 5 This one off element, just to come back on this, is a financial income of €9,000,000 corresponding to the compensation received by Klepierre on a cash deposit we made to the tax German authorities in connection with the tax litigation incurred by Corio prior its merger with Klepierre. A quick word on our cost of debt now. As you can see on this chart, it continue on its downward path to reach a low 1.45%. As you remember, we mentioned in our half year 2019 presentation that we still had €1,800,000,000 of debt at an average cost of 2.7% to refinance by 2022. We will get some of the benefit of the refinancing in the next eighteen months as we expect to get lower coupons, bearing in mind that we have already swapped to float some of them when interest rates were higher, that is to say a couple of months ago.
This should allow us to keep lowering our cost of debt going forward, considering especially the outstanding access to liquidity we have. I think this access to liquidity is one of the main strengths of Klepierre. As shown in this chart, our credit spread is one of the lowest in the REIT industry. This is a consequence of the strength of our balance sheet and a reflex of our A minus rating in which we are well anchored with an outlook stable. We checked the solidity of our credit when we last issued a bond in June 2019.
We got 45 bps, as you probably remember, for an eleven year maturity, pointing to a 0.625 coupon. Looking at today's market condition, despite a slight increase in spread, we would get the same pricing as the spread increase has been offset by the decrease in interest rate. So no material change on this front, very good condition financing condition for Klepierre going forward. In 2019, our net debt decreased by €45,000,000 let's say broadly flat and stood at 8,830 million euros at year end. Consequently, our net debt to EBITDA declined to 8x compared to 8.3x last year.
This combined with the 6.5 average maturity of our debt make our financial profile even more robust. Let's look now at valuation. The valuation of our portfolio, I would like to underline that the investment market has comforted us to a certain extent. First, we have seen landmark retail transaction in the continent that give good signs of liquidity for quality asset at decent prices. And second, as Jean Marc said, we have been able to sell for EUR $530,000,000 of worth of asset above book value.
So we are confident that the values in our book reflect the mark what the market currently prices. Overall, the change in the second half, minus 1.1%, was quite similar to what we have seen in the first half. I remember you, it was minus 0.9%. Our IPRA net initial yield stood at 5%, a 10 bps increase compared to six months ago. In relative terms, compared to a blended risk free rate of 0.7%, the net initial yield of our portfolio materialized four thirty bps risk premium.
This risk is the widest seen in a decade. Some remember probably higher yields in the past, but never such low risk free rate. The slight decline of the portfolio value was entirely due to minus 2.3% market effect, while the cash flow effect was slightly positive. I would consider this is probably the main thing and the most important one at plus 0.3% as illustrated by the change in the appraiser main assumptions. Indeed, when looking at the changes and going to give you more details on what how the valuation have been done.
In this assumption taken by the appraiser compared to twelve months ago, it was noting a broadly stable discount rate, which is a consequence of a higher risk premium and a lower risk free rate. The exit rate increased very slightly on top of the element I've just mentioned for the discount rate. This change was also driven by lower indexation going forward. The decrease by indexation by valuers has been for about 13 bps into the discounted cash flow calculation. It's also worth noting the change in scope that tends to lower the discount rate and the exit rate as the assets sold in Hungary and Portugal were yielding higher.
Regarding the NRI forecast, thanks to healthy renewal and despite a slightly lower indexation assumption, NRI growth forecast is an average 2.4% and was lowered by 12 basis points. Moving now to NAV. The evolution in the portfolio valuation I just described below translate into a €1 decline in OEPRA NAV per share, minus 2.3% over the twelve months, which stood at €39.0.5 at the December 2019. The main items explaining the evolution are strong cash flow generation, $2.82 per share, more than offset by the portfolio downward repricing, 144, and the dividend payment for $20.10 euros ForEx and other operating and financial costs were responsible for an additional €0.20 reduction in NAV. This mainly includes nonrecurring costs that were not fully offset by the impact of the disposal above book value and the relative effect of the share buyback.
Our triple net NAV stood at €37.4 per share or a 4% decrease. The gap compared to NAV reflect the impact of the fair market value of the fixed rate debt, which was hampered by the drop in interest rates, especially during the first half. Before moving to the dividend payment, I would like to dwell on our uses and sources of cash. Once again, in 2019, our net current cash flow more than covered the dividend and distribution to minority partners as well as maintenance CapEx, which amounted to €98,000,000 of which €25,000,000 are recharged to tenants and below last year level, which were €127,000,000 As you can see on this slide, our cash flow was even sufficient to finance a large part of our $2.00 €5,000,000 in development CapEx as well. Our second source of cash comes from the disposal proceeds, which reached €537,000,000 300,000,000 were of this was allocated to our share buyback and roughly €90,000,000 to the acquisition of a 10% stake of Belle Epine, a leading mall in Southern Paris, already managed by Klepierre for many years.
The balance between these different items went to pay down our debt, as I told you previously, minus 45,000,000. Last but not least, to conclude this financial part, a word on the dividend. At the next shareholder meeting, we will propose a dividend of €2.2 per share, an increase of 4.8% versus last year. This represents 79% of Klepierre net current cash flow group share, excluding the one off. This sizable increase demonstrate our confidence in our ability to keep delivering sustainable dividend growth going forward.
So distribution of the €2.2 breaks down €0.76 for the SIC, EUR $0.05 9 for the non SIC and EUR $0.08 5 as an equity repayment. At last year, the dividend will be paid in two equal installments of EUR 1.1, the first one in March 11 and the second one in July 9. And as a very last few words, because I can't resist, I wanted to comment on this graph. As you can see, growing the dividend regularly is a long standing tradition in Klepierre. Indeed, it never decreased over the last twenty years.
As Jean Marc mentioned in his introduction, we believe it should continue going forward. SUNDSTROM:] This is all for
me now, and I leave to Jean Marc the floor for a quick conclusion and the outlook. So thank you, Jean Michel. Just a quick wrap up. This has been a very good year, 3% like for like net rental income. In the current environment, this is, I believe, quite outstanding.
That confirmed the quality of the strategy. 5.6% net current cash flow when we exclude the one off, that's also very strong. We keep disposing assets, $645,000,000 above book value. We do it at our pace. We keep the leverage in our peer group at a low level, 8x net debt to EBITDA.
We have a strong balance sheet to finance our development and our organic growth. And we pay a dividend, which is 4.8% increase to last year. I think it was a very good year. When we look at twenty twenty, we are also very confident to continue growing the business and growing the cash flow. And we will propose a guidance for the net current cash flow to be between $285,000,000 and €290,000,000 You have to keep in mind that we have sold more than €500,000,000 So we are also losing cash flow.
We are offsetting it with the share buyback. But the guidance also take into account the fact that we are a net seller in 2019. Now I will leave the floor to the questions in the room and online.
Hello. Thank you very much for the presentation. Faula Joubert from ODDO BHF. So, I would have three questions, if I may. So, first question about your innovation in Iberia and Central Europe.
So, you have huge innovations in this country in 2019. So how sustainable are these innovations in the future? So this would be my first question. Second question, is it possible to have maybe more colors about your expectation in terms of disposals of nonstrategic assets for 2020? And maybe third question, so we have seen that we have a repricing of your assets, so in H1 twenty nineteen and at the 2019.
So what is the comfort of this repricing? So are we to expect another repricing at the next publications? Or what is your opinion CHALENDAR:] on that?
Okay. Thank you. Your first question was about the reversion in Central Europe and Spain. I think the fundamentals of the economies in Spain, Portugal and Central Europe are fundamentals are very strong. So we have a GDP growth in Central Europe, which is exceeding 3%.
We have sales going up also more than 5%. And in Iberia, the GDP growth is a little bit softer than last year, but it's one of the highest in Europe. So we are benefiting from a recovery cycle and also a boost of GDP. There are exceptional numbers, so we don't expect to do that forever. But we are also very positive for the years to come.
We have a portfolio which is very well positioned in those countries. And they are also very well occupied. There is a great tenant and occupier demand for those malls. So we see growing sales. We see retailer demand.
So we are very positive that the reversion will be strong for the years to come. For the disposals, I would like to we keep repeating that we are refocusing, refocusing, refocusing. We have done it. So we have 4% of our portfolio, which are noncore assets. We are doing it we are selling over the last four years.
We have sold €500,000,000 average. So are we going to do that in 2020? You will see. We are disciplined in refocusing our portfolio, taking advantage of the investment market, doing it above book value. And so we are pretty confident that the values in our books when we are disposings are pretty reasonable.
And 6.1% above book value, that's a good number. For the repricing of the assets, this is what it is. So there is concern about liquidity. You all know that. So there is, I would say, a decent repricing.
We are comfortable with it. We need to keep in mind that we are in an environment where we are still posting growth. We have retailer sales going up by almost 2%. We have like for like growth by 3%. We have reversionary potential of 8% this year.
So the indicators are positive. And so there is a market effect repricing, which is probably reflection of the investment market. And for 2020 and going forward, we don't do prediction. It will be what it is. We think we have the good balance sheet.
We have a strong balance sheet. We position ourselves to be, I will say, protected against the cycles. And that make us very comfortable going forward.
Morning, Carre Anel, Clouard for Kepler Cheuvreux. I have a couple of questions from my side as well. So just to come back on your portfolio valuation and the decrease that occurred last year. So can you maybe give us the breakdown between big centers and the other centers, especially in France? Also, can you give us the value creation recognized in 2019 with the extension of Cretei Soleil in €1,000,000 please?
On Belle Epine, if I'm not wrong, you are already managing the center. Maybe can you give us the rationale to buy only 10%? BOUVIGNIES:] And can we expect more on the center?
So I will on the portfolio valuation, maybe Jean Michel
to Well, we will not disclose this level of detail of information, but just to say that the scope of yields in France, roughly speaking, goes from 4% to 6.5 Robert. Jean Marc, I think you're okay with this. So this is it. And we have stressed that when we dispose even secondary asset in France, like we did over the past, we did it at a book value. So I think, again, we are very convinced that this is very our portfolio is valued in connection to the market.
We were used to say that it is important to mark to market our asset, considering that we are also a seller into the market. So the best way to succeed in disposal, like we succeed, by selling about €500,000,000 of asset every year, is to go SOLAY:]
close to the market. On the second question, it was It's about Belle Epine. Belle Epine, it's we CJC, the predecessor of Klepierre, they build it. We manage these shopping centers since 1975, okay? So I think it was the right time to put some money in the game, as we said.
This is an excellent shopping center. We are very pleased that the owners of this mall has opened the capital to us. We have taken 10%. I think it was a wise investment, and we are looking forward to continue developing this asset as a shareholder now of this asset. So I think it was a good idea, pretty small investment for Klepierre, but a very good idea.
And for those who knows the South Of Paris and the number of malls, this is the dominant one in that catchment area. PAUL And the third question was
On
Crete, we did the total investment cost is around €150,000,000 with a 6% yield on cost. And when you look at the net initial yield of the French portfolio, you can easily measure the value creation we have done on it.
Sorry, I
think we have also some questions online. So for one minute, we will go online. Can we get the first question online, please?
Hi, good morning. It's Sander Bunk here from Barclays. Two questions from me, please. The first one is on your guidance, second one on the LTE. The first one on the guidance.
If I if I take into account the disposals in 2019 assume some further disposals in 2020, make an adjustment for share count and financial savings, I actually get to pretty low implied NOI growth. That looks consistent with your commentary around lower indexation expectations for 2020 and slightly lower MGR uplifts in Q4. Can you just give a bit more comment on what you're seeing in terms of organic growth for 2020? Or is it more that your guidance is, again, quite conservative? And the second one on the LTV is that you obviously disposed made some good disposals in 2019.
Nonetheless, your LTV ticked up by around 100 basis points for a variety of reasons. How are you thinking about that going forward? And how are you thinking about buybacks in that light? Are you looking to renew your buyback program? Or given the fact that your LTV is ticking up now, are you going to put that on hold once the €400,000,000 has been completed?
JEAN Okay. Thank you very much. The guidance, it is what it is, okay? We think this is in the current environment, we think it's showing growth. We don't itemize the cooking of the guidance.
There is a mix of NII growth, disposals, acquisitions, probably share buyback and debt reduction and so on. So we don't itemize, but we think we will the guidance has been made assuming robust organic growth in 2020.
It's similar to 2019 or lower?
JEAN My English, as you know, is limited. So I would say similar in French sounds okay. So in English, probably, too. Now we are doing well. I think we are 3% like for like growth this year.
This is pretty good. So we will continue, I think, in 2020 delivering good, sustainable organic growth. When it comes to LTV, LTV is a function of value and debt. I think Jean Michel has clearly explained the financial discipline. The financial discipline of Klepierre is to make sure that we use our capital wisely, and we also use it in a way which is accretive.
So it's difficult to predict what we are going to do in 2021 and 2022. But we will continue to be very disciplined, keeping the debt stable. That's the main assumption we have taken over the years. And this is the basis of the guidance for 2020. And we have a long term guidance on LTV that you know, which is to be between 3540% long term.
And we are right in the middle, so we feel comfortable.
Thank you very much.
I'm back to Epine. You take 10%. And how much do you have now in Belle Epine? And how much do you pay for this 10%? My second question is on the Slide 23, you talk about turnover.
But is it in just in one year for this? Thank you.
JEAN So Belle Epine, we can't be more specific. We bought 10% for €87,000,000 That's it. So can't say more.
But we only have 10%. We didn't own Belle Epinem.
Yes, the first.
Yes. This is the first. Yes. And
how much, please?
It's 87.
87.
Easy math. For the turnaround of the retailers, yes, the figures we are mentioning here for the malls are renewals and relatings with the refurb of the shops in one year time.
Twenty three percent was the page.
I think the that's where we have been very good over the years, and I would like to thank the team, is that we have been anticipating the change in retail expectation in customer expectation almost five years ago. So we have shrink quite dramatically our exposure to fashion, which is a segment which is a little bit too big today in the malls, and we are doing that pretty fast. And we are developing health and beauty, sports and other segments and restaurants. So yes, these numbers are real numbers. And I invite you to go to Asago, Milan Euphoris, and you will see that we have completely transformed this mall.
We upgraded the customer journey. We refurbished the center, we have changed almost we will have changed almost half of the tenants.
Something else. Do you have some facts about Creteil Soleil extension? Does it work? Is it a success or not?
I'm
wait and see. It opened in November. Since that date, we had a little bit of strikes, but the footfall has increased by 19% since we have opened. So the stores are doing excellent. The restaurants are fully packed.
We are very optimistic. I think the and why we think it's relevant. Crete Isolais is 100,000 square meter mall, okay? And we are adding 10% more. We are doing more cinemas, more restaurants and few shops.
So I think this is a great addition to a mall which has already 21,000,000 visitors. And I think the risk reward of such development is good. So we are as you can see, we were 100% leased at opening, which is also in the current environment, a sign of the appetite of the retailer for such malls. And as you can see on the picture, the quality of the design and the quality of the layout is really changing the mall. So the next step for us on Creteil is to do the renovation, which is underway.
This will be done by the 2020. And we have great expectation for a center. We want it to be the best mall in the East Of Pice. That's the ambition.
Okay. Thank you. I think we have another question on the phone.
The next question comes from the line of Jonathan Koenigsel from Goldman Sachs. Please go ahead.
Morning. Thanks for taking my questions. Three questions actually, if I may. One, to come back on Belepine, can you just clarify if the owners have asked you in effect to take skin in the game or if you knocked on the door and wanted to own 10% of the center?
That's the
first question. The second question on the CapEx like for like. Can you perhaps give a bit more color on the reduction from €127,000,000 to €98,000,000 and what you expect is a recurring level over time? And then more specifically, if you can comment on the performance of Germany, particularly, obviously, on the rental adjustment. And also in Scandinavia, the level of sales was perhaps a bit disappointing from retailers.
And give a bit more color on that as well.
Thank you, Jonathan, for the not the three questions, but four. So Belle Epine, we didn't expect that we will have so many questions about it. But so Belle Epine, it's a mix of skin in the game and knocking at the door, but the skin is not blocking the door. So this once more, it's a good acquisition. We are very happy to have done it.
For the CapEx, I think we are the most transparent we are as transparent as possible on the CapEx. We have three CapEx line. We have the CapEx for maintenance, which are mainly all of it or almost all of it is recharged to the tenant. We have leasing CapEx to host new retailers, and we have renovation CapEx. And the numbers we are posting is not fluctuating that much between a year to another for a portfolio of €24,000,000,000 or €23,000,000,000 So we think it's a decent level of CapEx, and it shows also that there is not an inflated number of TNAT incentive.
So we think we can run the business with that level of CapEx going forward. So moving to Germany. Germany, I don't know how long I would have to make the same answer to the same question. That's the German portfolio from Corio has been over rented. So we are mark to market marketing the rents.
We did it for Duisburg. We did it for Dresden this year, and we will do Berlin in 2021. So and when it will be done, this will be stabilized. And we are happy with the portfolio. These three assets are doing quite okay in a German environment where sales are slightly increasing.
The occupancy is growing. And more importantly, the tenant mix is changing. So the our leasing platform enable us to change the mix significantly. We have introduced many Inditex brands and other brands that were not in the malls and are doing pretty well. One more year to go, and German would be done.
I probably have sorry, Jean Marc, I probably asked the question already many times before. But aren't you subscale in Germany? And why do you effectively stay in the country?
We have not been asked to get out. No. So no, the we once more, we create value. So we those assets, we knew that they had to be turned around and to be released and to be remarket. So and this is what we are doing.
And I'm pretty optimistic that in 2021, this would be done. And Scandinavia. Scandinavia sales are a little bit disappointing, I confess. The fashion segment in Scandinavia, like everywhere in the world, is decreasing. So we are currently replacing fashion by other segments.
So we are in that phase. And that's why you can see that sales are a little bit disappointing in mainly in Norway, but we are on it. And we also have to remind ourselves that sales were plus 6%, plus 5%, plus 6% in the three years in 'fifteen, 'sixteen and 2014. So they were also very high. So this is an adjustment we don't see a long term trend there.
So it's a mix effect and not necessarily an underlying macro Outlining?
I think it's mainly coming from the fashion segment. We have you know that Scandinavia, it's the fashion segment is mainly local players. And like everywhere in the world, those players are restructuring and they are changing their business model. So we are changing the mix, and this is going to improve.
Okay. Thank you.
Thank you. I think there is one more question on the phone.
The next question comes from the line of Bart Gaitens from Morgan Stanley. Please go ahead.
Hi. Can you hear me?
Yes, yes. Very well. Hi.
Clip here is now the most highly rated retail REIT in Europe, and many of your peers are trading materially wider on NAV. You've got a very strong balance sheet, just a bit like your main shareholder, Simon. And Simon has been buying retailers recently. And this week, it's also been linked to potentially buy another retail REIT. Is that something that obviously, don't expect you to comment on M and A, but could you revisit your acquisitive approach again FRANCOIS at some point?
Thank you.
I think the your questions are and thank you for them, but you take the precaution to say that we are not going to answer. That's what we are going to do. We don't comment what peers are doing. They do what they can, and you need to ask them. And we leave that to the others.
For buying retailers, I think you should also ask the question to David Simon. He had his earnings a day ago and had a lot of questions about MICHAUD it. And I think today, this is not on the agenda for us. No more comment.
Just to say also that we are very concentrated on the business itself, on our operations. This is the way we pay most of our attention today to improve our portfolio and to continue to deliver very good operational results.
RAMON Thank you.
Thank you.
And we have a question on the web from Vishal Lakhani with Exane BNP Paribas. It's interesting to hear of alternative uses such as the hospital and Vale. Specifically on the hospital, what rent do they pay? And how does it compare to previous occupiers or major space users?
I think PAUL we need to look at the business as a whole, okay? If we want to itemize one by one, okay, everybody is going to get confused. We are signing 1,600 leases a year. We have more than 10,000 leases. So our business is I think today, what we try to do is to give more reasons for the people to come in our malls.
So we are fruitful and sales driven. And one of the so the strategy for us is to combine shop meet connect, so not only shop, giving more reasons for the people to come, to connect, to meet. And this is a fundamental element in keeping the attractiveness of our malls. So I will not comment on the specific deals, and have nothing to hide, but I think this is not the purpose of doing it. And then last but not least, I think what is important in our industry today is that there is a growing aspiration for customers for more environment, more social and more local, okay?
That's a growing concern. That's a growing aspiration. So every time we go in that direction, okay, act for good in leasing, okay, we are also increasing drilling time, and we are making our places more vibrant. So and at the end of the day, this is what we are doing, and this is what we should do. And we are and I would say we don't see it as a drag to our growth profile.
This is contributing to the growth. This is improving occupancy everywhere. So this is a positive impact to the growth of the the organic growth of the company.
PIERRE Okay. So I think we have no more questions on the phone or online. So I don't know if we have some more in the room. One, two, three. Okay.
So thank
you very much for attending and for your questions. We hope the answers have been right and precise. And see you soon, all of you. Have a good
day.
Thank you. Bye bye.