Presentation bc market analyses bobca ver 1
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Transcript of Presentation bc market analyses bobca ver 1
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De power of professional financial management
fin POWER
MARKET ANALYSIS 2010
Presentation BOBCA, 5/10/2011
DRAFT VERSION – FOR DISCUSSION PURPOSES ONLY
BUSINESS CENTER MARKET IN BELGIUM
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I. Business centers in Belgium I. Number of business centersII. 3 types of shareholdersIII. Location of business centers
II. Financials of business center in BelgiumI. TurnoverII. Added valueIII. Financing structureIV. Personal V. Operational profitabilityVI. Net profitability
Annex : • List of inventarized business centers
INTRODUCTION
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Business centers in Belgium : See list in annex Research by a maximum of means
Growing market if you know new centers, please let me now.
What is a business center ? Uses this as name of his business Including ‘bedrijvencentra’, excluding ‘innovation centers’/incubation centers !! Serviced offices = full time reception services
Used figures : Published financial data Added by questionnaire august 2011
INTRODUCTION“Definitions and limitations”
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Total appr. 120 business centers in Belgium :
29 ‘BC’s’, bedrijvencentra
9 Regus
5 NCI/Multiburo
7 groups with 2-4 centers
56 ‘individual business center owners
First estimate of the market (appr. 90 % reliability)
3500 individual offices, 10.000 workstations ?
200-250 meeting rooms
Appr. 3 - 5000 virtual offices
Listing is not ‘clear-cut’
No innovation/incubation-centers
No ‘co-working-spaces
Not included : incubation/innovation centres, > 30 in
Belgium – mainly in the Walloon region.
We have in Belgium appr. 120 business centers, of which appr. 50 % are individual centers.
I. BUSINESS CENTERS IN BELGIUM1.1. Inventory
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75 % of the business centers are situatied in
Brussels, Antwerp en Gent
95 % of the internationally owned
85 % of the privatly owned
30 % of the semi-public-initiatives
The penetration in other cities is very low, mainly
private and semi-public initiatives
3/4th of all business centers are located in the three main cities of our country.
I. BUSINESS CENTERS IN BELGIUM1.1 Business centers pro city
CityInternational
ownershipPrivate
ownership(Semi)-public
ownership Total
Brussel 12 33 3 48
Antwerpen 5 8 5 18
Gent 1 6 3 10
Charleroi 3 3
Mechelen 1 1 1 3
Hasselt 1 2 3
Sint-Niklaas 1 1 2
Namen 2 2
Aalst 1 1 2
Kortrijk 1 1 2
Luik 2 2 Other cities 2 3 22 27Eind-totaal 21 62 39 122
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Most business centers in Belgium are
situated at the suburban area of the cities
Only 1 on 3 business centers is located in the
centre of the cities
Appr. 20 business centers are located in
industrial site
Airway and motorways only attract a minority
of business centers
Nearly 50 % of the business centers are located at the suburban office-area’s of the cities.
I. BUSINESS CENTERS IN BELGIUM1.3. Business center pro location
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The market growth is very low for a ‘new en dynamic’ market
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.1. Turnover estimation
• Market appr. 50 Mio €– International BC 45 % of market– Private national BC 35 %– Public BC ca. 20 %
• Growth rhythm – YAGR ca. 3.5 % =/= inflation !– Private BC > 6 % and stable
growth rhythm, higher then inflation
– Semi-public BC, 2 %, lower then inflation
– International BC, 3.5 % but concentrated in 2006-2008.
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The market growth was only substanial in 2006-2008, 2009 and 2010 were years without market growth !
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.1. Added value
• More correct then turnover (estimated)
• Figures of 2010 representative, except for ‘international’ (Regus 2010 still not
available)• Growth rhythm remains
low– 2001-2010 : 3-4 %– 2006 – 2008 : > 15 %– 2009/2010 : no growth !
• International players have relatively lower added value (less ‘own’ building, see further)
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The three different market types have different ‘business models’
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.3. Fixed assets (Material fixed assets)
• Semi public BC nearly always own their property
• Private BC are the main investors in property from 2006-07 on.
• International BC do not own the buildings they operate in.
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The financing structure of the different players in the market is very different.
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.4. Equity
• The market ‘owns’ more equity then it has turnover …
– The ‘semi-public’ market has four times more equity then it makes turnover
– The private market realizes 1.5 € turnover for every € equity
– The international players realize the highest turnover with a maximum of leverage
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The financing structure of the different players in the market is very different.
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.5. Financial debt
• The three ‘business segments’ have a different financing structure :
– The ‘semi-public’ market mainly (80 %) finances itself with equity
– The private market has a gearing of appr. 200 % (2 € loan financing for 1 € equity)
• This indicates that appr. 70-80 % of the investments are financed
– The international players limit their financing and equity by renting their buildings.
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The semi-public initiatives have relatively less personal then the private and international business centers
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.6. Personel
• The number of personal active in this market is appr. 225 people– Excluding the appr. 50 – 100
‘fee-earning managers/owners’
• The number of personnel is growing at the same rhythm as the turnover does (3.5 %/year)
• International owners have relatively more personnel then the semi-public owners
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1 out of 2 business centers do not make an operational profit !
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.6. Operational profit
• The different segments of the market present totally different operational profitability :– International BC are (very)
profitable the last years– Private players have a declining
profitability the last years– The semi-public market do not
generate operational profits as a whole.
• 58 out of 122 business center lose money, this 50 % is relatively stable during the last 10 years.
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40 – 45 % of the business centers have a negative net result.
II. FINANCIAL DATA OF BUSINESS CENTER MARKET2.6. Net profit after taxes
• The international BC do make profit after taxes
• The private BC are also making losses, due to the limited operational profitability and the substantial financial costs
• The semi-public business centers make net profit due to positive financial revenues and extra-ordinary income (sale of property).
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Conclusions
• The business center market has not grown in 2009 and 2010– After double digit growth in 2007 and 2008
• The ‘business models’ of the different kind of shareholders differ substantially :– International players are profitable, without investing in fixed assets– Private investors are operationally profitable, and focus mainly on the long-
time value of the owned building– Semi-public owners are making losses but are very solvent and liquid, and
they can survive through financial and extra-ordinary income