Nexity

Nexity SA
TypeSociété anonyme
Euronext: NXI
CAC Mid 60 Component
ISINFR0010112524 Edit this on Wikidata
IndustryReal estate development
Real estate services
Founded2000 (2000) [note 1]
Headquarters
Paris
,
France[1]
Area served
Europe
Key people
Alain Dinin (chairman and​ CEO)
Revenue€2.6 billion (2011)[2]
€113.53 million (2011)[2]
€58.15 million (2011)[2]
Total assets€4.27 billion (2011)[2]
Total equity€1.68 billion (2011)[2]
WebsiteNexity.fr

Nexity is a French company that focuses on real estate development and the provision of related services.[1][3] The company was founded in 2000 in Paris.

History

Beginnings: the Arnault family

In 1971, Bernard Arnault started to work in his family business,[4] the industrial and public works construction company Ferret-Savinel, owned by his father, Jean Léon Arnault.[5] There he began to develop real estate activities. In 1974, he convinced his father, then CEO, to change the focus of the company, sell the division of industrial construction to Quillery and use the money to enter fully into the business of the real estate. Following that sale, Ferret-Savinel changed its name, becoming Ferinel, and, focused on the real estate market, began increasing its portfolio. In 1988, following this success, the headquarters were transferred from Roubaix to Paris and the real estate branch was renamed George V Group.[6]

CGE steps up

The Compagnie Générale des Eaux (CGE) was established in the mid-19th century in order to provide water supply services to France's industrial cities. For the early 20th century, CGE was already one of France's largest private companies.

Through the first half of the century, CGE remained focused on its core water utilities operations. In the 1960s, however, CGE launched a new diversification strategy that led it into a variety of new markets over the next two decades, including the construction and real estate sales and development sectors. In 1979, the company increased this activity with the acquisition of Maison Phenix, a leading real state company. In 1988, CGE made another important purchase, obtaining the construction company Société Générale d'Entreprise (the future Vinci). In the 90s, during the French real estate crisis, CGE gathered all its residential real estate and development activities in a new subsidiary, called MI SA, which soon begun to be the leader of the French housing market.

In 1995, CGE bought the George V real estate division from Groupe Arnault.[6]

CGE restructure: CGIS era

CGE became a company, with a wide range of activities (construction, telecommunications, pay television, facilities management, the operation of amusement parks, and others), but the incompatibility between its real estate and construction components led it into a crisis in the mid-1990s. CGE was restructured and the construction sector was formed into a separate company, Vinci. In 1996, the real estate branch was also reorganised into a sole subsidiary, Compagnie Générale d'Immobilier et de Services (CGIS).[7] The lack of coordination between different areas, however, continued. CGIS had to sell many assets to stay afloat and CGE finally decided to separate from the real estate area, adopt the name Vivendi, and refocus itself as a media and communications firm. CGIS and MI were apart soon after.[6]

European expansion and refocus: Nexity era

As a new independent company, CGIS difficulties continued. It sold its hotels to Accor and Pierre & Vacances and a number of its La Défense buildings to Unibail. In 2000 CGIS was sold in a management buyout backed by CDC Ixis Capital, LBO France, and Lehman Brothers, changing its name to Nexity. In 2001, was created the Spanish subsidiary (even though operations there were made with French property since the 1990s), as well as the Portuguese. In 2002, was established Nexity Belgium. In 2003, Nexity separate itself from its engineering services branch, Cotebo, in order to focus on property services and development. In January 2004, it strengthened its relatively weak real estate services sector with the purchase of Saggel.[6]

In July 2007, the Nexity shareholders approved the issuance of 19997501 shares, representing a 38.2 percent stake, for the Caisse Nationale des Caisses d'Epargne et de Prévoyance (CNCE), through the Groupe Caisse d'Epargne (GCE), in exchange of a 25 percent of Crédit Foncier de France, 31.9 percent of Eurosic and 100 percent of CGE Immobilier services division, including Lamy.[8] Later, CNCE (currently Groupe BPCE) expanded its stake to 41.4 percent.[9]

In January 2009, Nexity sold its stake in Crédit Foncier to CNCE by 540 million euros.[10]

Activity

Nexity operates as a real estate development company in Europe. Its working areas include residential properties, office buildings, offices, business parks, warehouses, distribution centers, office facilities, and hotels. This is carried out through several divisions.[1][3]

Divisions

Nexity Enterprises

This division specializes in the development and renovation of skyscrapers and similar structures.

Geprim

Geprim centers on the development of warehouses, distribution centers and mixed-use units.

Nexity Services

Nexity Services provides services during every stage of a project design, purchase, daily management, renovation and sale.[1][3]

References

Footnotes

  1. ^ Date since when it used the name Nexity.

Citations

  1. ^ a b c d "Company Description: Nexity S.A." businessweek.com. BusinessWeek. Archived from the original on January 18, 2013. Retrieved 15 August 2012.
  2. ^ a b c d e "2011 Statutory Auditors' Report on the Consolidated Financial Statements" (PDF). Nexity. Archived from the original (PDF) on 2 July 2013. Retrieved 15 August 2012.
  3. ^ a b c "Company Profile: Nexity S.A." reuters.com. Reuters. Archived from the original on February 1, 2013. Retrieved 15 August 2012.
  4. ^ Adams, Susan; Elliott, Hannah (4 November 2010). "Master uof the Brand: Bernard Arnault". Forbes. Archived from the original on November 8, 2010. Retrieved 15 August 2012.
  5. ^ "Bernard Arnault: France's 'wolf-in-cashmere' billionaire". France24. 22 January 2020. Retrieved 23 April 2020.
  6. ^ a b c d International Directory of Company Histories. Vol. 66. St. James Press. December 2004. ISBN 1558625119.
  7. ^ Lentschner, Keren (14 October 2007). "Alain Dinin, le " chti " devenu roi des promoteurs" [Alain Dinin, the "Northerner" who became king of promoters]. lefigaro.fr (in French). Le Figaro. Retrieved 14 August 2012.
  8. ^ "Press Release". euronext.com. Euronext. 7 July 2007. Retrieved 14 August 2012.
  9. ^ "Nexity : la CNCE a repris 1% du capital depuis fin avril" [Nexity: CNCE took over 1% of capital since late April] (in French). Trader-finance.fr. 17 July 2009. Retrieved 15 August 2012.
  10. ^ "Nexity sells Credit Foncier stake to CNCE for EUR 540m". PropertyEU.com. 30 January 2009. Retrieved 15 August 2012.